Details on - NW OML141 RSC (Barracuda etc)


NW OML141 RSC is the NW section of license OML141 (Oil Mining License) which is a mining oil license in Nigeria that coversn1,295 km2 in the swamp/shallow waters (depth of less than 25 meters) of the Niger Delta in Nigeria.

ONL141 has an interesting history. It started life as OPL229 (Oil Prospecting License) and 38% of this was originally “bought” by the Chinese state China Export and Credit Insurance Corporation (SINOSURE) in January 2005 who put is into a SPV called Aerd Projects Nigeria Ltd. Less than 16 months later in April 2006 they sold this to the China National Offshore Oil Corporation (CNOOC) for $60 million. They also put an $80 million loan into the projects, spent about $16 million on seismic and drilled two wells (Barracuda in April 2007 and Dila later the same year). Both wells were described by CNOOC as “significant finds” but they did not give any reserve figures.

In August 2008 CNOOC surprised the O&G industry by returning its stake in OML141 to the operator Emerald Energy Resources. When asked why they did this they would only say “There are many blocks we are working on. We move in and out -- it’s very normal. But I can’t comment on any specific block,” however subsequent events have made it clear that this was to do with fears about corruption rather than worries about the block itself. Chinese media reported in April 2008 that SINOSURE’s chief, Tang Ruoxin, was under government investigation on charges of unspecified illegal activities and in 2010 he was sentenced to 14 years in prison for taking bribes. Given that Sinosure paid $30 million for their 38% in 2005 and sold it for $60 million in 2006 you can see why CNOOC may have wanted to get rid of this asset before anyone in the Chinese govt looked too much into why they paid double for this asset and what happened to the money…

Emerald Energy Resources then got involved in a $60 million court case with Sinosure in 2018 https://www.oeclaw.co.uk/images/uploads/documents/China_Export_Judgment.pdf and then had to give back the ONL141 license to the Nigerian government in 2019 due to non-payment of fees https://africaoilgasreport.com/2019/04/farm-in-farm-out/nigerian-government-revokes-licences-of-seven-oil-blocks/ however, over this time NW ONL141 appears to have becaome a license in its own right.

NW ONM141 Zenith is the North West 105 square kilometers of OML141. This area is completely onshore in the marshland as opposed to the actual offshore area and according to their website Noble Hill Network Limited have a risk-service contract executed that means that they will be the exclusive service provider and will provide funding and develop the Northwest 105 square kilometres of OML 141.

We know from Zenith’s RNS of August 31st that NW OML141 contains two discovered fields (Elepa South and Barracuda) which are “drill-ready” and that there is one prospective field that has an estimated 232.7 million barrels of oil. The also say that this has the potential to grow to more than 500 million barrels of Contingent and Prospective Resources with several TCF of prospective natural gas and condensate.

We also know that ADM said in their 18th April 2021 RNS that the first drill target (that they were aiming at when they still had the rights to the asset) was targeting production of 4,000bopd. They claimed that drilling six wells would target production of 23,000bopd and they also gave the details that the opex figure per barrel of oil in this region was $20 per barrel but this could be reduced down to $12 per barrel if the company develops a 12mk pipeline to the Brass Export Terminal. All of this can be seen at: https://www.lse.co.uk/rns/ADME/completion-of-barracuda-field-transaction-whzmetdfm0mtiqe.html

So clearly the license has great potential. Back in 2006 CNOOC bought Total’s OML-130 block which had recoverable reserves of 600 million barrels for $2.69 billion, and while the NW OML141 is not likely to yield anywhere as much as this, proving up recoverable reserves of 100 million barrels would still be worth hundreds of millions and be life-changing for Zenith and it’s investors.

We have an idea of what it will cost to get hold of a share in the RSC as ADM paid $1.3 million for what they thought was a 35% stake.

We know that there are two well-sites that are ready to go and if the funds and rig were in place then it would be possible to drill before the end of the year (but more realistically this will be in Q1 or Q2 next year).

