Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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I'd be pretty bloody disappointed if they decide to cash in their warrants on another dilutive acquisition. It would need to be one hell of an acquisition for me to be ok with it, and absolutely sp accretive, which I doubt is possible in current oil environment. Even the shale patch is up off its knees and drilling like mad again. They clearly haven't gotten on top of everything they've already purchased given the delay in divi, lack of f/o etc so would rather they do this before embarking on any more acquisitions. I agree that growth should come from what we have already - drilling Clearwater, more Noel wells, and getting the f/o sorted. If they do this we're 15-20p. More than happy for us to be bought out as well, providing it's for +20p :) GLA
I tend to agree there is nothing in sp for serenity.
Just spend $10m in clearwater acreage im confident they can increase oil production by 1kboped - 2kboped.
Absolutely no need for further aquisitions currently.
They are options - I very much doubt they will forego their entitlement or indeed change the parameters - why would they? Most Companies I have come across - it always seems to be Management (Executive Management) interests first followed by SH. The vesting criteria for the first 2/3rds I think demonstrates this - very little / no benefit for Shareholders. The criteria for the final 1/3 should be good for shareholders i.e. adding 25mmbbl of reserves or 5,000 boepd production should they achieve.
I would like to see an effort by Management to bring down the number of shares in issue to below 700 m and reducing. . We're currently at 700m and will shortly be heading north to a fully diluted share count of nearly 840m.
Quite why i3e would contemplate further equity raises is beyond me - I see higher SH returns via organic growth, aquisitions if funded through CF and debt and share buy backs particularly as Serenity is not yet significantly recognized in the SP.
These mgmt warrants are still there though. Will they forego access to one third of their warrants in the interest of maximising shareholder value?
Or change the parameters on the warrants perhaps
Remember in interview where majid said eventually we will have to pay 4 x fcf for aquisitions and then it would be cheaper drlling your own reserves.
This is where we at now.
Id prefer they grow organically this year, they have oil shows at there clearwater acreage and i hope they drill there.
Company guidance in 21 is yet to be confirmed. So hold on..
I thought the cheap acquisition window was last year, we already have acreage on Clearwater we can drill cheaply to production haven't we ?
Unless I3E can "steal" another producer a la Toscana I don't think it's the best policy.
Just my opinion.
Oiler. It can be the only Explanation re the delay in Q1 Dividend progress. An Acquisition coming. May also Explain some Institutions Reducing a few Percent. BWDIK ?
Tony
The presentation did state 4-6 wells, i cant remember which interview he said it but i do remember him saying it.
Bring on q1 update, sure we will get 2021 production guidance.
Maestro,
I hope they do as well. Do you recall which interview Majid stated that ? I dont recall him saying that, but I don recall them talking about a 4-6 well program in 2020/21. This I think was in the March 2020 presentation.
We didn't hear about Noel until well after it was drilled - so hopefully we may here about additional wells in the upcoming update. It would also be good to understand better how long it takes to bring wells online. We have previously heard 4-6 weeks to drill and tie in additional wells. Noel is taking far longer - it would be good to understand the constraints.
Tony
I really hope they target clearwater this year, increasing oil production should be priority. With wells costing around $1m to drill they worth taking the risk.
I recall last years interview with majid where he stated they planned to drill few wells in clearwater in late 2020, that didnt happen.
Maybe second half of this year they have a crack.
Maestro,
Well its a rough calculation using the same Mirabaud model as for i3E i.e. similar opex, maintenance capital etc. The nice thing about it though is that it is basing off what someone has actually paid for "similar assets" rather than an estimation on what someone thinks the assets may be worth. You will note that i did use 9700 boepd to ratio the revenue ( i.e. including Noel.)
I did not include any further production for shut in wells - one of the reasons is that i3e have not done a good job of advertising what shut in production they may have if indeed they have any. You also need to remember they need to be adding 7-10% just to maintain production. I suspect this is maybe whats happening - i.e. shut in production has been added but this has only gone to maintaining the 9150 published figure.
tonynorstrom1
As always very well balanced.
I think we should be around 15p at present and this ignores serenity and future production. Last update in feb stated production from Nov to January was 9150boepd, i would assume with the gas/oil prices improving they would have open some of the shut in wells this year, so likely some increases.
