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A bit of that creeping in ,I think. No significant oil produce from self drilled wells. Just one Institutional investor,(in the UK), and none in the US where there are comparatively few private investors. Lot of hints at progress in the near future but the months roll by and the SP just manages to sustain itself where it was over a year ago. Hardly heart raising stuff for the shareholders!
So far today only about 6M shares have been traded and the SP has fallen 4%. Most of the trades were just "housekeeping " trades and the relatively few apart indicate doubts sown in some minds by the inability of the sp to sail past 6p and the late inability of the BOD to produce unequivocal good news when it's been due.
The MMs have been told, (by the broker on the company's behalf), to drop the price to 10% below the placement price in preparation for a coming uplift. And it has taken the MMs a week or so to achieve that objective in view of the poor trading rhythm.
Thank you, The Chain, for a very thoughful and informative post, and I'm pleased you decided against yoour proposed contact with CH.
I wanted to add a few details that you may have already interpreted. This week we are entering week 11 of the possible 12 week timescale set by the company for the completion of the cryptomine. If that materialises then production from State 16-2 ought to begin in earnest wihin two weeks. That would cause the SP to rise dramatically,(I think).
If it were to be allied to news of the commencement of drilling at one or more of the three wells posited to be undertaken before this year end the effect could be very great indeed.
Lastly,I have lately concluded that the company will probably purchase shares in more nonop wells soon.
Thanks again for your well argued opinions. Go well.
Thanks, The Chain, and there are just a few points I'd like to raise in response :
1. Where is the "nearby" pipeline, and,if it's active why hasn't it been used to aid production from State 16-2 which is vital at this juncture? I think the reference in the 8 December is to the planned extension to the Dominion pipeline, which , by the way is completely out of Zephyr's hands.
2. Actually two institutions have "weighed in" but one withdrew, (an event never alluded to by the company). Also the company has declared State 16-2 the proof of concept, so institutions are not waitinng for them to repeat that prior to buying in. They're just not interested as of now. Also who bought the £12M of shares in the last placement. At the time the company thanked the "institutional shareholder for their suupport", but never revealed who they were. Also on this point it would certainly enliven the SP if the BOD bought some shares. They haven't done so for well over a year, and they haven't alway been in a closed periood !
3. Zephyr is a nonop oiler with no worthwhile production from the only well they have drilled to date. The newflow from the company about the timing of the upcoming wells is erratic at best. The SP in languishing in a way which would have been considered extraordinary a year ago. That's how I see it.
Thanks for your response Adon 30 but Idon't think I misread the 8 December RNS when it was issued ,or indeed more recently.. The RNS was mainly focused on what was seen as the success of State 16-2. The fact that there was the possibility of adding the gas was presented as a bonus, and no mention was made of using the sale and the disposal of that gas to facilitate ol production from the well.
In fact the RNS indicated that the gas would be sold via an,(unnamed), "nearby existing infrastructure." The pipeline alluded to was not active in the area at that time and the necessary extension work still hasn't begun. And please remember that the RNS was posted ten months ago and we still haven't had,(nor are we sure when we will have ), any significant production from a well which was drilled over a year ago.
Zephyr remains a nonop oiler and for all the speculation we don't know when that will change.And the lack of interest fron institutional investors and substantial private investors and the depressed SP betrays unease about all that.
A lot of good sense in what Srdoddy says. a RNS on 8 December 2021 indicated that State 16-2 had the potential to produce 2100boepd.. It made no mention of the necessity for a pipelline to obviate the need for flaring before any significant production could begin.
On the 26 January of this year another RNS indicated the raising of the circa £36M for the Williston nonop purchase.Was that a change of strategy given that the company had spent most of November/December on a fund raising which clearly was unsuccessful,(the first misstep by what looked like a brilliant BOD).
If a gas pipeline was known to be a necessity before State 16-2 couuld be put into production why didn't the company say so at the time of the 8 December 2021 RNSI? I tend to agree with Srdoddy that the lack of more than one II (in the UK and none in the US), is directly related to the ongoing nonop status of the company. There is a lack of clarity related to the company which has been,(and still is), very disappointing.
From Evan3020 ( last qtr production down), to Chain asserting that flaring is not being carried out on 16-2 solely o fulfil the company's environmental stance. The latter is only partly true. Fact is that only very limited flaring is permitted be carried out and for the gain it is probably not considered worthwhile.
My own view is one of disappointment that the company didn't level with shareholders long ago about the effective inability to produce from 16-2 thus turning the company into a nonop oiler and using shareh0lder funds to do so, Them's the facts!
Zephyr is a non operating oiler from bought in shares in wells paid for,(one way or another), by the shareholders. It has produced little or nothing from the well it drilled by itself,(State 16-2).Until it does produce from at least one self operated well the sp will remain in the doldrums.
1. State 16-2 was completed over six months ago and the company spoke frequently about producing oil for sale when the "infrastructure" was complete. They didn't mention that the said infrastructure was a pipeline to obviate the need to flare the gas from the well. Nor did they tell us that without such a pipeline ,(let's forget crypto for now, aithough that wasn't mentioned either), no significant oil could be produced from the well. Mention of the Dominion pipeline,( over which Zephyr has only limited control ref the completion date), was only mentioned relatively recently. Allthat,(in my opinion), was being less than open with investors.
Secondly, the stock is extremely illiquid and that was something CH acknowledged and that he promised to address about eight months ago. His only action has been to recruit Auctus which has, so far, achieved nothing.
CH has spoken about the importance of institutional investors and US investors. Zephyr has one UK institutional investor and few or no US investors.
Point being that there are a few important matters to attend to here. A few million shares traded daily isn't very encouraging. Is It?
Thanks Islandgirl, that's cleared up my misaprehension.
By the way daily production at BP is 3.7MBOE per day from reserves of around 20 Billion barrels. So I don't imagine they're in desperate need of the Zephyr 1600 barrels per day.
Thebhoys, it's news to me that BP have bought 50% of the " Williston " production. Zephyr only hold abour 20% of all production from Williston,(don't hold me to that percentage), and they would have no right to dictate who purchases the rest. Also as a diminishing entity it may not be attractive anyway. But I'd be glad if you'd let me know the source for the assertion.I'm not being argumentative, just seeking clarity. Go well.
But I haven't changed my mind on the buyout possibility. I wish there might be one because it would yield an absolute fortune for me. But I think I'll just have to take the nice profits I'd get from good news! And a decent SP rise!!
Hi Chain, my opinion isn't really negative. It's just realistic. And far be it from me to be naming companies which may be takeover worthy. By the way, there are a large number of "ifs" in your reply. Remember that ZPHR finished the positive drilling of 16-2 over a year ago and it still hasn't produced any worthwhile quantity of oil. And the oil being produced by ZPHR has been bought in with shareholder money. And the sp now is lower than it was a year ago! And we've had less than 2m shares traded today in a 1.6B share company. And punters are talking about a buyout. It's just not common sense !
Highly unlikely! It's far too small and even if the upcoming three wells are a succcess plus the ten posited for next year Zephyr will only be a medium size player in its potential. All the talk about a buyout is the stuff of a pipe dream. BP or any other major can get this kind of potential any day.
What we need from ZPHR is real production from the well it has drilled so far. That might shift the SP. Auctus never will!
Hi Chain, less than 2m shares dealt in a 1.6B shares company shows neither appetite nor share building. 60 or 70 million dealt might indicate something happening but no sign of anything like that yet. Just to note how brilliant Auctus has been . NOT !!!!