Member Info for SEA7

I agree with that sentiment zeb.

The only thing going in zeniths favour is that numerous operators have worked these fields since the soviet times and most have not succeeded. This is the reason that zenith have these fields. They are complex, geologically and SOCAR have been paying them lip service over the last 15 or so years, due to the offshore focus.

No one really wanted the fields and Andrea didn't have to put a penny up front for them. Socar are more than likely to let the requirement slip, as they see work being done on the fields. Although it is a pretty low target and Andrea has failed miserably over the last three years.

The Group is required to increase production levels from the 2015 average daily production of approximately 310 STB per day by 1.5 times, that is 465 STB per day, for a period of 90 consecutive days before the deadline elapses. Failure to meet the required production levels would result in a material breach of the REDPSA and may result in termination which could lead to loss of title to the Azerbaijani oil and gas asset, as well as non-recovery of the costs incurred by the Group with respect to the contract area since inception. The Group is currently operating at an average of 238 STB per day (2018: 270 STB per day) and therefore has not yet reached the required production volumes. The production deadline is just over 3 months away which means that production must reach or exceed 465 STB on or before 12 July 2019 for 90 consecutive days in order to satisfy the obligation.

The Directors believe that the planned drilling activities with the assistance of the newly refurbished drilling rig in the near-term will allow the Group to reach the aforementioned production levels to meet its REDPSA obligations. The Directors also believe that should the obligation within the REDPSA not be achieved within the aforementioned timescale, SOCAR would not exercise its right to take ownership of the project, which is based the on Directors operational experience and supported by research undertaken by the Group into similar Companies who have breached similar REDPSA terms with SOCAR.

from latest md and a published late june 2019

I am always seen when the share price drops, so for a bit of balance and positivity...

Combination of the current 2p reserves NPV10 and cash in hand, gives a value of £39 m for the company (hence my 10p-11p range call at 700bopd production). Nothing factored in for the 608bcf gas though.

In that interview Paul refers to the impact on neighbouring acreage and the desire to move quickly to raise cash, especially when considering acquisitions. They are aiming to be the largest independent oiler in georgia.

You will recall that Block VIII was an initial target of Goldcrest resources as well as the Norio asset, before the company changed names to Block energy, with Paul Haywood involved with both entities...

from the listing doc (Block energy)...

Pursuant to the Norio SPA, the Company was granted an option (with current 100% owner GOG)
to acquire a 70% working interest in Block VIII. The option expired on 31 May 2017. However the
Directors believes the opportunity remains available for the Company to resurrect this opportunity,
although there are no current plans to do so

from the rns of goldcrest resources... 26 April 2017

Paul Haywood said....Block VIII has had over 250KM of 2d seismic acquired home to multiple Oil discoveries and is one of the largest blocks in the Republic of Georgia. Primary drill target is believed to host over 36 MMbbl of unrisked resources, with massive upside.

Is paul going after Block 8 again. - GOG were still after a partner for this block last year.

Block VIII E.Kavtiskhevi -2 has been flowing pure oil at 18 bopd for some time. There is potential to extend the Block 8 East kavtiskhevi structure, to the west (partially schlumberger block ix) which could increase the contingent resource from 36mmbbl to 100mmboe

Work program for block 8 2018/19 was about $7m and was mainly seismic acquisition.

I could be wrong, however, I reckon Paul has his eyes on this acreage again.

for the record..
My buy in price was almost hit yesterday, as I had already exited with a profit from the last trade a while back- missed the rise today as I was out till lunch and wasn't expecting the buying frenzy after the interview. Won't be at my screen again until lunchtime tomorrow - oh well.!!

Might shove an out of hours order in and see if I can catch a day trader and 10p -12p holders locking some profits pull back, before any further rises. Won't be filled at the open, though, likely to gap up after todays run. Could see a pullback around 10am -11am when the morning trading froth calms down. The price will be all over the place, though.

very true RH,

As they are implementing a new strategy from scratch, we should consign the other one to the past.

hi zeb

I have not booked any losses on this stock at all.

I exited my position back in January of 2018 when the stock was around the 9p-10p region. I made a very good return.

I bought one tranche at 7p a few months later, however, I did not buy any more until the stock halved again. I have traded the small range between 2.7p and 3.1p for some time now, as it has fluctuated between those prices for months. I have booked profits on all those trades as well.

I currently have 2/3rds of my holding purchased at 2.7p and the rest higher up. When I put the whole lot together, I have an average of just over 4.5p. Had the drill spud date been further out than it is likely to be, I would have sold again at 3.1p as it was inching back to that, booked a profit and waited for it to drop back again.

The amount of "out of the money" stock that I hold (one third of holding), has been covered by the profits from the exit in jan 2018 and the round trips done between 2.7 and 3.1p in this year. So even though my current overall position is underwater, I have covered it.

