Member Info for SEA7

Total capital expenditures of USD$749m (USD$ 599m net to the Company) have been estimated to redevelop the oil fields in the block. During 2019 and 2020, it is estimated that US$ 3.5m will be spent upgrading the gathering system and central facilities in Azerbaijan to improve safety, efficiency and handle higher production rates.

From 2020 through 2024, 3D seismic programmes are expected to be run to fully delineate the various pools and formations to optimize the drilling locations.

Development drilling will commence in 2019 and continue to 2035. It has been estimated that each well in the proved case will cost USD$ 4.3m. This cost will include the direct cost of materials, fuel, salaries, etc. to drill the well as well as an allocation for the purchase of one drilling rig, well completion and tie in. Each well in the proved plus probable case is expected to cost USD$ 5m. In addition to the costs anticipated for the proved wells, wells in proved plus probable category have an additional allocation of the periodic leasing or contracting of additional drilling rigs and expansion and modernization of the field facilities.

from ops update November 2018 - yep nearly a year ago...

The Company confirms that the truck for the A-100 truck-mounted workover rig has been completed by AutoKrAZ in Ukraine following the installation of an enhanced 375hp engine. Zenith's team is now completing the delivery acceptance checks and arranging for transportation of the rig to Azerbaijan where the workover rig structure, including the mast, will be installed. The Company expects the A-100 workover rig to be deployed in operations by the close of 2018.

no I would say they didn't have the cash. That A100 has been sat there and they probably have paid for it, bit by bit and now, finally they have paid it off and can have it, or at least paid most of it.

a year ago, it didn't have any of the rig on it. It was just a flat bed truck, minus the flat bed.

Mind you, they have put a sticker on the cab door.

likewise

this tweet was an hour ago - same time as the stock price rising above 7p on the bid - just shows the momentum this gathers, when it wants to.

raising the zj40 derrick today.

https://twitter.com/BlockEnergyplc?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

i see someone bought 56231 shares and then fifteen minutes later, sold them at a loss.

and our missing a100 rig being prepared for delivery

analysing cuttings

https://twitter.com/zenithenergyltd?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor

for the record, I currently hold at an average of 8.4p, which I think is good value, when the wider plans are considered. If it goes to 3p in the short run, then if I continue to hold, I am saying that I still believe in the plans and that the stock still represents good value at the price I hold. This means I will add further at such a discount to what I currently hold at. My last purchase was at 6.4p

If they only get the initial guidance of 325bopd from 16az after all their efforts and then have the same result at 38, then we are likely to be quite a bit higher than today.

Most of this depends on your investment horizon- anything less than six months and yes, the current sentiment will be an issue, however, anyone looking at over six months hold, shouldn't really have to concern theirselves.

Plus the fact - if the stock did hit 3p, then I will re-evaluate at that point and decide if it is worth continuing to hold and possibly add significantly, if it is still worth holding.

thing is nomura, just because others are selling their stakes in this company and the selling is reflected in the mcap quoted on the exchange, doesn't mean that the holding I have is accurately priced, based on the balance sheet assets/liability net position and the expectations of future developments in the company. We are looking at future developments and have an expectation that each invested pound in the business, will begin to generate returns well in excess of the invested outlay at the end of the capex phase at each well workover/drill.

This should then give us a very respectable BOPD rate, plus good gas sales, cashflow and cash position, with a forward plan for expansion and subsequently a stock price that is a lot higher than it is today, even though it still won't accurately reflect the value of the business, as markets are sentiment driven and not much else.

The value of the business, is rarely ever what the daily quote is and changes to or from, just because someone decides to sell their holdings.

well done on spotting that opportunity Hillybilly

must have missed that, thanks

two trades of 250k shares at 4.3p just went through?

well, now that i have got that mobilisation notice, as agreed, which is in line with expectations, I have bought some more this morning at 6.4p

This is an obligatory, operational rns relating to the next stage of the drill program and nothing more. It simply advises us that, as planned, the zj40 has been mobilised, which triggers the contract.

I have been waiting for this and am pleased to see it today.

The part about completion design optimisation, does imply that they have faced issues at 16az and that 38z will be approached in a different way regarding completion.

could be an operational decision that has caused issues at 16az or geological, we do not know - once they reach a definitive point in 16az, one way or the other, we should hear about it.

(for the record, I have seen in others stocks, wells have been producing, then stopped and nothing is ever said). You find out months or even a year later in the accounts, that a particular well was abandoned and if you are lucky, a reason given.

bill - you may be right that the market will value the company on delivery, however, it is priced on sentiment. This is where the opportunity to profit comes in.

Sentiment is down, as is the price, however, the underlying value hasn't changed.

there is a trade reported for 52039 at 0907