Rob-1 workover value to zenith exciting times

TheLondonOiler
ZENA 21.10.2021 kl 11:49 13094

I personally see the value bigger than we think. With a ramp in production in Tunisia alone we should be sitting at double where we are now, with a Tilapia sealed and delivered update multiples, very excited to be a Zenith investor
jantt
29.10.2021 kl 15:10 2858

Hvordan fanden kan kursen gå i minus på denne melding ?
Hektor
29.10.2021 kl 15:16 2833

Ja, her er det bare å laste opp. Tydeligvis en som selger mye på 0,1300. Jeg er nå godt innenfor topp50 👍
MarketGunsling
29.10.2021 kl 15:42 2763

Acquisition dates of Tunisian Assets

20th April 2020 – Sidi El Kilani – 22.5% bought from KUFPEC for US$500,000
8th September 2020 – Sidi El Kilani – 22.5% bought from KUFPEC for US$300,000
24th March 2021 - Ezzaouia – purchased for $250,000 (plus a royalty of $50,000 per annum for 10 years). First announced on March 15th 2021 and completed on March 24th.
30th April 2021 – El Bibane and Robbanna - $100 plus assumption of $200,000 debt


Production from Tunisian assets

Sidi El Kilani – according to the Etap figures Sidi ElKilani produced an average of 502 barrels per day between January and September 2021 meaning that Zenith’s 45% share was worth 225bopd.
Ezzaouia – produced an average of 465 barrels per day between January and September 2021 meaning that Zenith’s 45% share was worth 209bopd.
El Bibane – is (according to the company RNS of 30th April 2021) producing 100bopd from EBB-5.
Robbanna – is according to today’s RNS producing 124bopd from the newly worked-over ROB-1.
This gives us production figures of 658bopd which matches the 650bopd (approx.) that was announced in today’s RNS.

Value of current production

With the oil price today at $84/b then assuming that with the assumed opex cost of $23 per barrel then we are making $61 per barrel which at the current production levels of 658bopd gives a net revenue of $40,000 per day or $14.5 million per annum. This is a very significant income that allows the company to show a substantial profit and, more importantly, to service significant debt which can be used alongside or (hopefully) instead of any equity raisings to allow the company to drill additional wells in Tunisa.


Future potential production

There Is obviously substantial future production that can be pulled out of our Tunisian assets.
1) We have additional workovers and wells that can be drilled at Ezzaouia
2) We know that only 5-10% of the oil at Robbanna has been recovered so there is definitely a multi-well drilling campaign that can be carried out there.
3) We know that El-Bibane was once producing at 4,500bopd and that EBB-3 was still producing at 600bopd when it was shut in so there appears to be a lot that can be done here also.
However, aside from the fact that we know that something can be done with each of our Tunisian assets in general, we do also have information on the specific plans that the company have for Robanna and El Bibane (which it is important to note are the ones that we wholly own).

The company intends to drill ROB-3 (an infill vertical well) next as per the RNS today. This is budgeted to cost $1,500,000 and to be targeting production of between 150-200 bopd. Hopefully, with the lessons learned from the successful workover of ROB-1 this will be more like the 200bopd or even more.

After ROB-3 is done then we also have details on the well intervention on the shut-in well at El Bibane EBB-3. This company have announced that they have been given a price for this intervention of $3.5 million and, if it is successful, then they would expect it to produce an additional 500bopd.


Budgeting

So, so far the company have spent $1.3 million on the acquisition of our Tunisian assets and we have spent $350,000 on the ROB-1 workover. In total this means that we have spent $1,650,000 to acquire production of 658bopd which will deliver a net revenue of $14.5 million per annum.

We are also looking at spending a further $5,000,000 to target additional production of 700bopd which at the same oil price and opex costs would deliver another $15.5 million net revenue per annum.

In total this would then give us $30 million net revenue per annum from Tunisia alone, which is about £22 million sterling. Considering that the company market cap is currently only £17 million then this would make Zenith both very cash rich and incredibly undervalued. It would also give the company all of the funds that it needs to carry out the exploration and development work in the Congo and in Nigeria assuming that we exercise our option to acquire OML141. And we will have done all of this and generated all of this income If this is successful then it would mean that we had spent $6,650,000 for 1,358bopd production and an ongoing revenue or $30 million per annum.


What the company has done in Tunisia already (and plans to do in the forthcoming 6 moths) is incredible and it is hugely infuriating that the market has not caught up with this yet. However, we all know that the re-rate is coming and when it does arrive it is going to be huge. After all, the company is today generating £11 million sterling in income (assuming that the SLK deals do ultimately get approved) and how many other small cap oilers are doing this? Very very few.


Obviously, the share price reaction to today’s news has been a little disappointing but this is just a temporary. By the end of the year this share is only going one way.


GLALTH

TheLondonOiler
29.10.2021 kl 15:48 2742

Great summary this is a buying opportunity market will react accordingly. Figures look very healthy for the future.
jantt
29.10.2021 kl 16:06 2685

Nu håber jeg at det ikke går helt galt med kursen.
Aldrig har jeg sat så mange penge på en aktie.
Herbius
29.10.2021 kl 19:13 2511

Nice Work MG 👍👍

Do not forget The 6 mio $ in Congo, and 3,2 mio $ in Court 👍😃


SNPC owes AAOG Congo approximately US$5.3 million. Zenith has met with SNPC and expects to obtain the full repayment of the aforementioned amount.
The seller of AAOG Congo has also novated 100% of the intercompany loans with AAOG Congo to Zenith as of the date of Completion, equivalent to approximately £12.5 million.
Redigert 29.10.2021 kl 19:17 Du må logge inn for å svare
TheLondonOiler
01.11.2021 kl 11:39 1994

Congo will be the multi-bagger when that comes in should be the rocket.
C-Eiken
31.05.2022 kl 12:07 1415

Update on workover of ROB-1

May 31, 2022

ZENITH ENERGY LTD.

("Zenith" or the "Company")

Update on workover of ROB-1

Zenith Energy Ltd. ("Zenith" or the "Company") (LSE: ZEN; OSE: ZENA), the listed international energy production and development company, is pleased to provide an update on operations in well ROB-1 (“ROB-1”) of the Robbana concession (onshore Tunisia).

Zenith can confirm that Schlumberger logging operations performed in ROB-1 have evidenced major corrosion in the casing and a lack of cementing in the location of previous perforations performed in 1988 being the cause of water ingress in the wellbore.

To remedy the above, the Company has retrieved the old packer installed in ROB-1, and now successfully set a new packer supplied by Weatherford in ROB-1 at a higher depth.

The Company plans to start rigging down the workover unit today, with a view to running the recently acquired Weatherford sucker pump back into ROB-1 during the next 48-72 hours. Production from ROB-1 is planned to recommence on June 8, 2022, with stablished production expected to be achieved on or before June 18, 2022.
https://newsweb.oslobors.no/message/563748
Cat349e
31.05.2022 kl 12:14 1390

Da blir den hvertfall ikke plugget og forlatt. Bare få dager til vi har produksjon🤩🤩🤩
happi67
10.06.2022 kl 12:06 1128

Får vi produksjon tall på mandag?
Cat349e
10.06.2022 kl 12:35 1084

Les siste børsmeld
Mdg1
10.06.2022 kl 12:36 1077

Før eller innen 18.juni
happi67
10.06.2022 kl 12:46 1055

Takk for info 😃
Mdg1
10.06.2022 kl 13:01 1029

At det skulle være veldig forskjellig fra 100 boed som det var sist er lite sannsynlig