Member Info for ZENGAS

' In terms of the geographics, the market trends show that award monetization is all over the globe and award holders often make the commercial decision of selling their awards because of the uncertainty and risk that they represent taking on enforcement themselves.

The possibility of immediate payment, which although less than the award value, guarantees prompt collection while passing the risk of potential appeals and lengthy enforcement proceedings on to someone else, usually experts in an enforcement proceeding against the state. '

https://opendearbitraje.com/2021/01/28/mesa-allen-overy-acquisition-of-awards-market-trends-and-challenges/

Provided we win the compensation claim and If we can't recover it within a reasonable time frame, there's a significant market for buying and selling arbitration awards.

Our claim is substantial and even a 25-33% award is very saleable upfront for payment. This would imo be a sovereign award against a government.

Elliot Capital sized an Argentine warship with 200 sailors in Ghana to collect a debt.

https://www.washingtonpost.com/news/business/wp/2016/03/29/how-one-hedge-fund-made-2-billion-from-argentinas-economic-collapse/

A really interesting outlook on how its done -https://thehedgefundjournal.com/sovereign-awards-untapped-yield-for-the-intrepid-investor/

Yes and neither does Conrad Asia have the development funds for Duyung (215 bcf 2C net) needs $300m gross.

Doesn't have exploration funds/farmout for it's 11 TCF net and 161 Bcf 2C (on over 30 individual drill prospects make up that 11 Tcf) in Aceh.

Valuation A:90c and m/cap £54m down from £100m on funding delay.

as a few have posted, be careful what you wish for in wanting a new ceo depending on whether the share price opens up or down on relist.

yes the share price has been absolutely dissapointing but a few things to consider and no one as dissapointed as that than myself.

since end 2022 almost 2 years ago, we would have been in a much better place by now.

we'd have been getting $450m annual revenue from exxon chad/cameroon on top of the near $300m from nigeria and our share price imo would have been above 60p by now with lower net debt and i'm in no doubt the initial $10m dividend would have been paid last year. that's why our icc compensation claim is so high for the damage it has done to us.

the chad issue imo can't be laid at the ceos door. these guys are building the company and i'm sure he and the rest of them want to see much more than 26.5p where the new chairman bought in.

let's wait and see and hope that the major $1.22 billion (67p/share) claim even at 25-33% success brings us back to where we would and should have been. the deal was reported as done in compliance with all law so hopefully we are in the right given our advisors and legal experts.

trustilie posts shows whats going on in the background re wind/solar as a seperate arm for growth and ambition and no one sitting doing nothing in trying to grow the company.

because the biggest deal (s.sudan) is still iffy does that warrant needing a new ceo ?

sipec on a smaller scale due to compete albeit will increase our revenue by about $100m within 12 months.

we negotiated a deal that brings us $16m income verus barely $1m investment at fenikso.

there will be other deals.

yes abo****ely agree the share price is in a sh#t state but i don't blame the ceo for that given the chad issue and then a step up with the next major deal for the next stage of growth which takes time and patience whether to be rewarded with success or failure at deal conclusion.

will a new ceo with a lot less skin in the game have the ambition or just run the company as is or leave it stagnating for 2-3 years and perhaps we lose key people as well that can run fields and assets ?.

while seplat have paid dividends it's only in the last year they've got close to their 214p ipo price 10 years ago (might want to look at the infighting over the years/ceo ordered to leave the country/court cases). but for the actions of chad we'd have been much higher by now of that i'm convinced.

there was a scramble to bring in a new tullow ceo 5 years ago. they got a new one in april 2020. the share price is absolutely no better over 4 years later and a failed takeover of another oil co. think about what you wish for imo.

Just to correct on Seplat - over 2.5 years trying to finally conclude the Exxon deal in Nigeria at the Paris ICC.

That shold have read Zenith as to the ICC in Paris.

I wonder what the status is on these companies which look to be one and the same as the websites are identical.

They're on block 3 & 7.

https://trioceanenergy.com/south-sudan/

https://www.mogenergy.com/south-sudan/

Tier

"I don't understand why some of you feel so positive that we will get this deal"

I certainly don't read that there's too many positive since last week. We know it's in the balance and that's as far as what we can go on for now.

