Member Info for SEA7

Excellent news - re top drive

not bad for a cashless exercise! - a loss to utilise in the tax return.

yep - andrea may be good at financial wizardry and balance sheet operations, however, I would rather see some operational excellence in play, rather than Andrea playing with his tax liabilities.

tks zeb

zenith was Canoel Energy before changing names. Its reporting jurisdiction is in British Columbia, Alberta still.

Yes - I recall reading up on the way the canadians treat options a while ago, when I saw this done once before, close to the end of the canadian tax year. I could not see what the person was trying to achieve, until I realised that the options were taxed as a gain, if you exercise at below the current price (the gap between the two prices is taxed), whether you sell or not.
The reverse applies if you exercise at a loss.

No one is ever doing the company a favour - lets face it. -

remember - zenith is incorporated in canada and as such is subject to canadian rules and not UK rules.

and conversely, if the stock rises, Andrea can still book the loss realised on the purchase date.

canadian treatment of options- very brief...

On the date that you are granted or receive stock options in an employer that is a publicly listed company, you do not have a personal tax consequence. However, on the date that you purchase the shares, you will get a taxable benefit equal to the difference between the exercise price of the shares and the market value of the shares on that date. You cannot postpone the timing of this taxable benefit.

After buying the shares, you have two choices: (A) You can immediately sell the shares or (B) You can hold onto them if you believe they will increase in value in the future. If you choose to hold onto the shares and sell them in the future for a profit, the profit made from the sale will be classified as a capital gain and subject to tax. Whether you sell the shares or hold onto them, taxes will be deducted from your paycheck to account for the taxable benefit you realized on the purchase of the shares.

However, don’t hold onto the shares for too long after purchasing them. This is because if the price of the stock drops you’re still liable for the taxable benefit realized on the purchase date.

andrea exercised on the 3rd July and again on the fourth of july. This rns today, is the exercise on the fourth.

Andrea gets plenty of stock instead of a salary. He receives a good clip of cash as well. He is simply selling some shares he got in lieu of salary, then exercising out of the money options, which on the one hand puts a few quid in the company accounts and on the other, he gets to book the paper loss on his own personal tax accounts, as the option is out of the money as at the transaction date, against the prevailing stock price.

Comparative analysis of the time structure maps for the Zardab, Muradkhanli and Jafarli oilfields indicates that all three oilfields form part of a larger, unified system with faulted anticline, which suggests the possibility of a single oil-water contact for all three fields within the Upper Cretaceous/ Lower Eocene formations.

zardab...

The best well by production tested from Lower Eocene/Upper Cretaceous zones was obtained from well Z-3. This well was drilled to a total depth of 4,300 metres and recorded an initial production rate of 420 m tons/day (3550 bopd). Z-3 was drilled on a wedge of high amplitude reflector of Lower Eocene/Upper Cretaceous age in an isolated fault block.

So, potentially a large unified system, with 3550 bopd shown in the upper cretaceous/lower eocene at z3.
C37 is drilling in to a large unexploited structure 200-250 metres deeper than the existing well into the upper cretaceous.

Could be a big find and would justify all this large kit we have.

it shouldn't be long - geolog won't want their kit sat there for ages doing nothing.

Geolog has the likes of shell, chevron, total, exxon and others as their client list.

About geolog....

“GEOLOG is consistently the best mud logging service I have worked with!”Senior Lead Drilling Superintendent, Exxon Mobil

from their website.

I note that Block energy are paying $2,055 a day for the rental of a ZJ40 and an A50 drilling rig. They have agreed to rent them for a year at $750k and fund all operating costs as well.
-
Andreas purchase of the rig here, looks like the better decision, over the longer view.

This drill will go ahead and unlike the textile industry, andrea does not have to worry about cheap competitors.
The oil market is neatly structured by the opec and non opec cartels to ensure that oil prices, more often than not, stay within a range. So Andrea can be fairly sure of a range based price for his product.

To low and oil producing nations cannot function, too high and the bigger consuming nations cannot function.

orjones - whilst you are sitting on the moral high ground, looking down at people, calling them racist, perhaps you would like to address the fact that you have referred to everyone on this board as "lads" - thats a bit sexist isn't it - assuming all of us on this board are male - an assumption of gender. not very 21st century.

needless to say, I actually lived in a gated area, with security and some of the places had those metal shutters that come down over the house windows, which are only operable from inside the house.

Had a great time over the two years though - you just had to have your wits about you and watch where you went.

Tav - comes as no surprise - doesn't matter what the name of the organisation is, dodgy employees are there.

I only dealt in cash for the whole two years - not once did I use a debit or credit card. I obtained cash from my account at the bank whenever I needed it.

Having said that, the "car park attendants" as they called themselves, near where I lived would only accept cash, when I parked up to go shopping. Of course you paid them to watch over your car and ensure it didn't get damaged - if you didn't pay, the window was usually broken when you returned and sadly they didn't see anything as they were watching the cars of those who had paid.

Cost me about a quid to ensure that my car didn't get damaged whilst shopping. Not ideal, but thats the way it is.
They were raking it in. The car park held about 50 cars and no one was there for more than 30 minutes.
No parking machine for tickets - just pay the guy!

Try complaining and see what happened. The local police would no doubt be most upset at you for wasting their time and most probably annoyed for trying to disrupt a nice earner they had going with the parking attendants.

I was taught to ensure that whenever I left the car locked, to leave the glove compartment open and empty - this ensured that thieves could see there was nothing in the glove compartment and wouldn't need to break the window to find out.

yep - nice work for andrea.

The big song and dance he did about his salary exchange for shares, just made me look closer to see how he is making money out of this.

zena drilling holds the BD260 rig - zena is a wholly owned subsidiary of zenith, however, it is registered in the UAE and Andrea is the sole named trustee of zena drilling. Andrea got CAD$101K payment last year for "subsidiary undertakings"

So zenith aran, rents out the rig from zena drilling and pays a rental to zena - Andrea is "trustee" of zena and pockets a decent clip.