Member Info for MarketGunslinger

Yes you have missed an RNS from the 24th January which explained that there was an issue with the casing integrity and production had been suspended. https://www.lse.co.uk/rns/ZEN/operational-update-8211-tunisia-4vmmhqa6vk2la0p.html

This is why they announced today that they were sending the workover rig to repair any issues.

I have also just seen today’s RNS from ADME. This further vindicates Zenith’s decision to not renew the Barracuda option until the legal arguments are sorted as they have just announced that the court case has now been adjourned until 5th May.

The original injunction preventing NHNL from selling any of OML141 was put in place on December 10th so it will be 6 months at least before we can be expected to get any clarity on whether the ONL141 deal is even doable, and truthfully, it will probably take much longer than that as I cannot imagine that African courts move at any great speeds.

We should come back to this in May, if it is still possible and if we have not bought any better assets by then.

I have to say that I think that it is a good thing that Zenith have pulled out of the Barracuda deal until the legal mess with it is cleared up.

1) It was an expensive deal which would have cost us $20 million to acquire a 40% stake.
2) The whole situation between ADME and NHNL seems a total mess that is not going to be sorted out any time soon and if ADME are still involved in it then Zenith would basically be paying for their way without a big enough equity holding to make it worth our while.

Andrea said in the February investor conference call that one of the key priorities of the company is to acquire assets that can both be completed quickly and also be drill ready quickly. Barracuda matched this criteria perfectly until the legal action came in and then it fell apart. I am glad to be out of it.

We can now focus our attention onto both developing our existing assets and acquiring new ones. Of course, the main acquisition that we all want to hear about is Tilapia, and hopefully there will be some news on this soon as Andrea said in the conference call that he would be travelling there some time this week. However, it is also worth remembering that Zenith is also looking at acquiring new assets elsewhere too. Notably this includes additional gas assets in Italy and the two large (presumably African) negotiations that Andrea has said could be the company-changing ones that have the potential to increase our market cap by ten times. I also note that we are apparently in negotiations for up to 6 different assets in Nigeria so hopefully we will see something from one of these too.

14. Where do you see Zenith at the end of 2022?
a. In production of in excess of 3,000 bopd (1 million per annum)
b. Completed one of the supernational negotiations that we are doing in Africa which will allow us to raise money without issuing equity (presumably he is talking about debt here). Ou r focus is now on selling oil and minimal dilution with the board considering a buy-back programe. We printed equity in the pandemic as this
i. Local lending by local banks in countries
ii. Supernational lending – African development back
iii. Pre-sales of oil and also progressing the bonds where we have always paid unlike some of our peers and so investors wish to reinvest in the Zenith bonds.

9. OML141 March 1st expiry and court case. What will Zenith do if it is not sorted and can Zenith walk away ?
If we want we can walk away today. We have no obligation. However, it is very strange and with an element of malice that the court ruling is set at the same day of our expiry. We could get an extension on the option with NHNL if we wanted but we are wary of getting stuck in another Tilapia.

We are already in negotiation of 5-6 Nigerian deals and the appeal of OML141 was quick production and staggered payment. We understand that retail investors don’t want long-drawn out negotiations and we are always looking at speed of executions without bureaucratic complications (transactions between private companies) and that can be brought to productions quickly. However at the same time this is Africa .

For example Baraccuda would have been perfect if it was not for the malicious court case and so we could have completed the transaction in a matter of hours were it not for the court case. Note that this is not the only opportunity that we have and we have many many good opportunities.

10. What is your prediction on oil prices in the next few months and how does this affect Zenith from an equity point of view?
Many oil price specialists have said that a full invasion of Ukraine would see the oil price above $120. Remember that there has not been much investment in oil over the last 18 months and Covid being over will increase demand. We are very profitable at the current level. I am disappointed that our share price has not increased but our share price is driven by news. WE want to get institutional investors to be brought on board in both London and Norway who will see the potential long-term?

11. Is Zenith more profitable than any time in its history – Italian profits, price of oil and less equity raising. Is the company more profitable now than at any stage in its history?
Yes, absolutely. We have repaid most of our debt, have very profitable daily operations and have a trend to complete acquisitions. We are in a good position in Africa where there are more fields for sale than there people who are eligible to buy.

12. Does the company have any plan to initiate a buy-back programme to reduce the number of shares in issued?
The BoD is meeting in 3 weeks to discuss initiating a buyback program.