We also know from AC’s comments in the conference call that we should expect news on this in early December

What we don’t know is:

1) How much of a share the RSC itself gives of the asset as Emerald resources are still marked down as the operator. What exactly doe the RSC give us?
2) How much money we are likely to have to put in to complete the drill.
3) Any details about the previous discovery that was made in Barracuda.
4) Any information about the CPR that ADM have supposedly been working on for the last 6 months.

Hopefully, this will be cleared up when we get the announcement that we have come to a deal with NHNL over the license. This definitely looks like it could be the “big one” that AC promised us a few conference calls ago.


Skal si den Nigeria nyheten gav rakettfart.. Rykke tilbake til start det, nok en gang. God helg
olje
03.12.2021 kl 17:38 5973

Jepp, tålmodighetsprøve dette. Kan vel konkludere med at uansett hva de kommer med så har markedet mistet alt av tillit. Trist!
Konjagi
03.12.2021 kl 22:18 5783

Hvis noen tror en mulighet i form av en opsjon skal skape vekst, da forstår man lite, eller i beste fall misforstår. Kun fakta vil skape verdiøkning i selskapet.
Og da dreier det seg i første omgang omgang om Tilapia og den kommer rimelig snart ifølge CEO. Stay tuned
Svartsyn
03.12.2021 kl 23:01 5731

Her har du helt rett, Konjagi.
Folk skjønner ikke mer,sånn er det.
Spesielt med Zeniths sin historikk, det er kun godkjente avtaler og gjennomførte operasjoner som vil gi et kursløft.
Men en ting er udiskutabelt, det har aldri sett bedre ut, i selskapets historie.
Smør dere inn med tålmodighet,så er sjangsen stor for rikelig belønnelse.
Ha en utmerket kveld alle som en.

Må nok mer til nå for å flytte kursen oppover kontra i fjor på denne tiden. Er jo dobbelt så mange aksjer i omløp.

Seismic interpretation and petrophysical evaluation of SH field, Niger Delta

https://link.springer.com/content/pdf/10.1007/s13202-017-0363-x.pdf
Aldara
12.12.2021 kl 16:30 4698

Har ikke CEO tidligere gjentatte ganger sagt at den skal komme?
Vel, en gang må det jo stemme selv om man gjentar seg selv hele tiden..

Helt riktig! Der er du jaggu spot on! Trodde nesten du hadde solgt deg ut, Aldara!

Ha ellers en fin søndagskveld alle sammen!
Hektor
13.12.2021 kl 12:39 4248

ADME har nå startet rettsprosessen. Betyr det at vi ikke kan vente noen Nigeria nyheter i år?
Hektor
13.12.2021 kl 13:32 4121

ADM Energy ned 15-20 prosent i dag, jeg sitter stille i båten ihvertfall
Redigert 13.12.2021 kl 13:32 Du må logge inn for å svare
Herman*
13.12.2021 kl 13:53 4071

Nå går opsjonen ut den 15.1.22, så de har jo litt tid på seg til å ta en endelig beslutning. Denne juridiske konflikten er jo veldig relevant/viktig for Zenith, men da de ikke er part i saken blir det vel kanskje vanskelig å si for mye offentlig. De kan benytte seg av opsjonen for så å saksøke Noble hvis ting skjærer seg, alternativt kan de be om en forlengelse av avtalen og vente på en rettsavgjørelse. Er det ingen av dere som klarer å få en kommentar fra AC?
Redigert 13.12.2021 kl 13:54 Du må logge inn for å svare

Om man skal tro ADM så er det umulig å gjøre endringer på eiersiden så lenge rettsprossesen foregår.
Herman*
13.12.2021 kl 14:51 3958

Har du en link til den uttalelsen?
Aldara
13.12.2021 kl 15:14 3891

Denne er så dårlig at det er til å få frysninger av.
Unnskyld, frostskader mente jeg!

