Share-holders in Zenith Energy (LON: ZEN) are on tenterhooks awaiting the news from the companies first well work over in Azerbaijan. Oil is flowing from well M-195 directly feeding into storage tanks. That means that the workover is complete, more importantly successful. I’d now expect that this Blog will force an RNS this week.
The whisper here is that production has increased from well M-195 by a stonking 250%-500% the number is significant because if you forward think it by X 20 you can extrapolate a ‘potential’ in excess of 1200 bopd by March 2017. Actual cash revenue would increase many fold. Production from the first well should come in between 40-60 bopd. We know they are currently working on more wells so I’d expect news to keep dropping of mainly successful re-completions/workovers.
Now remember there’s a lot of behind the scenes activity going on here that the Company are not reporting, such as further asset producing targets. I can exclusively reveal that Cattaneo (CEO) is known to be in negotiation’s to bring in more cash producing assets from Italy, Egypt, Azerbaijan and Asia. The key here is to either trade on the rises or hold as they incrementally increase revenue/production.
There’s also the Gunsynd (LON: GUN) Lenigas threat of a corporate action to Takeover and oust the present management. The Board here have acted very quickly to see off these corporate hyenas. However I am still not convinced that they’ve gone far enough. The fat Aussie will not give up easily. Fat man is eyeing their increasing cash revenue and would love to get his fingers on the bank accounts. That would be disastrous for share-holders as it is Cattaneo who is the main-stay of all the deals negotiated in Azerbaijan/Italy. Lenigas would be out of his depth and doesn’t have the skill-set to progress in Azerbaijan.
Expect an RNS this week.
International Financial Blogger of the Year 🙂