13. July 2021 AC mentioned that they company was looking for big assets that might enable the company to increase 10-15 times in size – 2022?
At the moment we are in to negotiations of this size. They are not yet at an annoucneable stage but we have developed new avenues in new countries that were not previously knows.

Questions

1. Congo – how close are we to getting approval for the T2 license?
This is difficult to answer if you do not understand African bureaucracy. We are in a very advanced stage but in Africa this still means that the minister can go to Opec conferences for two month and other officers are sick or not working and so there are cultural reasons that delay our closing of the transaction. The winds are blowing in our favour and everybody is convinced we deserve this field, but we have to wait a little longer.

2. When are you planning to go to Congo?
In the next week.

3. If Zenith is awarded T2 – how long will it be before operational/drilling activities can begin?
6 months from the signing of the license.

4. Why are big companies leaving Tunisia if there is still so much potential in these fields?
Oil companies are generally leaving medium size countries and fields and are only focusing on huge fields (usually offshore) which deliver their cashflow. Getting rid of their smaller fields allows them to say that they are getting out of “bad” fossil fuels but it gives opportunities to companies like us. We can therefore do quick transactions with the majors and don’t have to go through governments, We are also an operator and are recognised as such by 5 countries and majors and ministers will not allow the purchase of these marginal fields by somebody who is not an operator.

5. Nov 2021 investor call mentioned negotiations for new assets in Tunisia,. How are these processing?
We are still negotiating on a number of deals but with oil prices as they now are these acquisitions are getting mor expensive and so we have lost a number of these deals dues to a raising in asking price. In Tunisia we are having two negotiations which we hope to complete in 2022.

6. El Bibane – is there a timeline for the shut-in El Bibane 3 well?
El Bibane is 100% controlled by us and so we do not need to get their official approval like we do for Ezzaouia. In Robanna we can guarantee that we will do the remedial work and Rob1 and drill Rob3. In the case of El Bibane we are examining the re-entry of a well that has the potential of producing 600 bopd.

7. Rob1 – what is the plan and when will the remedial work begin?
Imminently there will be some operational development and we will make an announcement

8. Will the SLK transaction be done in the same way as the CNPC one?
The legal fashion will be identical and we want to increase production there to thousands of barrels a day via artificial listing.

Rob-1 well we are looking to repair the casing at the moment and we are also preparing to drill Robanna 3 this is analogous to a competitors well which has always done 250-300 bood.

El Bibane is our first experience offshore and we are currently just producing condensate.

The blend of oil that we produce is sold every 9 months and we will be selling our next export cargo at the beginning of April.

Sidi El Kilani is a very famous field and it still produces naturally with very little artificial stimulus. KUFPEC and CNPC found SLK too small for them to be interested in so there is plenty of development potential.

Production in Tunisia is perfectly located to export our crude oil to Italy.

There are also possibly other acquisitions in Tunisia but our initial strike took all of the small and easily available assets and so we prefer to focus in other jurisdictions where we can complete deals more quickly.

I know that sometimes our shareholders are frustrated with how long it takes between talking about a deal and then completing it but in Africa time is very difficult and there is nobody about (our size) who is completing transactions quicker than us. Zenith is a very aggressive company but we do things above board and so we are not worried about falling foul of authorities. This means that we cannot speed up African bureaucracy but our solution is to have multi-pronged deals in process so when one is stalled then others are in progress.

I am very confident in the success of our ongoing transactions or I would not have bought 40 million shares the other month. Slide 13 show what we are up to but we also have the court case vs the SNP and the $5.7 million owned by the SNPC which is not contested.

In Tunisia we are about to sell 114000 barrels of oil and are about the drill Rob 3 as well as drilling two new wells in Ezzaouia.

Now onto question which may clarify anything I have forgotten.

My notes taken during this morning's investor conference call:

Zenith currently has production in Italy, Tunisia and Congo but we are also in official negotiations in Nigeria and many more that are “cooking” elsewhere.

Italy is the surprise for 2022 as gas producers have been suffering from low prices through from 2010 to 2019. Suddenly for geopolitical reasons we have had an increase in gas price and the price has continued to sky-rocket as there is a shortage of gas and the lack of supply has boosted gas to this level.

Zenith have always believed in their Italian gas operations and we believe that we are in a new era of gas and there may not be as much of this around as we need. Ther is now a ministerial movement in Italy that will help bureaucratic processes to be speeded up and make gas production easier. We know that we have to take official promises with a pinch of salt but it does look like the situation will help us grow our production and acquire new assets.

