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A strong interview with very good figures.
Majid is very shrewd and has built a good strong company. I’m happy with progress and feel this stock is going to grow some. Gla, this is just my opinion btw.
Scouting, I'm not trying to talk the share down, but it will likely pull back. There's a hell of a lot of flippers here. Important thing for mgt to recognise from this week is the power of a little PR. They've just released some good news, had it picked up in a few places, and have done an interview. On the back of this we've jumped over 10%. If they got into the habit of sharing good news, more often, and more widely, then we wouldn't be at risk of dropping back in between news periods and probably 1 or 2 pennies higher.
Maybe 11p tomorrow, but my bet is we'll be back to the mid 10's by mid next week if we don't get anything else to keep people from taking their 5-10%. Fine by me as I'm willing to support the sp at this level.
Outlook looking strong here though, hence my accumulating over the last 2 weeks. GLA
I reckon we open both feet over 11p tomorrow.
Some accumulating going on here.
agree 3lbs but i picked up 250k at 10.5p earlier today :) problem is the sp just jumped and now i know why - the proactive interview. the irony isn't lost on me that we've jumped due to pr, which is something i've been complaining about them being **** at doing for years. suppose it's some type of karma.
reckon it will drop back again to the 10.5p range after people have taken their profits today. if you were piling in a couple of weeks ago you'd be 20% up right now. i'm relying on some trimming to get some more in the low to mid 10's. gla
I3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) chief executive Majid Shafiq joins Proactive's Stephen Gunnion with details of a positive refinancing for the company.
The company has entered into a reserve-based lending (RBL) facility, secured against its Canadian reserves and assets. The facility totals C$75 million, comprising a C$55 million revolver and a C$20 million operating loan, with an option to index the rate to the Canadian prime rate. This new arrangement offers a slightly better interest rate compared to the previous loan and is expected to reduce as central bank interest rates fall. It also effectively halves the company's current interest costs due to cash balances being held with the lending bank, offsetting the loan.
Shafiq said the refinancing has freed up $25 million Canadian annually, previously allocated to amortising the existing loan. This amount will now be reinvested in the business. Approximately C$50 million remains undrawn from the new facility, available for future investment to grow the business. The flexibility and lower interest payments provided by this facility are highlighted as significant benefits.
Shafiq emphasised the importance of partnering with a Canadian bank, noting their understanding of the Canadian oil and gas sector and the capability to assess risk accurately, leading to potentially lower capital costs. This relationship is also strategic for accessing development capital for organic growth and mergers and acquisitions (M&A). Shafiq said the company's 2023 reserves update reveals stable reserves despite production, with 93 million barrels 1P and 180 million barrels 2P. He said this stability, achieved with minimal capital expenditure due to low gas prices, underscores the quality of i3 Energy's assets and its efficient management. The company maintains a low production decline rate and a diverse portfolio, enabling flexibility in response to commodity price changes.
Looking ahead, Shafiq said i3 Energy plans to use its enhanced liquidity for growth initiatives and will update the market on its capital programme. The relationship with a major Canadian bank is expected to provide significant flexibility and options for the company's growth strategy
https://www.youtube.com/watch?v=sJ3jYYkSoik&t=5s&pp=2AEFkAIB
Green shoots of a recovery playing out
Grab what you can at this level and sit back
GGG
I don’t think this will go back down to low 10’s again but anything under 11p is still a steal in my opinion.
Bottomsup - "It will be good to see another Rns this week"
You may get your wish tomorrow - from the Q4 update on 26 Feb:
"...the Company's 2023 year-end financial statements which will be issued by 31 March 2024."
Agreed though on Serenity I personnaly dont have a huge amount of concern - I think they have learnt some lessons and will tread more carefully in the future.
If you ignore everything prior to the last drill - the last drill was one of over 20 wells drilled in 2022 and came at a cost of only £7m which was less than a Montney well in Canada. The potential upside was huge and would have been a game changer.
As it stands now Serenity is worth nothing and they would likely get nothing for it on disposal, however, with an approved FDP - it is potentially worth something. I believe this was the plan the last time they areticulated it - i.e. develop Serenity to the FDP stage and then make a decision to sell it or develop it. I believe the cost to reach FDP would be relatively small - might be a question worth puttng to investor relations i.e. estimated cost to get an approved FDP for Serenity.
The work on the FDP stopped when the Tain licence lapsed so I assume they are waiting to see what happens to Tain before deciding how to proceed.
The one question I would have on Serenity / Tain if they decided to proceed - why was the reserves auditor able to interpret the technical data better than the technical teams of both i3e and Europa?
Huge clean up in 2023 with no CFO. Great asset base and undervalued.
