Member Info for SEA7

yep - he is taking a bit much in my opinion - I wonder how many emails he has had about it.

In other words Andrea is salting away about £350k a year, plus shares and some benefits. The EMTN premium maybe a one off though.

Andrea pay..

annual consulting fee (his salary) - CAD$366K - swapped for shares. He also gets some benefits - not known.
bonus compensation from parent company - CAD$200K
Subsidiary undertakings - CAD$101K

He therefore takes CAD$388K in shares and CAD$301k in cash.
The CAD$462K is in relation to stock options granted in the year ended 31st March 2019

He also got CAD$34K as a director fee compensation, CAD$59K for guarantee remuneration and CAD$174k as a mangement fee premium for EMTN issue - the oslo bourse notes, etc. Making a cash total of CAD568K, as well as the shares.

from a revenue perspective, there was a 36% increase in the Azerbaijan segment revenue to march 31st 2019, against 2018.
the segment loss for azer was CAD$2,090,000 (incl depreciation and depletion of CAD$1,857,000), this is against
the loss of CAD$3,354,000 in 2018 (incl CAD$1,636,000 of depreciation and depletion)

This is a 40% reduction in losses at the azer ops over the last year, when compared to 2018.

in case anyone thinks andrea goes it alone - from the annual information form..

Annual work programmes and budgets must be prepared for SOCAR's approval.

From the annual information form dated 2nd July 2019

Current production from the Muradkhanly and Jafarli fields is approximately 234 STB/d from 32
active wells

looks like some T20's rolled over. quite a few that stack up like that today.

Horizontal drilling – Muradkhanly Middle Eocene

The Middle Eocene system in the Muradkhanly Field has significant oil production from a faulted structural trap and in the Southeast Muradkhanly Field, but over a large area in a widespread stratigraphic-structural trap on the Southwest flank of the field, only scattered and poor production has been achieved.

The only available modern full log suite on the Middle Eocene is on the MOC-1 well drilled in 2000. The Middle Eocene is a predominantly elastic unit of interbedded sands and shale of which 110 metres was penetrated by Well MOC-1. At the base of the logged interval are three predominately limestone zones, which as clearly identified on the PE curve. They are 8-10 metres in thickness and the two lower zones show significant porosity development as seen particularly on the density
curve. The upper limestone unit does not have this same porosity development. Both wells show indications of the presence of hydrocarbons in the lower interval and Well 25 produced small volumes of oil.

In well MOC-1 the two lower limestone tones indicate a total net pay of 14.8 metres and average porosity over the pay zone of 11% and average water saturation bf 32%. Since these are satisfactory reservoir parameters for a carbonate reservoir zone, the poor productivity of the Middle Eocene on the Muradkhanly field may well be due low permeability of the carbonate rock within this zone. The poor performance of the scattered Wells on the Southwest flank, when compared to the better wells in the fault block from the same horizon, suggests that the Middle Eocene on the flank would be an ideal candidate for a horizontal well development programme. There may be a number of explanations as to the poorer productivity, such as drilling fluid damage, but the most likely cause is low permeability in this expansive portion of the reservoir.

Horizontal well developments are conventionally applied to many different types of reservoirs, where vertical production rates are marginal or sub-commercial, resulting in significant new production and reserves all around the world. The technology in North America is advancing rapidly, resulting in better results and lower cast as time progresses. Typically, wells can be expected to have productivities ranging from 3 to 5 times that of a vertical well in the same reservoir. Chapman
Engineering believes that implementing this horizontal programme will result in a major increase in production and reserves for the REDPSA.

Conventionally, the first well in the programme would be drilled vertically to capture as much
technical reservoir information as possible, including cores and a modern suite of open-hole logs. Once the reservoir rock and fluids are well understood the drilling and completion programme can be designed to minimize reservoir damage and maximize the well results.

Vertical development drilling- Muradkhanly and Jafarli

Additional drilling locations have been identified in the Muradkhanly and Jafarli fields, on locations adjacent to existing producing wells, which show the potential for unrecovered oil. These locations have been identified after careful consideration of recoveries to date and correlations of recovery factors with associated drainage areas of existing wells. It is believed that the water production from existing wells, especially in the volcanic reservoirs, is a result of localized premature coning at the near well bore, which would leave un-drained oil at locations between withdraw.al points in the reservoir. Based on all the data examined, it has been concluded that the likely effective drainage area for most wells would be 40 acres. Therefore, all the areas overlying the reservoirs outside of each existing wells' 40-acre drainage area have been
identified as a potential development drilling opportunity, The drilling programme will be undertaken with caution, as there will be a learning curve from each new experience. Wells will be logged open hole with a carefully designed programme. Current water contacts will be detected from the well fogs, which may lead to altered plans.