Our existing gas production that was never traditionally mentioned by investors now delivered a lot pf profit and we are looking at acquiring more gas assets in Italy or neighbouring Europe.

In Tunisia we have made great advances in 2020 and 2021 when we completed the acquisition of two companies quite rapidly (Ecumed) and then we were able to complete on Nov 17th the acquisition of 22.5% of SLK and we are still targeting the acquisition of KUFPSC’s 22.5% stake also. This shows our ability to grab the opportunities that come from majors and second-tier majors to abandon their overseas assets. The supermajors want to get away from any producing field that is not vital for their cashflow. In principle this means all the fields in Africa as the super-fields are all offshore.

Zenith has many other negotiations going on in Africa which have not reached announceable stage yet. However, we are looking at trying to acquire assets that can be closed quickly. Our African experience started in 2019 when we acquired AAOG Congo from AAOG. After 2 years we are still waiting but we are still supremely confident that we will complete this transaction. It has taken longer than has been expected but the consolation on this is we can be awarded with more than just Tilapia. Tilapia is a great field that is very affordable and it should only cost $5 million to get production of 5,000 (AAOG said). We are slightly more more cautious in our predictions but still expect production in the thousands.

In Tunisa we are moving from exploration to production. With Ezzaouia we have a number of projects that we cannot announce yet but we hope to announce the development plans in a few weeks and this should hopefully add 1,000 of production only in Ezzaouia.

Robanna was the first field that we worked on and its current capacity is 250-300 bopd but the field has not been maintained for the last ten years so there is a lot of work to do but we only bought Robanna and El Bibane for $100

These are the questions that I have emailed to the company for answering in tomorrow's investor call.

Congo

1. How close are we to receiving approval for the Tilapia 2 license?
a. If we were to be granted the next stage of approval in March then how long would we have to wait before we were able to commence drilling?
b. In the May 2021 investor call Andrea said that we could expect to receive multiple other Congolese licenses at the same time as being granted Tilapia 2. Is this still the case?

2. What do you think that the minimum and maximum production we could expect from completing the last few hundred meters of the TLP-103C well?

3. How much do you estimate that completing the TLP-103C well would cost?

4. Have we got a court date yet for the case in France against the SNP?

Tunisia

1. Are we still likely to complete the SLK deal with KUFPEC?

2. In the November 2021 investors call It was mentioned that we were negotiating to buy more assets in Tunisia – is this still the case, and if so how are these negotiations progressing?

3. In November 2021 it was mentioned that we were planning to carry out three workovers at Ezzaouia and these would be started in Q1 2022. Are we still on target for these dates?

4. Have we go any update on what the issue with production at the ROB1 drill is yet?

5. When do Zenith think they will achieve 1,000 bopd net in Tunisian

Nigeria

1. Zenith’s exclusivity deal with OML141 runs out on March 1st which is the same day that the court case between NHNL and ADM Energy is due to be heard in Nigeria. If this situation is not sorted by the 1st March would Zenith be prepared to walk away from the option rather than being drawn into a long-running African court case?

2. In the event that we do not go ahead with OML141 are there any other comparable assets that we could be targeting in Nigeria?

Overall

1. In the November 2021 conference call Andrea mentioned that: “By the end of 2022 we will increase our portfolio by new acquisitions that are not yet known to the public.” What is the progress with this?

2. In July 2021 Andrea mentioned that the company were looking for new deals for “bigger fish” which we cannot talk about due to market confidentiality. These deals would increase our stock price by 10-15 times. Have we made any progress with these?

There is definitely something going on with regard to Tilapia, there is simply too much scuttlebutt out there are the moment implying that things are happening with Tilapia for there not to be at least some truth behind it.

1. We know that back in the November investor call Andrea hinted that he expected that we would get news on Tilapia before the end of 2021 so we are already behind schedule.
2. From all of the information that has come out on twitter last week it looks like Andrea is due to meet with the Congolese very soon – and may already be there if some of the information that has been uncovered on twitter recently is to be believed.
3. We know that Andrea has repeatedly said that he is absolutely confident that we will be granted the Tilapia2 licence.
4. We know that Andrea has also said in the May and November 2021 investor conference call that May 2021: as soon as Tilapia was concluded this would be followed up with another Congolese license immediately afterwards.
5. We know that in the January bondholders newsletter Andrea wrote that: “It is our expectation that we shall soon be in a position to progress our activities in the Republic of the Congo for the award of a new 25- year licence for the Tilapia oilfield.”
6. We know that Andrea would not be going to the Congo if it were not likely that we could be signing the next stage of the deal on the Tilapia license.