As for the CEO letting us down, these deals are no different to what other companies have gone through, winning some, losing some and others that are spending a lot longer trying to get deals through. As with every deal the risks were highlighted on either completion being achieved or until the deals failed to complete and not proceeding. No ones knows what going to rear it's head at any time during negotiations.

I doubt it would be any different under any other CEO.

Look around you for the mumber of other arbitration issues in other parts of Africa.

8/8/24 Orca $1.2b if the Tanazanians don't play ball. https://globalarbitrationreview.com/article/natural-gas-investor-threatens-tanzania

Zenith in Congo and Tunisia.

I highlighted a few days ago the Ghana government refusing for a long time in approving the Oxy/Kosmos deal that finally took over 2 years.

Exxon was trying to exit Zafiro in Eq Guinea for a few years and couldn't get approval to sell to anyone with finally the govt taking over.

Sundance Resources just recently got an undisclosed settlement from Rep of Congo and still pursuing Cameroon at IIC Paris for circa $5.5b.

We saw Maurel & Proms deal for Assala in Gabon last year eventually going to the government.

Maurel & Prom were also refused in taking over Wentworth Resources in Tanzania since reversed.

Seplat over 2.5 years trying to finally conclude the Exxon deal in Nigeria at the Paris ICC.

Some of these deals we were in for, other competitors that were in for them didn't even make it to preferred bidder status where we did.

Did all those CEOs let their shareholders down? What about some of the international oil companies that were forced out - ie Chevron from Chad only to return a few years later, some chinese Cos eslewhere.

Should we get rid of all CEOs ? Should we get rid of the CEOs whose share prices have significantly stalled and reversed by not seeing the writing on the wall in the North Sea. If ever there was daylight robbery against shareholders, it's the so called democratic government in the UK that basically pilfer willy nilly at will from operators and shareholders.

Do we forget the deals we have done ? We'll soon know in Paris if we were right or wrong on Chad whether we get recompense or not.

I'm wondering if Saves alternative proposal is something that actually involves the government such as Nilepet and similar to this Kosmos proposal that went on for way over 2 years that started in 2019 and never gained full approval until later in 2022.?

" 24/9/21 Occidental Petroleum's planned sale of its Ghanaian offshore assets to Kosmos Energy is one of the most secret ever seen on the African continent and also promises to be one of the most significant deals concluded in recent years. Nothing has come out about the negotiations as the two American firms have decided not to talk publicly about their negotiations until the government has approved the deal. No advisory bank has been hired. The stakes are high. The deal concerns a 24% stake in the Jubilee field and a 17% interest in the TEN fields, Tweneboa, Enyenra and Ntomme, all of which used to be owned by Anadarko prior to its takeover by Oxy in 2019. Kosmos and Oxy agreed on a price, which has not been divulged, several months ago but the Ghanaian government is reluctant to give its approval, dragging the talks out in the hope that it can raise additional tax revenues and other advantages from the operation. 

The new offer

Having understood that Ghana was looking to take maximum advantage of the deal, Kosmos recently decided to take action. In a letter dated 15 September from Kosmos Energy vice president Joe K. Mensah to energy minister Matthew Opoku Prempeh, which Africa Intelligence has seen, the company has proposed that a 7% stake in the two assets should go to the Ghanaian government through the Ghana National Petroleum Corp (GNPC), which currently has a 13.75% interest in Jubilee. If the government accepts this proposition, however, the GNPC will have to pay for it on the basis of the value of the assets fixed by the transaction. In his three-page letter, Mensah points out that the operator of the two assets, Tullow Oil, with its partners, plans to invest $4.2bn in the two projects over the next 10 years. GNPC will therefore need to come up with fresh funds to increase its stake and respond to future cash calls. 

Kosmos has gone further, however, in its efforts to win over the GNPC and the ministry. In its letter, it proposes integrating GNPC executives for training so as to boost the state-owned company's expertise in such areas as production operations managment, drilling and completion operations, subsurface development and offshore facility management. Under the terms of its proposal, twenty or so GNPC executives would work at Kosmos Energy's head office in Dallas for a renewable five-year period. " That was from AI.

Later Tullow preempted Kosmos on part of the deal.

The half year results will or should be out by end of next month.

At end 2023 we had 65 mmboe 2P reserves and 92 mmboe 2C.

