Member Info for SEA7

thanks neilin62 - appreciated,

i have not completed my buying yet either - good luck also

i would be surprised if that were the case!!

thanks maladoni,

the 3d should show up some new structures that haven't been drilled before, hopefully.

an rns stating the clean up on 16az has progressed satisfactorily and the bopd rate is increasing, along with news on gas and spud dates will push this back up to a more reasonable level.

yes bigboffer

a lot of traders do not wish to understand facts, as that is not their reason for being here. They are only interested in volume of stock trading, volatility and plenty of interest on the BB's both positive and negative. That is how traders make money, no volatility or volume, they do not make any cash.

It is investors that want to know the details about the underlying instrument or stock they are buying, as they will be generally holding it for a lot longer, than a trader.

Speculators and investors, two different types of players in this stock, as is the case with most others.

thanks v111jas

thanks sieveco - much appreciated.

bigboffer,

thanks - my figures are meant to give a picture of what it is actually worth on 295 bopd only, as that is the most recent, rns's production figure, even though it is restricted.

i know the well is in a clean up phase and not producing at the optimal level they will be at in the short term.

when I see an rns stating other facts, then I will re run my numbers and see what washes out.

thanks groover,

madmanrob

see my post below - copied here....

at this rate, what does that mean for the sp.

£12m in cash.
about £3.6m coming in per annum on 295bopd from 16az.

The current cap is £31m. Take off the £12m cash, we are left with £19m to account for.

A p/e of 7 or 8 is not too demanding in my view for a producing oiler. At £3.6m per annum for 16az, it puts the stock on a p/e of 5.2 at 295 bopd.

pretty cheap at these levels, especially considering we have gas coming from 16az as well and spudding 38 soon, with norio an satskheni, keeping themselves going.

........

tks badger, at least were are interpreting the psc correctly and being able to derive some value to the stock and relate it to the sp.

lb28 - that is 100% of revenue - government of georgia will be taking 25% of that 432k

at this rate, what does that mean for the sp.

£12m in cash.
about £3.6m coming in per annum on 295bopd from 16az.

The current cap is £31m. Take off the £12m cash, we are left with £19m to account for.

A p/e of 7 or 8 is not too demanding in my view for a producing oiler. At £3.6m per annum for 16az, it puts the stock on a p/e of 5.2 at 295 bopd.

pretty cheap at these levels, especially considering we have gas coming from 16az as well and spudding 38 soon, with norio an satskheni, keeping themselves going.

actually, i correct myself, the psc limits all operating costs, capex recovery and historic recovery to the first 50% of revenue, so the figs are not likely to be higher, once wellhead lifting costs etc are considered.

lets look at 295bopd that we know of.

295 x $60 urals is $17700 per day. if the well cost $1.5m to workover and there is a $6m historic recovery pool, then we can start clawing back $7.5m from the first 50% of revenue - I am not including the daily well operating and lifting costs here.

50% of revenue at 295bopd is $8850 per day. It will take block 847 days to recover its $7.5m from the first 50%.

The second 50% block splits with the govt 50/50 as this would just be pure profit oil. Blocks share here is $4425 per day.

This means that blocks initial, estimated take, will be ...at $60 urals on 295 bopd...

$8850 a day of recovery of capex and historic recovery pool.
$4425 a day of profit oil

This is $13275 per day of actual cash to block for 847 days, at $60 urals on 295bopd.

$13275 x 365/12 and then converted to GBP is £323025 per month

The actual figs will be more to block as the operating and wellhead lifting costs are not applied here.

thanks mike!

come on jrlomax - you are supposed to be invested here, this is basic stuff.

during the 50/50 phase

if you take 700bopd x $70 x 365/12 = $1.4m per month. As i expect block to initially get about 75% of all revenue, whilst the recover their upfront costs, historic recovery pool costs, then this monthly figure drops to about $1.1m per month.

jrlomax

you do not, in your wildest dreams, think for one second, that the government of georgia is going to sit back and let block energy pocket every penny from this well do you?

they expect their 60% cut and that is that, or block no longer gets to work in georgia.

jrlomax

The rns states that block has a 100% economic interest in the contractor share of the revenue from west rustavi - that is quite an important piece, as it doesn't mean they get 100% of all revenue - the key words there, are contractor share.
the psc on west rustavi is in two phases 50/50 split, then 60/40 split with the govt of georgia taking 60%.

Block can take the first 50% of revenue (that is important, as it is not the profit oil only) and recover all up front capital costs, and recovery costs, which includes the historic cost recovery pool of about $6m. The remaining 50% is then shared with the government. This effectively means that, initially block should be able to collect about 75% of the total revenue for themselves.

After all the upfront capital costs and historic recovery pool have been recovered, then only ongoing operating costs will be subtracted from the revenue, then the govt takes 60% and block gets 40%

If we ignore the initial 50/50 phase and model on the 60/40 only, then you would expect to see the following...

700bopd produced. $30 overall costs per barrel. (example cost, not actual) - operating cost would be $21000 for the day.
revenue at $65 a barrel is $45500 a day. Subtract the $21000 from $45500 and we get $24500 profit oil. Blocks profit per day would be $9880, which is 40% of the $24500.

In GBP This would be about £3m pa or £238k per month on 700bopd

please remember, my figures are for illustration only and the actual costs/profit oil may be different.

all joking aside spike - if this does hit 10p before the 31st August, then you will probably get arrested!

Well C-37 Operational Update

Zenith is pleased to confirm that C-37 well deepening operations began on July 26, 2019, as per the Company's announcement of July 18, 2019.

The Company can confirm that it has successfully retrieved well C-37's entire kill string amounting to approximately 1,000 meters of tubing.

The Company has subsequently begun the process of installing a new API standard 5,000 working pressure tubing spool complete with tubing hanger seat and a new wellhead. The Company has taken this decision in order to mitigate the risks of potential difficulties arising as a result of wellhead failures which had been encountered in previous operations.

A new BOP system, inclusive of an accumulator unit, choke manifold and remote controls will be subsequently connected as soon as the aforementioned installation is completed.

At the same time, the Company has initiated the preparation of drilling fluids in anticipation for the imminent beginning of drilling activities.

Zenith is pleased to report that no equipment failures have been registered and that all equipment associated with the BD-260 drilling rig has functioned as planned.

In addition, the Company can confirm that it has received all the necessary approvals from the local authorities for the beginning of drilling activities following a full rig inspection carried out on July 29, 2019.