I3e was listed on tsx late 2020, is fairly new to them, once they get q1 figures and with oil at around $60 they will get a rough idea of what they working with. Im convinced of this.
Scoredagainsteps
Trust me, once the divi or q1 results out this will surge. IMHO
2 weeks wait...
JUST CANT WORK OUT WHY WE FIND IT HARD TO BREAK 10P
GGG,
Naughty boy - hope you've learnt your lesson !
Just playing around with the numbers to see what the Anegada Deal might tell us about a current market valuation for I3E.
Bearing in mind I3E is approximately 57%/18%/25% (Gas/Oil/NGL's)
Anegada - 29%/55%/16% (Gas/Oil/NGL's)
Assuming Gas at $2.60, WTI at $60 and total production at 9200 boepd then:
I3E-------------Revenue / FCF - is approximately $88M / $31M
Anegada-----Revenue/ FCF - is approximately $131M / $71M
Anegadas purchase price = CAD 494M = UKP 283M including debt
Assuming valuation on a FCF multiple - approximate EV of i3E = 283M x (31/71) x (9.7/11.8) = UKP 102M
Assuming I3E net debt of UKP 10m gives I3E a Market Cap of UKP 92M or an SP of approx 13p.
This ignore Serenity and the fact that I3E has slightly larger reserves than Anegada which should add to the SP.
Hi guys,
Been off the board for a few days - I got suspended for saying 88e was a con job :) After 2 days to reflect I've decided to look at the 88e lemmings running off a cliff from an entertainment perspective now, rather than trying to stop them :)
Still stuck at 10p I see. Let's hope the bod pull their finger out and deliver some hard news on the divi soon. Getting the paperwork done and telling us when it will be paid would be a good starting point! Agree we need to target oil from now. The Noel prospect points to plenty more gas being available. But oil makes complete sense given profitability, current poo and short-mid term future. The f/o will obviously put a higher floor under us. It will be exciting when they finally sort it out and the lemmings start running this way after the drills start turning. Need to secure the f/o first though. GLA
Tve are doin some good deals at present.
Shows how cheap i3e got their assets. Q1 results are out very soon hopefully investors will see just how undervalued i3e are.
What i will request from i3e will be to drill some oil wells this year.
Test
Apologies Tony. Found their press release hopefully the link works
Acquisition Highlights
• Establishes a material contiguous position in the Charlie Lake, one of the most economic plays in North America
o Approximately 11,800 boe/d(1) of Charlie Lake light oil production (71% oil and natural gas liquids) with annualized operating field netback(2) of ~$135 million
o Expect 2022 production to increase and be maintained between 12,000 and 13,000 boe/d(3)
o Over 200 net future drilling locations,(4) across 332.4 (321.2 net) sections of Charlie Lake land,
support current production levels for more than a decade
o The Charlie Lake ranks among the most economic plays in North America, with wells that payout
in approximately 6 months and generate IRRs in excess of 400%
http://www.tamarackvalley.ca/wp-content/uploads/2021/04/21-04-12-TVE-Press-Release-FINAL.pdf
Test
Kane,
The link doesnt seem to work. I think most of us would agree that I3E is worth quite a bit more than current SP. Using the below as a metric - it would be nice to know how much of the 11,800 boepd is oil otherwise it would be hard to extrapolate. If it was all oil (which it is not), it would indicate I3E as being overvalued.
CALGARY — In another sign of ongoing Canadian oilpatch consolidation, Tamarack Valley Energy Ltd. says it has agreed to buy private Anegada Oil Corp. for a net $494 million.
The Calgary-based oil and gas producer says it will pay $248 million in cash and assumed debt (after deducting proceeds from a royalty sale) and issue about $246 million in shares at a deemed price of $2.34 each for Anegada, which produces about 11,800 barrels of oil equivalent per day from the Charlie Lake area of northwestern Alberta.
Tamarack Valley also says it has sold a two per cent royalty on its Charlie Lake assets for $32 million to Topaz Energy Corp., a company created by Tourmaline Oil Corp. to hold petroleum processing and handling assets and taken public in a $250-million initial public offering in October.
Our Market cap should be a lot more!!!
https://www.timescolonist.com/south-delta-leader-header-only/tamarack-valley-strikes-deal-to-buy-private-anegada-oil-for-494-million-1.24306240