Acquisition of Sipec adds 8 mmboe 2P and 37.8 mmboe 2C.

73 mmboe 2P and 129.8 mmboe 2C Net.

That would take us to over 200 mmboe 2P/2C . That's a significant amount to move to 2P.

Sipec Deal -

Sipc SPA $52m with an effective date of 1/9/23 so basically 12 months discount as of now.

Jagal SPA $7.5m payable on completion.

Total $59.5m. (There will be a further deferred $2m payable to Jagal over 8 quarters or $1m/yr for 2 years - The Fenikso loan repayment income will offset that.)

Our oil income will double on completion and within 12 months production is to rise by 135% to 4700 bopd with a further significant jump in income along the way as that target is reached.

Other catalysts are further potential gas customers and sales with the compression project completed.

Are we going to develop our Niger oil after flow tests for further income ?.

There was the potential for the 33 mmbo 2C to more than double due to communication potential from other zones at Amdigh.

Or will they exit Niger and try for a $100m+ sale when the 2C is moved to 2P ?

The thing is if we can't succeed on major oil assets, how about trying to prove up another 2-300 mmbls in Niger with or without a partner ?

We were finding oil for less than $1/b.

This still has an 80% success rate factor for the S/As at least and i could see the risk point if it was sub 20%.

Pipeline is built/operates though port closed to tankers at Cotounu to lift the oil with the border dispute between Niger/Benin awaiting to be resolved.

It's not like we haven't got major assets that could give significant returns, but Niger was put on hold to raise and spend the cash on buying later life producing assets and reserves with instant cash flow where as we could have then pursued Niger from that cash flow in part. We'd be further ahead if we had not experienced the outcome in Chad and South Sudan would now be merely a bigger bonus if it succeeded.

Definitely needs a rethink and a strategy update re Niger as it has billion bl reserve potential.

Going to be another 12 months before we know the outcome of Chad so winning a few $hundred million may be weighing on definitive plans re Niger (and of course the S.Sudan outcome) ?

Blvn

Announced this am Cancellation and exist opportunity to save costs. A lot of these companies are also too lowly valued to meet their minimum listing requirements and it's in that similar vein that i see Zenith in.

BLVN (Oil/Gas) - M/Cap £4.24m. Cash £1.5m. Shares in issue 1.9 billion. No debt. Waiting on a delayed $25m payment for project sanction sometime in the future.

'The Board has taken into consideration numerous factors, both positive and negative, and considered the interests of all Shareholders in reaching its decision. Following this review, the Board has concluded that the continued admission to trading of the Ordinary Shares on AIM is not appropriate and, accordingly, the Cancellation and Re-registration are in the best interests of the Company and its Shareholders as a whole for the reasons set out below.

Reasons for the Cancellation

Costs and regulatory burden: the considerable cost and management time and the legal and regulatory burden associated with maintaining the Company's admission to trading on AIM is, in the Board's opinion, disproportionate to the benefits of the Company's continued admission to trading on AIM,

Access to appropriate finance: Having considered a range of financing options in the lead up to the Open Offer, the Directors are of the opinion that raising further significant equity through the public market would be challenging in the short or medium term, and if it were, potentially might not be on acceptable terms for all stakeholders. The Board has concluded that as a private limited company it may have broader access to specialist investors and enhance the ability of the Company to raise the capital required to fund its overheads and support activity at Etinde for the benefit of all Shareholders.

Corporate and strategic flexibility: the Board believes that a private limited company can take and implement strategic decisions more quickly than a company which is publicly traded as a result of the more flexible regulatory regime that is applicable to a private company.

Limited liquidity in the Ordinary Shares and high share price volatility: there continues to be limited and inconsistent liquidity in the Ordinary Shares, as a result of which small trades in the Ordinary Shares can have a significant impact on price and, therefore, on the market valuation of the Company. The Board believes that this, in turn, has a materially adverse impact on the Company's ability to seek appropriate financing or realise an appropriate value for any material future transactions. '

Model form

https://cms-lawnow.com/en/ealerts/2022/03/oil-gas-withdrawals-clean-break-or-ongoing-liability

The world markets have nothing to do with it Friday or today if that's somehow to blame. You might want to look at the accounts they released after hours last week , timelines and the condition they are in.

I've said the same last year and the year before that re performance, waste, expenditure as i say now.