Normally I wouldn't cut my holdings up into tranches and then price point trade them, to book profits and then reopen the position when the stock lowers. AC has mismanaged this and I had to act accordingly to lower the risk profile on my exposure. The lower range trading, has brought my combined average down, the cash exposure down and is more in line with the risk I feel is appropriate for this stock.

The spud date is looming and we should see some interest here.

The only bit I am annoyed about, is the last time I sold stock that I had bought at 2.8p for 3.1p, the stock clattered up to 4p
the next day - however, I could not take advantage as the stock I had still in play was above 4p and I could not sell without booking a loss.

Still there is a risk in every strategy!

AC was overly optimistic on all fronts and at least he has calmed that down a bit. The initial strategy of working over the old soviet wells was a good one, however, Andrea appeared to have approached it with a half arsed strategy in place. He did try running it himself, relied on ropey and incomplete well data and the word of the azerbaijanis working the fields. He then got someone in with a bit of knowledge, who then left and that in my view was because of AC's shoestring approach to things and not letting go of the reigns.

He does appear to be listening to his team now and taken on board what has been said and whilst this rig is way over the top for this job, he is thinking of the bigger picture, with the drill taking on jobs more suited to its size later on. This simpler
job is more for training purposes. It was a 5bopd producer and is a good test case for the rig and the staff.

I have given the stock another chance, due to the full change in strategy and the fact that they are focusing on wells that have produced or are producing with better historic well data.

Lets see if Andrea can keep his fingers off the pulse and let the team get on with it.

Information about the Italian assets is scant beyond belief, - some investors probably think that this company only has oil and gas operations in jafarli.

yep - i bought and sold BLOE nice profit and covered the gap here. I have traded this a couple of times, although haven't sold my 2.7p stock, as there should be a decent rise on the spud rns.

I have bought this stock, as it represents a large discount to asset value and whilst the geology is complex, the oil is there, this is not wildcatting. I backed this because the market doesn't particularly like it, due to the couple of years of false starts.
The change of strategy, got me buying this again and i hold 2/3 rds of my holding here at 2.7p

Thanks Ezhik,

Yes i did get an apology - Still I have been investing in the AIM market for over 12 years and learnt early on to take notice
of the fine details or lack of them in any investment.

Some posts need nit -picking!

hi ezhik,

they did increase production by 12 bopd in the three months to end march, when compared to the three months to end december. just over 5% increase.

I notice from the oil and gas annual disclosure filing it states that the 3 months to end december was 222 bopd and 3 months to end March 2019 was 234 bopd, netback to end march was $28.38 bbl and production costs were $19.22 bbl

Hi NH,

I expect it is contentious for a dynamics nerd, however, it was mainly to drive the point that I was accused of using a water basher deramping posting by someone on here and I wanted to point out in very simple terms that it wasn't a deramp, it was a point over the way the deposit supports itself. The person insulting me had no understanding of what I was on about and simply insulted me.

They indicated it flowing in the april update, then nothing since - the may presentation made no mention of the flow at 16az, which was my point and has been validated.

AJW - do you have any idea what you are investing in?

A water driver - it is in reference to the fact that the water in the ground, will act as a natural support to the oil deposit.
As oil is drawn out topside, the space created will be filled by more oil, that is naturally being pushed into place by the water underneath.

I sometimes wonder.

thanks helpful

yes, however, this line from the rns...

We can now allow well 16aZ to flow to its full potential.

Should give rise to caution. The well tested at 1100bopd and was flowing at 700bopd, however, similar results were obtained in the ninotsminda field. They were advised to restrict flow to 500bopd, from the initial 1000bopd, to preserve well integrity over the longer term.

The full potential may mean throttling back a bit, to ensure that the well profile continues to deliver at a steady rate over a much longer timeframe. West rustavi should be a good water driver as well, so a steady natural production level over the longer term should be achievable.

Initial results of 1100bopd, followed by early production levels of 700bopd and then possible drop back to around 500bopd
over the next few months may be required to ensure the well flows to its full potential over the life of the well.

Of course the flow rate could be stable at a higher rate, the company will eventually provide steady flow rate numbers.

No offence taken, toploader !! Aim Market stocks - even the tiniest detail can be relevant in my view.

So I got so much grief on this site for saying production may not have been happening last wèek and I was right how long was it offline for where was the rns all those on here indicated would have to be announced

Still good news today

someone on this board posted their question about the 700bopd and the companies response - they dodged the question.
Company IR, Didn't even mention the fact that they could refer to the most recent update for operational information. Just talked about working hard to put the elements together.

it is noticeable by its absence and on AIM, omissions such as this should never be ignored.

The share price is down 42% since that announcement - what does that tell you, despite a £12m raising.

PH and co put together a presentation for a £12m placing and forget to put the current production of 700bpd that they had only rns'd a month earlier on it, after shouting about it from the rooftops being the biggest find in 50 years in georgia.

No, they left that off on purpose and you should be asking yourselves - why, seeing as they remembered to put the 6bopd current production from satskheni on it.