Some concerns over Serenity and how much we will spend here but other than that bad news should be behind us.
GGG
We look in such a better picture than last year. Iam already fully loaded and have my entire investments in here. A huge sum so between you and me we hold already several million .
My 33 rd trade went through two weeks ago and like you I will continue to top up .
Onwards to 12p
I think I will stick with my 9,10,11% dividend yield .
Think you need to pay more than low 10s for your 3 million share purchase.
It will be good to see another Rns this week .Canada up tonight at 10.78p
All good news from my pov as I'm looking for an under-valued company based on fundamentals, which is paying a safe, high yielding dividend. Based on this I'm struggling to find a better company than i3e at today's sp. So for selfish reasons I'm hoping we have our traditional pull-back over the coming weeks so I can accumulate more. I've got a bit of a war chest so anyone wanting to book their 10-15% gains over the past month will find a willing buyer here providing you're willing to sell in the low 10's :)
Although they can monetize some of their plays , with the new loan facility I am not sure that they will do this as those very valuable plays such as Simmonette are liquids rich. We will get a better picture of management’s view for what is core and none core soon when they issue their 2024 Capex and development plan. I think we will see more JVs than outright dispositions…
"Is this good news,I don’t fully understand it."
the answer is yes and no:
1) it does not change the number of shares you have, the value of the shares of the net asset value of the company or cash in the bank - so in that sense the news is neutral as can be seen from the muted reaction of the SP.
2) It allows the Company to pay out dividends to shareholders and buy back stock - it does not create any additional funds. Why are they doing it - as per UK Company Law - Distributions which include dividends can only be paid out of retained earning which is really just a notional figure on the balance sheet and part of the capital structure. It is an accounts entry only and has no direct relationship to available cash. They are also adopting a new accounting standard for the Parent Company Accounts which apparently are already utilized for the Group Company Accounts. This allows them to recognize the value of the Canadian Business in the Capital structure of the Parent Company Accounts and create "distributable reserves".
'i3's Simonette Montney landholding is 78 Sections and this land alone is probably worth more than the current market cap if they chose to sell this holding.'
Is this good news,I don’t fully understand it.
⬆️
Agree. Thanks Tony for all you do here 🙏 Your reasoned posts are always a welcome when i3 was trading so low undeservingly. Most importantly though for keeping ‘Canuck da Divvy’ in check!
Tony
Thank you for all your effort over the years.
I see you on most boards correcting the poor researcher/ investor.
I have posted the brokers note on Stock house .
investors seem to be buying on it.😀
The credit facility has a variable interest rate with rates predicted to fall over the coming couple of years.
In addition, the previous loan covenant banned monthly dividends, so we await to find out if monthly dividends are back.
Agree 👍 💰💰💰💰
Majid Shafiq, CEO of i3 Energy plc,
"The fourth quarter of 2023 rounded off a highly successful annual capital programme for the Company, with a dozen wells drilled, and which like our 2022 programme, in aggregate exceeded pre-drill expectations and was executed safely and in line with budget. We are very pleased that this programme, combined with our robust, low decline, asset base and a razor-sharp focus on operational efficiency, delivered very strong financial performance, despite a challenging commodity price environment and ensured that the company met its production and net operating income guidance for the year. This is a testament to the quality of our portfolio and the skill, expertise and dedication of our staff. Our strong production and financial performance supported our capital programme, debt re-payments, and dividend payments to shareholders of over £15 million throughout the year, and our extensive drilling inventory provides multiple options to maximise return on capital deployment. As we enter 2024 with continued weakness in commodity price forecasts, in particular for North American gas, our business strategy remains flexible between high rate of return organic drilling and inorganic growth opportunities. The Company is progressing several initiatives which will be incorporated into an optimised 2024 drilling and capital programme, and we look forward to updating the market on this during the course of March."
Production Update
Production in Q4 2023 averaged 20,413 boepd, comprised of 63.9 million standard cubic feet of natural gas per day ("mmcf/d"), 5,180 barrels per day ("bbl/d") of natural gas liquids ("NGLs"), 4,155 bbl/d of oil & condensate and 429 boepd of royalty interest production.
Get the feeling things are really on the move, lots of news and action incoming imo.
GLA
GGG
Thought it was you buying last week.
I will be surprise if the share price doesn’t continue upwards to 12p by end of week
More news still to come.
Well done on your latest entry .
Lots of information given in the interview.
Big picture i3e capex was $75m in 2022, $30m in 2023. The new loan provides around $50m capital and removed amortization loan releases $25m - so potential $75m capex.
For reference the original 2022 programme was for $47m targeting 18 wells (12.6 net) and 5,250 boepd peak production increase.