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Tonynorstrom1. I believe you are right regard your 50m proven barrels Calculation and 8p 440m Shares etc. i3 should not play out that Outcome but nevertheless it is a good Marker to use.
What gets me is that Graham and Neill are in here for 13m Shares (That’s a Positive). They have already reduced their Ownership to 10% for a multi million pound Cash Shell as it was originally. We are here now at 7-8p range with Serenity Field 60m barrels recoverable ? If proven (They should).
Just how much of a Share of the Business are they going to have to give away in order to realise the desired Value ?
Surely we are nearer the End than the Beginning ? From 2017 to present.
Also ; Do you think the EU Tax Receipt on Revenue has anything to do with Time Lapse of Events ? Meaning come DEC 2020 / Things could move fast once we are out ?
I also believe i3 have no intension to have to produce the Oil. If the field is Proven / Then they will Sell up at right price.
Just IMO.
Tony
Liberator 1 was the lesser target.
Serenity, is of far greater value and the immediate capital requirement to drill an appraisal well could be less than $10 million, particularly if the drilling company will defer payment.
Post the Serenity discovery, I would have said that the future looks rosier.
What has become apparent over time is that the market simply does not understand the company and is therefore unable to value it. That is where the opportunity lies.
E-Al.
You are confusing institutional investors and nominee accounts, but the general point is right, as even the majority of PIs with holdings of any significance will be at averages much above this current pittance of an SP. FWIW, I don't see a company takeover as likely, but never say never!
At this point, given the SP, it is exceptionally high reward with much diminished risk.
Fastfood,
Just finished a Chicken Swarma in Vadodara - it was fab. Anyway - I can remember very well. I also remember when we were in the exclusivity period - we still needed 90M for the development - market cap was about 25-30m if I remember correctly - and some people on this board were saying we going to get the 90M for farming out 25%. I remember Ducati was on the board at that time and i stated that the share count would treble in order to raise the funds - it seemed everyone else thought I was talking rubbish.
Things don't look as rosy as they did back then and the market agrees.
And if it trades again at 60/80p and £1 a share?
OH MY GOODNESS.........................
"The greatest threat to I3E realizing its full potential is a hostile bid and the purchase of the company."
Over 60% of the companies shares are in the hands of institutional investors and BOD which means they forms the majority of voting rights. As you all know their holding average is multiples to the current share price so unless the takeover is financially beneficial to them they will not approve it.
Need 100% rise from here to get back to my 15p but in price.
Thus SP is a disaster.
Surely this is the bottom.
Can anyone actually believe how i3 was traded at 60/80p and £1 a Share ? Oh my goodness.
Tony
I covered that point in my earlier post.
The greatest threat to I3E realizing its full potential is a hostile bid and the purchase of the company.
If that does not happen, then the disconnect to which you refer is the real value opportunity and if it does happen, the current SP is an opportunistic purchase.
The junior loan probably is the best deterrent against any such bid at this stage and a farm out on sensible terms is the most likely near term outcome.
The recently discussed deferred drilling costs on re the drilling ship may also be a factor in %s. If we "cover" a share of the costs in that way, then the farminee takes less risk and therefore a smaller share.
Majid seems to be a wily old fox on financing .
Juxapose,
In your opinion it is not applicable. I agree that there appears to be a disconnect between the market CAP and the Intrinsic worth. But there's a lot of truth in the saying that its only worth what someone is prepared to pay.
Harold - No I didn't say that at all - to clarify the boy wants 43 large slices of PIZZA. If he can buy 8 slices of PIZZA for 8 pounds - why would he pay 43 pounds for the same PIZZA just because you've sliced it into 43 pieces - simples.
Anyway - I think we have flogged this horse to death - we'll have to agree to disagree.
Tonny, ill explain to you what you write, instead of giving 43 slices you wrote that youll cut the same pizza to 43 mini slices to buy the bike.
And if you are talking about post farm out as you wrote then no need for the 35mp.
The reason why no one is following your logic is because it is non applicable in these circumstances.
On a farm out, the "pizza" is the value of the specific prospect and not the market cap of I3E.
In this case, there are three "pizzas" and none has yet been cut into any slices: that is the farm out process.
What the participants are looking at is the size of the prize and its COS.
At the appraisal stage, farm outs are generally less punitive, particularly, as in this case, where it is not a "distressed sale" thanks to the £5 million raise in December, to carry them through this current year.
Juxapose,
"Why waste time discussing what is NOT being proposed? Of far more interest would be to discuss possible participants and terms .........."
That's what I thought I was doing but no one seems to understand the calculation - maybe I need to do my Pizza analogy -
Ok - you have a PIZZA with 8 slices and you want to swap it for a bicycle - the boy that owns the bicycle wants 43 slices of PIZZA to make the swap (8 + 35). You don't have the 35 slices so you have to borrow the money off your mum to buy the additional 35 slices of PIZZA ( by farm out, not equity raise - because your a boy and your not allowed to do and equity raise). What percentage of your Bicycle does your mum own ? - simples.
"The Company is making good progress in its farm-out process to fund a 2020 appraisal drilling program on its assets in Blocks 13/23c in the UK North Sea. The data room is now open and companies are actively evaluating the opportunity. i3 will update the market as discussions progress."
Why waste time discussing what is NOT being proposed?
Of far more interest would be to discuss possible participants and terms and I would not rule out a sale of the whole company, given the current market cap.