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Freshair says:
'To share the cost for two drills was a no, no, for me. '
&
'Why did they share the cost for two wells.? '
imo there is still much to learn. We only know some things. They were talking about the dividend for a long time, teasing the PI along, and flagging the impediments that had to be overcome before any payment. But at no point did they share that there was an additional blocker until the BHGE RNS landed with the resolution baked in.
We know (as in they have not advised to the contrary!) that they have not executed a farm out to share the cost, and we also know 'There are thirteen revenue generating field areas in the North West Package. ... 55% of Gain's production is operated with an average working interest of 75%. [pg 55 of Admission Document]'
But we do not know if this drilling is in a Licence operated by i3E or the partner and they are honouring their share of the Capex to get their assigned production share.
Using the phrase “i3 Energy has elected ...” provides no clarity and indeed could be said to purposely obfuscate.
Jimo
joe
Thanks Tony, well lets see what else he can come up with, currently payling with a few share to help to up here.
Sorry - I thought you were asking where I know him from. Your asking for the links I assume:
https://twitter.com/drjimjonesceo
https://ceo.ca/@drjimjones
Someone here came across his research report on i3e about 2-3 months back and posted the link here and contacted him. He subsequently posted 6 or 7 times here promoting his report.
I liked his report and have since kept an eye on his website / twitter and some of the shares he is following / investing in.
Hi Tony, I have been following EMO and bought in 2 days ago with what i had avaialble, where do you follow Doc Jones?
I just asked Doc whether he has considered issuing an update of his i3e report. His following seems to be growing day by day particularly because of EMO.
Don't know whether anyone has been keeping an eye on EMO - Doc bought a significant stake at about $0.23 and has been buying all the way up to $0.93 as recently as a few days ago - up another 25% yesterday ($1.23)
I know his name receives mixed opinions on this board but Zac Mir just tweeted a timeline of potential i3e news on his Twitter feed. He may not be to everyone’s taste but he does have nearly 20k followers.
At $73+ WTI I find it staggering that volume is so low. Roll on the dividend and the subsequent change of uk investor sentiment!
Over 10p across the pond, oil surging, uk investors getting tight.
Why should we be harder to take out? It's the II's who are the majority shareholders, not us. The Pi's don't make a ripple in a pond. 15 wells tomorrow? Are we drilling Simonette? Ok let's do it! Did Graham say when or if, we develop Simonette? Why did they share the cost for two wells.? Why are they not paying off the LN interest? The best wells are already known by the Canadian Geoscientists NOT Majid. Clearwater is only available 6 months of the year; It also has Bitumen/ heavy/ light oil so everything is not as clearcut as its made out. BC needs time to recover from weather conditions! So how many wells are we going to drill in a year? There are deals taking place involving K's bb/l's day. So how many bb/l's will we be exporting in a years time to the US or Asia. An average of 170 bbl per well of new production over a year, takes us where? An extra 1500? If we are lucky! Bybrook/Cairn Capital, WILL fund i3 to develop the wells, thats where I stand. The fact i3 will pay Bybrook in kind for the LN's 2023, most likely with options, leads me to believe further funding will be available and PIK with ATM options; these can happily sit unhindered alongside their shareholding. Hedge Funds work on a certain percentage, normally, set against a baseline of whats achievable from an index. A dividend will not reach that percentage, it will be the sp that gives them their expected return. Thats why I see Bybrook investing to achieve that.
London-based Cairn Capital, bought by Milan-based Mediobanca in 2015, said on Tuesday it would acquire Bybrook for an undisclosed amount, adding $2.5bn in assets under management, set to complete by the end of June, 2021
Cash Balance end Dec....................$8,742,000
FCF Generated to end June..........$10,575,247
1 Noel..............................................-$500,000
2 Clear Water Acquisition...............-$300,000
3 Clear Water Farm-in..................-$4,400,000
4 South Simonette Aquisition.....-$4,200,000
5 South Simonette work over.....-$1,160,000
6 Dividend....................................-$1,635,600
7 Wapiti - 2 wells.........................-$2,100,000
8 Wapit acquisition & Workover.....-$410,000
9 Miscellaneous.............................-$1,500,000
Total.................................................-$16,205,600
Balance end of June...........................$3,111,647*
* It is likely that some of the sums are not due in full for several months after June hence the remaining balance is likely to be higher than shown.