The share price was consolidated from 0.375 to 3.75p late last September.

It's now fallen almost 60% since then again to 1.6p.

Keep ignoring the performance of those in charge, the sheer number of consolidations and similar dilutions and this is what you get.

Ask yourself where will it be in another 12 months with them having at their disposal to issue unlimited shares.

Now reduced to the family silver going (Rig).

Borrowing more at increased costs just to payback that which can't be repaid.

Miniscule mom and pop type royalty interest. I said before PIs would be safer buying into a fund that specialises in these rather than Zenith reduced to this with it's overheads and listing here, Norway and the US. If the 5% royalty interest in 7 wells was of remote value they'd have been singing from the rafters just as they did with the gas/electricity revenue which itself abruptly ended after a few months that couldn't last.

Italian production fell 10% last year (that's nothing to do with world markets). How is it faring now - will it fall a further percentage this year putting more strain on income? never mind Gas/Electricity prices which i had warned were also substantially dropping (when others were posting these would rake in massive profits that the company was happy to highlight for a few months until they dropped off a cliff again).

If i recall, i beleive their Italian drilling might yield some 9 boepd which the others are not taking part in.

75% of Directors wages should stop, travel should stop, excessive unexplained consulting should stop.

There's only a few people have done well out of this company over the many years and it's not benefitted shareholders.

Anywhere else on performance like this for 15 odd years and management would be booted out.

It would not suprise me to see it wound down/delist and any remaining cash used to pay off debt and distribute to any shareholders whats left.

It is beyond unreasonable AJ especially as 2/3rds of that was consumed in the last 3 years not counting the other expenses.

Whether it's $200k OR $200Kcdn - that's all they had in the bank end of March.

Why do they not say how much the revenue or value attributed to the royalty interest obtained at auction is - imo because it is ridiculously small versus the amount of capital wasted. Do shareholders not deserve to know ?

Nor did they update on the Kazak plans on Devonian Petroleum since Dec 2023 and the rig was to be transported there.

Now simply told that the rig is being sold.

People need to stop making excuses for the dismal performance and shocking waste of cash that could have been actually used to buy meaningful assets.

The rig sale will imo see any cash consumed by debt servicing given the timeline for any potential awards not withstanding the potential for delays, further dispute or appeals.

I posted this a year ago when the 2023 accounts came out

The Consultancy fees and travel expenses in the last 6 years are absolutely horrendous totalling over $16m alone. Both these items are excessive for such a small company and which is now working on securing a few hundred bopd in the US. This doesn't take into account salaries, admin etc.

Consultancy fees yr end 31st March

2023 $6.658m

2022 $3.028m

2021 $611k

2020 $629k

2019 $1.021m

2018 $1.135m

Total last 6 years $13m.

Travel for the same periods

2023 $762k = $14,600 per week.

2022 $617k = $11,865 per week.

2021 $206k = $3,600 per week.

2020 $425k = $8,170 per week.

2019 $567k = $10,900 per week.

2018 $548k = $10,538 per week.

Total last 6 years = $3.125m

----------------

Now add in year end 31st March 2024.

Consultancy fees $4.953m and Travel $751k.

Brings the total for the last 7 years to $18m for consultancy fees and almost $3.9m for travel.

Almost $22m and nobody raises an eyebrow on those eye watering amounts.

Won't scare anyone with the interest payments in the same time.

No nomad because they're not on AIM which would have been more accountable imo had it been so.

Absolutely shameful.

1) The interest costs for 12 months to end of March 2024 was $5m.

2) Listing costs for the 2 markets UK & Norway $570k.

3) How did they manage to blow $1.566m negotiation costs for acquisitions (to who actually ?) and end up with just a royalty interest bid at auction instead.

4) Another $4.953m spent on consultancy fees. Incredible ! Consulting on what ???

5) Travel again a whopping $751k compared to $762k a year earlier. How the heck are they managing to spend the equivalent of $62,500 every month or almost $14,500/week ?

6) Arbitration costs $1.658m.

Above is absoluely shameful.

$200k left in the bank 4 months ago .

Revenue is just $1.7m/year which costs $1.085m to produce which leaves a margin of $700k. But you then have $1.7m for salaries and $650k for office on top of other admin.

