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https://twitter.com/zenithenergyltd/status/1353666423332237312
Earlier twitter pics were coming thick & fast ... more or less every week i.e. rigging up, drilling and later cementing, dismantling and nothing since 7th Nov, wondering if they damaged something in moving and waiting for some replacement. Otherwise at least they could have posted that it has been rigged up, tested & ready to go again at new location i.e. C-30. Hopefully, everything is fine & just waiting for only approval.
I don't think that C37 is currently producing otherwise SP would have been higher.
ZEN would have mentioned C37 well in 15th Nov RNS at least as it would have been significant if it has doubled the company's production.
https://www.lse.co.uk/rns/ZEN/filing-of-quarterly-results-8vgdeq3p6sg8ldu.html
In that RNS, ZEN did mention Oct's item i.e.
"On October 1, 2019, the Company announced that, following negotiations with the lender, it had successfully agreed to reduce the value of the Loan Facility to a new total amount of US$1,000,000, representing a profit of US$1,080,523."
Lets hope C30 is successful.
Thanks slicevolley.
If C37 still producing 285 bopd then I am happy with that even if it doesn't increase any further as in my view 285 result is better than expected.
I think in next RNS, ZEN should update regarding C37 as well i.e. how much it is producing per day, just to confirm to market.
It is disappointing to see SP at this level, with C37 producing this much, SP should be far higher, hopefully re-rate will happen soon.
"Zenith announced on Wednesday that their c-37 well at the Jafarli field (which I have visited) flowed at 285 bopd on test, a good deal higher than provisionally expected."
https://www.malcysblog.com/2019/10/oil-price-amerisur-trinity-jog-reabold-zenith-bpc-and-finally/
Surprised by the interview as was with last RNS :-)
First time I have heard somebody asking tough questions to AC, Sarah Lowther done very well. AC was also straight with his answers.
So looks that if ZEN won't reach total of 1000 bopd from C30 then we will reach by next well but now chances are very high to get close to that figure as C37 itself producing in good quantities.
Further, I thought that next well will take some time after C30 as they have to decide location, it looks that they have already decided now ... horizontal well which could produce 3000-4000 bopd. So looks that by March ZEN will be producing 4k-5k in total. Sounds great :-)
https://total-market-solutions.com/2019/10/10/hear-zenith-energy-cough-up/
Unexpected RNS today and couldn’t believe the contents of RNS
Excellent stuff, far exceeds the 200 bopd I was expecting, finally :-).
I thought it will be 6p before we get such RNS so long way to go, SP in high twenties should not be far away as C30 most likely will flow better than C37
Thanks AGEOS.
Not sure if you saw the last interview in which AC did say that 1000bopd for next year, so most likely they may do enhancement to rig after C30 and may not go for directional/horizontal drilling for C30.
not only RNS but the interview ... day before was very misleading and I think that's why they made it private now, can't watch it any more.
https://twitter.com/IGTV/status/1179390594721992704
https://www.youtube.com/watch?v=DAutUe4zX4c
Unfortunately market doesn’t consider C37 well as success as AC mentioned, not only they are forecasting less now but they are unable to produce at the moment from this well.
“if placed on full production, can produce up to 100 barrels of oil per day ”
Hopefully before Christmas we may have flow rate from C37 and C30.
Yes, definitely much more patience required.
looks that going to be a long wait for me before I will come out of red .. may be after ZEN1, another year.
C30 - 20 days to dry the site and may be a month to move the rig .. likely by end of Nov when drill bit will start turning again.
If I remember correctly then initial guidance from company was around 150 bopd from C37, if it is better than expected as per today’s AC interview so hopefully may flow around 200 bopd or so, c30 most likely will be slightly better. Though all in all ZEN won't achieve 1000 bopd this year but I guess if c37 flows more than 150 bopd then I think sp will start climbing towards twenties as ZEN will be producing above 700 bopd this year if everything will go as planned.
yes, around 3:20 in interview AC did say that 1000 bopd by next year or possibly in next few wells.
So doesn't looks that C37 & C30 will contribute that much to existing production to make it to 1000, lets see what will be flow rate of C37.