Abramovich increases his position size from 40 to 44%13 Nov 2019 12:59
ZOLTAV is currently one of the best oil and gas movers so far in 2019. Abramovich buying more this year is an extremely bullish signal and the upside looks vast. The story isn't about the 2 producing fields presently but the transition to around 28 fields! A great post copied from advfn here:
'The way to think of this as is as follows. Proven and probable at Bortovoy is 750bcf gas. Absolutely Huge numbers for this category. Where’s the excitement ? It’s as follows.
1) the 750bcf is assigned to only 7 fields when Zoltav has on this licence area closer to 30 fields. Basically off the chart upside for proven and probable category. The surplus (20+ fields)are and will be evaluated. The prospective again being 925bcf in the mean category.
2) of the 7 fields with booked reserves, ZOL are presently only producing from 2 fields and extracting less than 2% of the total 2p reserves numbers. Gives you a sense of asset life - essentially decades.
3) the feasibility study completes end of year. Remember this significant undertaking has tested Former soviet wells in fields that are not presently connected to the western plant. Management told The market that “all wells tested in line with or better than management expectations”. The only technical issue being encountered on Nep 1. It’s no surprise that Abramovich upped by 4%. Remember It’s the Feasibility study that will demonstrate how ZOL starts production in the east (where the upside is 18 fields!) and west and thus can tap into the monster net revenues and PVs. In the proved category alone , degolyer and mcnaughton estimated over $830m net profit as base case. In the base case for proved and probable that soars to $1.9bn net profit. The lead shareholders paying £1+ totally stacks up !
The majority in the market remains asleep to what ZOL has, and the catalysts ahead that will unlock this Tremendous value'