Has an absolute mountain of debt. Kept going by further borrowing at a much higher interest rate to settle the previous term. Now the finance expense will have risen as a result of the higher rate.

"The Company started negotiations to sell its Drilling Rig ZEN-260 in April 2024, that will most likely be finalized within the next 12 months". - They expect $5.2m net after commission fees when sold. So in all that time they didn't bother to update on the Kazahkstan acquistion where they had planned to move the rig.

If you only count the salaries, previous lower interst rate payments and listing costs above = $7.2m - imo they are running at a loss of $600k/month so from 1st April will have pro rata consumed over $2m of loss funded by debt by today and ongoing.

Heaven forbid more arbitration costs up front or more ridiculous consultancy fees ?

Expecting significant dilution through share issues to say afloat. Wouldn't surprise me if delisting is a possibility due to the state they are in to save cash.

Absolutely mad imo.

$200k cash end of March.

The rig is now up for sale.

Incredulousy they haven’t said what the US royalty interest brings in or what it’s worth.

Clearly stating that there will be more dilution if they can’t get debt which they are already swimming in along with high interest payments.

Italian gas production down 10% since a year previous and revenue fell off a Cliff with lower prices for gas and electricity to an average of $130k per month.

Dire.

Expecting it to do well on other assets over and above 2A Deeko. I'm not a chartist but klooking at it you'd think it was poised for a breakout at this low m/cap.

Not that long ago people were saying Exxon and Shell would be their partners ?

Why ?

Again do you destroy fair process when you start giving away blocks (with very limited data flip sake just a paltry 448 KM lines of 2D. Think about it . )

What will other companies say, what will the industry say ? about a fair process which could ultimately damage sentiment/investment to Sarawak with government doing side deals outside of an open process ? This would even preclude other possible Sarawakian companies from getting a fair crack.

That's a big headache for government.

How do you prove your getting best investment value ? Best return for your people outside of a fair bidding process where all potential investors as Petros the government body says ?

Fact is they aren't precluding UPL from that process.

The issue is UPL trying to have exclusivity over and above others and no bidding process.

The Government isn't cash strapped, it gets significant involvement in assets all the time. It could get more value for the PSC in the medium term by waiting a year as indicated. The government imo has to follow some standard model of PSC bids/awards or else its a mess. That's why it should and 'imo' will likely follow the similar bid process for the 3 CS blocks announced 2 days ago with awards in April 2025.

If so, SK334 award April 2026 on that basis is likely. Seriously why would the process if started later in 2025 be any different with an award any sooner.

I said this yesterday morning

'Despite saying they are in communication with the state government, the Govt hasn't told them anything new or they'd quote it.

All they've been able to do is quote a 9 month old government statement about 2025 drilling.

UPL then refer to the JTS and state that they have unique advantages over other potential bidders in a competitive bidding process.

UPL now acknowledge the bidding process that Petros have mentioned. Petros stated as later in 2025 and if on the same timelines as the others announced yesterday, it would indicate no decision until April 2026.

Debatable how UPL can determine that they have unique competitive advantages in a bidding process when they don't know who or what companies are also talking to the government and their own individual firepower. My assumption is they would say this to try and calm investors but it's meaningless (imo).

UPL may be ready to commence but thats the government decision now some 8 months after the JTS was submitted and there is absolutely nothing quoted from either the Government or Petros today in that RNS.

UPL have identified 'potential' partners for operatorship ? Surely these 'potential' partners that would like operatorship could just as easily be interested in the bid process as perhaps others may who won't be talking to UPL.

Nothing new that isn't known except they now acknowledge a bidding process that Petros have stated.

Looking forward to meeting shareholders at the agm, well they can't say anything else other than that. But once it's over, i expect it to be a drawn out waiting game with no one having to face shareholders for another year.

I could be wrong and it's only an opinion but i beleive they'll be caught up in a competitive bid process which they have acknowledged as out there.

See what others make of it in the coming weeks but i expect there's buying by some thinking its still a done deal and a combination of a lot of shorts closing to give it the bounce back this morning.'

A d what do you think the Oil/Gas blocks in a fir bidduing process will be when they come up later in 2025.

They will follow a similar timescale for data review, evaluation, thenenter the bid by a proscribed deadline.

Followed by Bid evalaution.

Followed by award.

Don't forever be an idiot all your days on how professional processes work.