Dersom K.O.N.H. hadde hatt kontrollerende eller kontrollerte interesser i andre selskaper, så er de pliktet til å registrere det.

https://find-and-update.company-information.service.gov.uk/company/13213236/filing-history
Redigert 13.12.2021 kl 15:47 Du må logge inn for å svare
Herman*
13.12.2021 kl 15:55 3774

Har lest dagens melding. Det virker vel som om Retten har midlertidig frosset selskapets mulighet til å selge til Zenith. Uansett er Zenith en skadelidende tredjepart, og vil måtte kompenseres hvis avtalen går i vasken. Hvis Noble mot formodning skulle tape, kanskje Zenith og ADM ender opp med å kontrollere lisensen for en slikk og ingenting, med Noble på f eks 10%….? Da jeg forsøkte å få klarhet i denne problemstillingen, valgte selskapet å ikke svare. Flere av dere skribenter fortsatte bare med en blind haussing i stedet for å vurdere muligheten for at denne saken kan medføre utfordringer. Da jeg kjøpte meg inn forleden, la jeg Tilapia og Tunisia til grunn med Nigeria som bonus. Det er allikevel irriterende at zenith ikke så dette komme.
Redigert 13.12.2021 kl 16:13 Du må logge inn for å svare
Herman*
13.12.2021 kl 18:51 3639


Dette er et brev fra «Florida» på et av de engelske forumene. Det er fint at noen er kritiske, ikke bare tar for gitt at nå skal aksjen gå 10x. Uansett er det snart tid for Tilapia og nye oppkjøp i Tunisia, så jeg kan ikke se at aksjen har noen vesentlig nedside mens vi venter på gode nyheter.

Dear Andrea Cattaneo,

Congratulations on your recent “Option Agreement” for the NW OML 141 concession. I have to say I am pleased that a deal of sort has been struck, however, the terms of the deal and the circumstances that surround it have left me, let me say, slightly uncomfortable. The recent ADM RNS 29th November, reinforces ADM’s claim with regards to 70% indirect ownership of Noble Hill Network/OML 141, through a 51% ownership of KOHN Ltd. I feel sure that your due diligence in the lead up to the Option Agreement was thorough, however, I do have some reservations regarding the legitimacy of ownership, more so potential litigation regarding such ownership in the future. Zenith Energy has in the last year made tremendous progress and as time moves on the risk characteristic of the company becomes less and less. The Option Agreement with a price tag of $20m and a contested point of ownership has certainly brought the company back into a high risk position. As an investor with what now is a substantial sum invested, I find myself financially attached to a wildcat oil company with a potential debt of $20m that has no means to repay such a sum if something went wrong. This is not what I originally invested into. The plan you set out to expand your already profit making, owned assets was a sure way of moving the company forward with a low element of risk. It is my hope that you can waylay my instinctive feelings of impending doom by reassuring me that if you were to go ahead with the Option Agreement on the 15th January 2022 ownership would not be contested. More to the point, neither would Noble Hills ownership position be contested. Lets be frank, if Noble Hill and ADM became legally combative Zenith would undoubtedly be drawn in, if not stifled, unable to progress the concession. Let me say I am fully experienced in large sums of money being tied up because of litigation. It ties your hands and financially breaks your back. I have been in business and invested in the markets for more than forty years and this deal, in this position, wreaks of litigation. Please put my mind at ease. Best regards.

Please see questions below regarding “Options Agreement”.

Question 1
How would we repay the $20m if you failed to recover oil on the first three wells?

Question 2
Are you absolutely sure that our ownership position of NW OML 141 would not be contested?

Question 3
Are you absolutely sure that Noble Hill Networks 100% ownership position of NW OML 141 would not be contested?

Question 4
Are you absolutely sure that KOHN or ADM Energy have no ownership rights to NW OML 141 and would not contest this position?
Tetro
13.12.2021 kl 19:36 3553

Bør jo komme en oppdatering fra selskapet på hva de tenker om denne saken. Som du sier er usikkerhet noe som eventuelt større investorer holder seg unna. Dette er en stor usikkerhet da det kan låse masse kapital over lang tidog kan bli dratt inn i en lang rettstvist. Dette kan være svært skadelig for en mygg som Zena. Mange gode nyheter i vente så kanskje vi ikke burde benytte oss av denne opsjonen. Muligheter vil komme og det er mer enn nok å utvikle på de feltene som kommer. Go safe.
Herman*
13.12.2021 kl 20:00 3500