A detailed geological model Is being developed based on. digital Jog analysis on many of the existing wells, which will result in an enhanced understanding of the reservoirs and provide more control over future drilling locations.
Digital log analysis has already been performed on selected wells across the fields in order to establish a feel for the quality of the results that can be obtained from these older GIS logs available on most wells. One example of the benefit of the detailed log analysis was observed on well M58, where several potential hydrocarbons bearing uphole zones were identified. These zones will be examined during the future drilling operation and could result in major new uphole plays throughout these fields

from a recent filing...

"Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is
likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

It should be remembered that we do have nearly 4m barrels in the proved reserved category and about 26m in the probable category.

1p of 4m and 2p of 26m gives us the 30m reserves in azerbaijan, with nothing for zardab.

For comparison - bloe has 16.3 mbbls across its operations in the 2p category. Zen has larger proven reserves.
If zen can deliver some proof of concept, then we will see the stock price begin to realistically value 4m barrels in the P90 or 1p category.

optimistic with the new strategy..

Zenith has recently acquired a modern drilling rig capable of drilling down up to 4,500m to carry out
the fifteen-year drilling programme. The Company plans to start its drilling programme by deepening
two existing wells in the Jafarli Field and drilling one new well in the Muradkhanli Filed by the close
of 2019.

The Company intends to drill three to four wells during the course of 2020.

Zenith intends to acquire an additional 2,000 hp drilling rig by the end of 2020, to ensure that the
aim of drilling nine wells during 2021 and up to 10 wells per year up to 2035 can be achieved - which would be that BQ500 rig.

annual accounts just published - no other price sensitive information should be known. The fact that Andrea has sold some stock, should indicate that nothing is unknown and that all is proceeding according to plan.

He has sold stock and recycled it straight back into the company by exercising options. It provides some additional liquidity and Andrea is third party guarantor for some loans etc...

During the year ended March 31, 2019, Mr. Cattaneo granted some guarantees (the "Guarantees") in favor of the Zenith for a total amount of £1,901k - as listed below:

I. Surety guarantee provided in favor of a Chinese lender for the outstanding amount of USD 1,485k;

II. Surety guarantee provided on January 18, 2018, by cheque drawn on Banca Passadore & C. n. 7001108545-02, in favor of SMAPE S.R.L for the total amount of USD 279k;

III. Surety guarantee provided on April 3, 2018, for the total amount of GPB 237.5k represented by a financial collateral of no. 3,571,429.00 shares of the price at GBP 0,065 per each (as of May 3, 2018, quote);

IV. Surety guarantee provided on July 5, 2018, for the total amount of GPB 310k represented by a financial collateral of no. 5,000,000 shares of the price at GBP 0,062 per each (as of May 11, 2018, quote).

anyhow - the whole 25 year development plan is expected to cost zenith USD599M - so, buying up a rig now and a load of kit and seemingly getting a bit of a debt load, is merely the preparatory work. The workovers were supposed to cover day to day costs and provide some cash to finance the first few drill.

Zen has a long road ahead if it stays the course for 25 years.

There was the swiss loan of CAD$1.3M which is also in the current liabilities and was due for payment yesterday - not sure if it got paid or not.

I am not so concerned about the USD loan as much as I am about the CAD$8.1m negative working capital position.
Which is CAD$2m higher than last year. Now you know why stuff seems to take so long - to arrive or be delivered.

That USD loan, also has CAD$733k of accrued interest in the trade payable figure.

cash balance of cad$3m not eight - need an edit button on this site.

mls,

Andrea has personally guaranteed it, so he is on the hook for that.

The company has about cad$8m in cash and whilst the trade payables accounts for that cash and some, Andrea is hoping for the drill bit to deliver.

Andrea has a large amount attributable to share based payments, although the other benefits, I am not sure of.

having the stock listed across three exchanges, can create an arbitrage opportunity, if you are able to play it. The shares trade independently of each other on all the exchanges, however, the number in issue is the same. This whole exercise is designed to make the shares more widely available, to more investors and traders.

The share originally listed on the tsx, which was about 64m shares, which were then listed onto the lse main market, along with the placing shares and manager shares. This meant that all shares listed in london are dual listed on the TSX - and trade independently of each other.

AC then applied to have the shares listed on the OSLO bourse as well and issued some placement shares. These placement shares do not trade on the LSE main market and Andrea indicated that an application for these to be listed would take place within 12 months of issuing the oslo placement shares. That means, before Nov 2019.

This difference was about 20m shares, however, this has increased, due to the recent canadian financing that took place.

The company must complete the application to list the shares, that are not currently listed in london, within 12 months of issuing them.

This process will simply mean that all zeniths stock will be tradeable across three exchanges. - The only concern is that, when Andrea gets this done, what capital raising will he sneak in with it.

this extract refers, regarding the prospectus...This may include information regarding any transaction, or other relevant matter relating to the Company at the time of publication, which the Company may deem necessary to disclose at such time.

The number of shares we have in issue will stay the same, the only change should be that the figure shown for shares listed in london, will match that shown for the tsx and oslo bourse. Subject to any capital raisings at the time.

hope that makes sense