Things move very slowly in Africa, and the news on Tilapia2 is already very overdue. However, it feels very clear that Andrea expects things to happen imminently and if the tweets that were put out from the Congolese side last week are accurate then he is already in the Congo or will be heading out there fairly soon. He would only be visiting in order to finalise the negotiations with the government for the acquisition of the Tilapia 2 license and potentially additional license(s) too.

All the evidence points to us being very close to getting the news we have all been waiting for in the very near future. The key element on this will be when Andrea goes out to the Congo as nothing will happen before he lands there for his meetings. As soon as we know for a fact that he is out in the Congo then I think that we can expect Tilapia news to come shortly afterwards.

Personally, I do not think that he is there yet as the company have always been quite quick at updating us with pictures when he arrives in the Congo, but I think that there is some truth in the rumours and he will be there soon.

If we can get the license granted and then get the well producing at a point in time when oil prices are at 10 year highs, then the rewards to Zenith for our efforts, and the impact to our investments as shareholders could be astronomical.

“It is our expectation that we shall soon be in a position to progress our activities in the Republic of the Congo for the award of a new 25- year licence for the Tilapia oilfield.”

That is an excellent find AGEOS and it certainly does indicate that Zenith are getting increasingly certain that we should expect some news on Tilapia in the near future, and you are correct in thinking that it would have been remiss of AC to mention it in the bondholders document unless he knew that we were making progress.

As we all know, despite the significant revenue that is being generated by Tunisia the big driver that is going to send the share price upwards is Tilapia so if this is an indicator that this is imminent then it is very good news for all of us. The newsletter itself is dated January and therefore must already be nearly two weeks old, so fingers crossed this means that we should be expecting news sometime this month and a share price of at least double where we are today when the news lands. Lets hope that Tilapia 2 is announced soon and we experience the re-rate that befits the company’s status. After all, in his interview with Stig Myrseth last year AC did state that once all of the assets were confirmed he expected our market cap should be about £35 million.

It is clear that a substantial increase in the Zenith share price is going to be reliant on the successful acquisition of either the Tilapia 2 license or something with equally significant potential. However I think that this is to ignore the importance of what is happening in Tunisia.

The London small cap O&G market has always had something of an obsession with big exploration projects and these are where the herd have traditionally piled in in order to seek multi-bag returns. However, a lot more of these “boom or bust” exploration plays bust than boom and this often leaves them as effectively nothing more than shells when their only asset does not actually deliver. Indeed, this almost happened to Zenith when the Azerbaijani experiment went wrong.

However, what Zenith are quietly doing in the background that I am both very impressed with (and also extremely frustrated that the market has not cottoned onto yet) is the development of the Tunisian assets into a significant cash-flow generator for the company. We already know that Tunisia is generating 1bout 420 bopd even with Rob-1 currently shut-in. Once this is back online and ROB-3 has been drilled we would expect Robanna alone to produce 500 bopd and which would mean that the company was producing almost 1,000 bopd. At current oil prices of $90 per barrel and assuming costs of $25 this would generate a net revenue of $24 million per annum and even at the current rates of 420 per day it is still $10 million per annum.

So yes, the big rise in share price will happen when we get granted the license for Tilapia 2 but in the meantime the market needs to catch up with quite how much money we are going to make out of Tunisia and, perhaps even more importantly, how easy it will be to fund Tilapia development out of Tunisian revenue.

The Italian electricity generation is more than just a nice stable income, it is starting to become a fairly significant income. At today’s rates Zenith would make a net profit of £2.4 million per annum out of the Italian electricity and while we are currently in the middle of December and therefore hitting what is probably the peak of the winter profitability for gas, it is clear that prices are going to stay high for some time longer, even if they are not always this high.

When things even out over 12 months It would not surprise me if Zenith ended up banking a net profit of £1.6 million over the course of the year. Demand is still high in Italy in summer because of air conditioning. and gas prices are not going to drop down to their old levels any time soon.

Obviously £1.6 million a year income is not company changing but this is pretty substantial since this equates to 10% of our current market cap and when you consider that this is coming from a part of the company that was basically just advertising 8 months ago it is a pretty massive change.

