RE: I’d love to love zen ,but17 Feb 2019 09:36
Whilst I am just as fed up of waiting for fresh oil to flow and the company to actually complete job, you do need to have a think about Andreas strategy, Deepsurvey.
He said recently, to a poster who spoke with him "not to get to hung up on individual wells" - what does this mean.
It means that some wells will turn out to be no good and abandoned, some will start to increase water cut and will be shut off, others will be prepared and got to a state where they are ready for further drilling.
So far, we do have two wells in zardab, that are at the state of around 75% completion
one well in jafarli ready for deepening, another being prepared for deepening.
a target in muradkhanli being prepared as a new well.
Other wells being worked on, to replace ESP's and marginally enhance production.
A full field analysis, shutting off a large number of unproductive wells - they have about 75 wells that can produce - these can be revisited at a later date for additional productive zones, as yet undiscovered or not produced from.
The financing position is quite clear - the company is reliant on equity raises and debt issuance to implement its plans. They are following their playbook and whilst I agree the CULN's etc are a nuisance, they probably wouldn't be there, if we had seen some successes earlier on, however, we did not, so financing is more expensive.
Even when we see decent oil flows from wells, they still need larger scale financing to get the drill rate up. That is further down the line at this time.
The talk of the rigs and the fact that they never seem to turn up, does seem a bit like Andrea is stalling for time until the BD260 arrives, however, they may simply not have the cash to make the payments on these tendered rigs etc. and deferred delivery dates intentionally.
We either keep pace, by supporting the fund raises and seeing the assets develop, albeit at Andrea Cattaneo speed, or we sell up, take the loss and move on. I have traded the lower priced stock I bought to generate some returns for myself and ultimately reduce overall cash exposure, whilst retaining the same number of shares.
We will see what transpires when the BD260 arrives and they get going with the drill bit.
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