I can’t believe what I read today from Zenith Energy (LON: ZEN). It’s actually good news in a small way. However the RNS is poorly constructed and in my opinion there was no need for it. This information should have been tagged onto the well M195 workover RNS which sources indicate should drop later this week. Thus saving ZEN the cost of yet another RNS at £250 a pop!
The RNS today states the Company have increased production by 14bopd. Now what investors are miss interpreting is that this isn’t the workover programme. These are minor tweeks, small mechanical upgrades to existing infrastructure in the field. The work has been completed by salaried staff. This is employees conducting day to day work duties. There’s no cost to the company other than spare parts etc.
These small upgrades have increased annual cash-flow by circa $250,000. Do not confuse them with the Workover Programme.
The news the market awaits is the bopd numbers from the workover of well M195. This has had a full workover. We know that it’s Azerbaijan, the bureaucratic process is somewhat convoluted. The workover is complete. What we await is official confirmation, the signing off of the workover by the Azeri state ministry etc. What could the oil producing figures be? Any thing from 30-60 bopd. When you extrapolate and forward think this number then you can see the potential rise in daily production.
The news that the shysters at Gunsynd (LON: GUN) have yet again converted stock and are actively selling is one of the things beyond the control of the Company. This is taking the sp down. However the sooner these fookers are out the better.
Now here’s the latest rumour. We know that their CEO Catteneo is a deal maker. We know the team are in Baku as we speak, Zenith maybe in asset negotiations for further oil producing assets in Azerbaijan and more than likely in Italy and Africa. Just where and what those assets are isn’t yet known. But believe me we will try to find out….. One thing is certain there are deals in the pipeline and the history here tends to repeat, i.e a deal for a producing asset/s that have been poorly managed.
Great company. Lot of potential as always research etc.