Eller så kan de bruke dette mot Noble for å forhandle frem langt bedre betingelser. ADM var smarte nok til å knytte noe av betalingen opp mot resultatene av første brønn. Zenith kan knytte betalingen opp mot de tre første brønnene, og således redusere risikoen betydelig. Skulle Noble til slutt tape, må de betale erstatning til zenith. Det kan jo være at de ikke har cash og at de dermed må gi fra seg noen assets til Zenith.
Redigert 13.12.2021 kl 20:03 Du må logge inn for å svare
Joffe3
14.12.2021 kl 01:01 3260

kanskje Zenith og ADM ender opp med å kontrollere lisensen for en slikk og ingenting,


Utrolig spennende. Tenk Tilapia og alt med mer før juleaften, da skal jeg igjen ta av meg hatten for AC .

Lykke til alle sammen.

Er du inne. ?

Minner om at India med sine milliardar av mennesker, ikke er klare for det grønne skiftet før i år 2070.



Joffe3
Redigert 14.12.2021 kl 01:14 Du må logge inn for å svare

I think that the license is a good one but with the news from yesterday that ADM Energy have taken legal action against Noble Hill then Zenith should get NH to agree to extend the exclusivity agreement until the legal issue is sorted. Zenith can afford to invest $20 million and to service it out of revenue from Tunisia but we cannot afford to invest $20 million and just have it sitting in NH's bank account. It has to be spent on drilling for oil and if the legal argument is preventing this from happening then we should sit on the sidelines until clarity is achieved.

The ADNM Energy vs Noble Hill argument is not our fight and we should only step in after it has been fully resolved.
Hektor
17.12.2021 kl 12:27 2572

ADME ned 28 prosent på Xetra i dag. Investor call 21 desember.
Stor nedgang, men skyldes nok sikkert lite volum.
Herman*
17.12.2021 kl 12:34 2546

Zenith kunne jo lagt inn bud på selskapet og dernest forhandlet frem en rabatt på de 20 mill usd fra Noble. Win win…:-)

Vi får nå se hvordan dagen blir ...får vi en fredag som sist uke så kan det like godt ende på 11,5 øre... Det nermer seg uansett for hver dag med nyheter fra selskapet, både Tunisia og Congo... Så mye selskapet har hentet i kapital, så skal det nok solide avtaler på plass..
Er vi heldige får vi en melding mandag so i fjor i desember...
Gullit
17.12.2021 kl 13:13 2421

Liker stillheten her, da jobbes det med større nyheter.. kan godt komme samme julegave som i fjor.. spenningen stiger

I believe that under Nigerian law a foreign company cannot own a majority stake in a Nigerian oil company. This is why we have gone for 42% of NHNL and it is also why I believe that ADM Energy's claim that KONH owns 70% on NHNL is untrue.
Hektor
17.12.2021 kl 15:24 2237

Opp 36 prosent på et knøttlite volum for ADME nå. Enig vi kjøper dem opp ;)
Herbius
17.12.2021 kl 15:56 2155

200 % 🛢💰🛢💰
Herman*
17.12.2021 kl 16:06 2132

MarketGunsling: Their shareholders are so fed up they are almost ready to give their shares away for free…
LATO
17.12.2021 kl 21:34 1891

Vi får håpe nissen kommer med news neste uke..
Vært unormalt stille i det siste 🎅
Tetro
17.12.2021 kl 22:14 1838

Spørsmålet her er hva som kommer. Kan det være at Congo kan bli mye større enn vi håper på. Hadde det bare vært snakk om Tilapia skulle det vært signert for lenge siden.
Gullit
18.12.2021 kl 08:36 1659

Er vel det som er dilemmaet no, er nesten for store muligheter flere steder, men føler meg trygg på att AC loser oss godt i havn.. det er stille ja og det pleier å love godt…

Det jobbes i det stille.
Dette kan bli svart gull i bøtter og spann 🔥👍

Tenker på A C som han lille italieneren i filmen
Home Alone .

Jojo , håper tar feil 🧑‍🎄

Det eg ser for meg e at A C overtar styringen i allerede etablerte selskaper. Så en spleis den kommer kanskje allerede i Q2 2022
Redigert 18.12.2021 kl 14:14 Du må logge inn for å svare