Freshair,
I agree with you - if we want to move the needle significantly, we need to get some cash to fund developments either through debt or a farm-in. If we're relying on FCF - then were stuck at about $2m capex a month until we build scale which will take some time.
If you tot up everything that i3e has spent on capex since the start of the year - its about $16M. Hard to know when the bills actually come due - but that leaves us with about $4 - $5m in cash by my estimate - a lot less than some think.
Fresh, I think you'll find we are making more money than we can spend drilling at the moment, so don't really need to go down the debt route. They could drill 15 sites tomorrow with cash on hand, and by the time they've drilled and hooked up these wells (6 months) they'd have enough to drill another 15 and so on. But after 12 months you start to see the fcf coming from the initial wells, so you very quickly get to a place where you can drill 20, 25 wells from fcf being generated (post divi) without the need to take on debt. I agree they need to get on with drilling, but it takes time to isolate the best wells, get permits etc in place and get the whole thing moving. Having said this I hope they're looking to really start motoring with a drilling campaign in Clearwater and Simonette. Proving up the production values of these areas will make a huge difference to our share price, and will also mean we're harder to t/o, which I think is a very real possibility at the moment. Only good news from now though.
@ fastfood,
Market wants then to get to 12000 boepd and then 15000. They need to get on with it. We should be at 12000 now.
I agree.
I wasn't expecting another proactive interview so quickly. They are now promoting the company but the pointer hasn't moved. We need to have hydrocarbons coming out the ground instead of telling us whats out there. I don't think we have enough working capital which differs from others on here. To share the cost for two drills was a no, no, for me. We cannot wait for FCF to build up before we drill. We need term debt to fund drilling. As long as we have incremental FCF as a consequence of any debt i3 will find legs.
bots - I heard that as well - I'm pretty sure he corrected himself and "when we invest" is what he meant.
I'm pretty sure that this is the big investment "to move the needle" that Graham is referring to - its in the presentation and believe they are looking for a partner to farm in and provide the cash.
I like this bit just after 3.38
“The South Simonette property is one that could add really significant production ‘if’ we invest.... ‘when’ we invest the capital.”
‘If’
South Simonette - 99% owned by i3E.
Why wouldn’t they invest the capital? No one else would, or would they?
Well done to Graham and Majid on more interviews and PR. Its a pain in the @ss for them to do, but it will boost shareholder confidence and the mcap (ergo our ability to raise cash), plus make us bigger to swallow. This last point is important, as we are no doubt at a valuation where we become a very tasty prey for a mid-tier producer who wants exploration upside. It's rare that you get the good production, significant diversified exploration upside in safe jurisdictions, and little to zero debt. A higher share price makes the target on our back a little harder to hit. Divi should help take us to double digits in the coming weeks. More production and the f/o needed in the near term to get us to 15p, which is where we become that little bit harder to swallow. AIMHO GLA
BNP !!
Troajan. I heard somewhere that if the World Stopped pumping Oil / That The Stocks would run dry within 90 days. This is what drives the fluctuations in price. Throw in the fact that PNB Paribas and co have Stopped underwriting Oil Exploration and le Viola’. Oil will be produced going forward from one’s own Cashflow. Fluidity has ended. Natural Decline Rates will take care of the rest. Next up is a WW ban on all Offshore Exploration drilling. One by One. Hold on to those Shares. We are in.
https://uk.finance.yahoo.com/news/key-oil-spread-jumps-seven-210043089.html
Thank goodness for TSX. Today I could not Dummy Sell more than £500 at a time. None Sold of course. I am here for the duration. This BOD make a Big Deal of 150 added barrels of Oil when Brent is over $70, Yes Deals are good imo but they need to be Short Sharp and Sweet. Market wants then to get to 12000 boepd and then 15000. They need to get on with it. We should be at 12000 now.
Blue day tomorrow here too, tsx 10.16p.
Company thinking of increasing production by 3 times, dont forget they have infrastructure for 30kboepd already..
Closing price on TSX is 17.6. We’re so underpriced on AIM it’s UNREAL!!