This is what I really like about the refocusing that the company has done over the last 12-18 months. We are no longer just reliant on Tilapia coming through (though that would obviously be extremely welcome) but we have a whole raft of different fields that are all contributing millions per year to the bottom line. This means that we are no longer beholden to one field going well and even though none of the production levels are huge in their own rights, when you start adding them up together then you can see that the time is coming where they will add up to a very substantial revenue stream. A market re-rate will then follow and that is when we will see the big money.

£1.6 million per year from Italy is nothing to get excited about on it’s own but alongside the $10 million that is already being generated in Tunisia at the moment and the additional $14 million that will be delivered after ROB-3, the Ezzaouia sidetracks and workovers and the second SLK deal are completed then we are looking at an operating profit that is about £19 million per year – which is more than our current market cap.

So a positive RNS for today and positive financial ouitlook for the future. 2022 could be Zenith’s year.

Looks like no Andrea Christmas present this year, which is certainly frustrating but not entirely unexpected given the glacial pace with which things seem to move in that part of the world. That said, although many long-term holders are reluctant to see it this way, things are still looking extremely positive for Zenith at the moment because the success in Tunisia is opening up so many different opportunities.

As I have said before, cash flow from Tunisia today stands at $10 million per annum and once the second SLK deal is completed then this will increase to £12 million and this number is enough to service debt of up to $20 million which gives the company plenty of financial ammunition to acquire new assets such as Barracuda- or something similar if OML141 gets too caught up in legal action.

Put bluntly, if you are a small cap company that can access a $20 million line of credit then there are always going to plenty of interesting opportunities being passed your way especially in current times when oil majors appear to be divesting assets in every corner of the world.

So yes, it is frustrating that Tilapia has not been gotten over the line yet but it is encouraging that very significant production assets have been put together in Tunisia and unlike the Azerbaijan wells these actually make money today. The company has already drilled one successful workover rig at Robanna and are planning to drill at least one out of the ROB3 infil well and the Ezzaouia sidetracks in Q1 2022 which should each generate an additional $5 million (approx.) each in cash flow.

The company is making steady progress to wards being able to purchase and develop some fairly significant assets in the pretty near future. Although we are not sure whether the first of these will be Tilapia, Nigeria or somewhere completely different we do know that in the background the Tunisian assets are just quietly pumping away and generating the money that can fund some pretty serious investments.

News is going to come soon and with it the longed-for share-price rise.

Happy Christmas everyone. I reckon 2022 will be a big year for Zenith.

Like I said yesterday the wider market is still deciding whether or not to trust Zenith after what happened in Azerbaijan. The company is making all of the right moves with the generation of cash-flow in Tunisia but for a real sea change to occur and for us to get an extended run up with the share price we need to get Tilapia over the line to show that they can really start delivering on all the promises made and indeed the promise of the company.

Andrea did say in the November Investor Call that “hopefully we will have some big news before the end of the year” so maybe we will get another Christmas present from Zenith and the Congolese government this year, just like we did last year. I would certainly appreciate it!

OfficerFigby, you are absolutely right I can see now that it was the Mengo and not the Djeno. The numbers are also a little higher than I though – it should be approx. 750bopd net to Zenith and not 500bopd. Thanks for the correction. You definitely know your stuff on Tilapia!

Ezhik – we had to agree on something one day my friend! I am sure that we will be back to disagreeing tomorrow but hope all is well with you and yours too. The 5,300bopd number came from the AAOG AIM admission document where they stated that this was what they believed production could be once both TPL-103 and TPL-104 had been completed successfully. BTW on Tilapia I am pretty certain that in one of the investor conference calls AC confirmed that they would be drilling a sidetrack on 103 (and that the idea of drilling through the plug was actually from one of the AAOG annual reports) but I will have to check my notes again later.

Mls678

My personal belief about why the sentiment doesn’t reflect the optimism is a combination of (a) the fact that the market is always behind the reality and sentiment often doesn’t shift until something provable has happened and (b) also a lack of trust in the company as a hangover from Azerbaijan.

I think that when we are looking at things objectively the failures in Azerbaijan really did some damage to Zenith’s reputation. What was meant to be a simple and straightforward process of doing workovers and then using the funding to drill exploration wells became a total disaster and, whether or not it was actually Zenith’s fault, damaged trust in the company.

This situation was not helped when the company acquired Tilapia but immediately had to re-bid for it and then put together the deals for SLK but was prevented from officially closing. This meant that for a long time Zenith was the “nearly company”. They nearly had Tilapia, they nearly had SLK, you could even say that they “nearly” have OML141 (with the mess around the ownership).

However, I think that this is slowly changing. The questions that remained around Zenith’s operational ability have begun to be addressed with the successful drilling of the ROB-1 workover and the completion of the first SLK deal has started to show that they are working out better ways of getting things done too.

However, I think that the key event that will cause a market-wide re-rate for the company will be the completion of the Tilapia deal. I think that this has become something of a holy grail for perceptions of the company simply because (if it can be pulled off) then it will show that they have acquired an incredibly valuable asset for only £200,000. The story seems too good to be true and so it actually has to happen for people to believe it.

Weirdly, my personal opinion is that the “reputational” importance of Tilapia to Zenith now massively outweighs the financial importance of the asset to the company. After all, the acquisition of Bir Ben Tartar would deliver $9 million a year of net revenue to the company (as opposed to $12 million from TLP-103C) and it could probably be delivered at a cheaper cost than drilling in Congo. However, I don’t think that it would have the same impact on the Zenith share price at all Partly, because of all of the time we have waited for Tilapia and partly because of Tilapia’s exploration upside.

The really important part of Zenith at the moment is the Tunisian production but I think that the market simply wants to see Tilapia over the line. After that the re-rate will come and the company will be looked at as an entirely different entity to how it is seen today.

Officer Figby

Unless, I have missed something then TLP-103C was never drilling the Mengo formation. It was only ever drilling the Djeno and the target for this was always approx. 1,000bopd. Andrea said directly in the financial fox interview on 2nd Feb 2021 that: “the (Djeno) structure is extremely promising as nearby all over the area of Point Noire this structure has produced 1,000 bopd everywhere it has been drilled. “

The company’s plan has always been to complete the sidetrack from TLP-103C and then to use oi from this to fund further drills (the exact same plan as AAOG had). So I am using the figure ofhalf of the suggested 1,000 bopd.

It would be great if we got more but the initial target is definitely only 1,000bopd. The bigger numbers come from the deeper layers. If you no different and can point me in the direction of the right information in interviews about this then I am happy to be corrected but at the moment this is what I believe to be the case.

Finally, in light of the announcement by ADM Energy yesterday that they are planning on going to court about their rights to OML141 (I had written a big chunk of my work over the weekend before this news was released) I would like to clarify my position on this asset.

I think that the license is a good one and the potential is enormous but with the news from yesterday that ADM Energy has taken legal action against Noble Hill then Zenith should get NH to agree to extend the exclusivity agreement until the legal issue is sorted. Zenith can afford to invest $20 million and to service it out of revenue from Tunisia but we cannot afford to invest $20 million and just have it sitting in NH's bank account. It has to be excited about drilling for oil and if the legal argument is preventing this from happening then we should sit on the sidelines until clarity is achieved.

The ADNM Energy vs Noble Hill argument is not our fight and we should only step in after it has been fully resolved. If a better opportunity comes up while this resolution is happening then we drop Noble Hill and move on to the other opportunity but if they can get the matter resolved legally before that time comes then we continue with them.

As I said, Zenith can afford to fund the £20 million but should only hand over any cash once the legal dispute is solved and in the meantime should be looking for alternative assets.

Obviously, to reach this revenue figure would require everything to go completely smoothly and it will not (even since I started writing this document at the weekend ADM Energy have released an RNS saying that they intend to take NHNL to court in Nigeria over their stake in it). But what is really important to realise is that with the branching out of the company into many different wells in many different jurisdictions then there is the ability to build the company in a sensible way without risking everything on a single throw of the dice. If the company borrowed $20 million to drill OML141 and the drill was a failure it is not the end of the world as the debt is just serviced as normal and the focus ends up in being on Tilapia and doing more there.

Even if Tilapia AND OML141 fail then as long as the Tunisian assets keep delivering as I have suggested there will be another $24 million in debt sitting there that can be sent on acquiring more assets.

The key point is that by delivering oil in Tunisia Zenith have opened up access to capital via debt and this, in turn, opens up a huge amount of possibilities for the company to do more and bigger developments on their existing assets and to acquire more and bigger assets for the portfolio. There is now a path to a bright future that allows us to raise more money via debt and would ever be possible via equity and for an oil company that has cash in its pockets there are always going to be plenty of opportunities. We just have to trust that the company will make the right acquisitions – and judging by what has gone on in the last year we are doing all right at this so far. Zenith is going places, and the market will catch up sooner rather than later.

Here's to a bright 2022 for all of us Zenith investors. I’ve got a feeling its going to be a good one…