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I3E have bought Toscana's debt from the people that lent it to Toscana.
There's no 'debt facility' anymore, no debt headroom to borrow monies from - I3E are now the debt holder.
Freshair, why do you think the debt facility is debatable? Haven't we bought a $28m (CAD) debt facility for $3.4m (CAD)? And we've purchased the company and all its assets for a further £300k at current share price value. Or am I missing something?
freshair 3% is a notifiable interest!
afaik, >3% is notifiable within 2 days to i3e and 3 days to the market via DTR5 and TR-1.
29p avg.
So, just less than a notifiable interest? So how much cash was involved?
You would have thought i3 should have concentrated on Serenity and Lib. Perhaps we already have a deal as far as a f/o goes. Whether we have a debt facility as part of the Canadian deal is debatable since Toscana defaulted. This is probably just the beginning as a producer in Canada. When we appraise Serenity I would expect the reserves to qualify us for the RBL debt facility. If there are distressed producers in Canada, I certainly wouldn't object to there takeout.
I hold more then 3% of the company.
harel, i didnt sell out, im by far the biggest pi in this company. How do you know this? How much do you have invested?
CAR3Y can you explain reasons for your objection?
Are you a shareholder of I3e?
There’s no way this Toscana deal gets past the Canadian oil and gas regulator, Im just in the process now of composing a letter to them why I3e isn’t a fit and proper oil company and shouldn’t be allowed to complete this deal.
GGG,
You wrote: I agree with some other posters this deal on its own isn't anything to get excited about, but it does have a number of strengths, namely: access to debt facility / funds
And: additional leverage in f/o negotiations.
Can you please explain what leverage it provides in your view and what do you mean by access to debt facility.
My understanding is that i3e is buying a debt of around 32mc$ that has already been spent to add to its existing debt.
NKOTB, yes sadly we've had another leaky ship example. The fact another poster pointed out it was likely US buyers driving up the SP last week due to the time when volume starting picking up appears to be incorrect only in so much as it was most likely Canadian buyers. Hopefully we'll see another surge in the next week or so prior to a f/o being agreed :)
I agree with some other posters this deal on its own isn't anything to get excited about, but it does have a number of strengths, namely: access to debt facility / funds, access to another exchange (liquidity), additional leverage in f/o negotiations. The f/o is key to this mcap returning to circa 20p levels. If we can get a free carry for 50% of Serenity then we're back in the game. Hopefully Repsol, RRE, Serica et al. are circling for some additional leverage in our negotiations. If they can secure that f/o and it's an easy 2-3 bag from these levels.
Agree,
"so i wrote that in my opinion they would go for this deal only if they were to know they gonna make a good farm out deal...."
i3e will be looking to add strength to their negotiating position with this deal on farmout / sale imo ..... even if they improve the offer in terms of what the capital outlay for Toscana was .... its a win, win afaic. Somehow, I now think return on this strategic move will be paying dividends far in excess of our outlay as we write.
PS ..... As for SP movement last week .... our ship did in deed have many holes.
So barny, your assumption is wrong, not only i didnt sell out, im by far the biggest pi in this company.
You and your toyboy are so ignorant you dont understand whats ramping and deramping!
I wrote the break even is amazing and that there is a 100m recoverables potential, lets say it as it is, you both dont understand what it means and probably didnt read the update fully.
So this has a potential to create a lot of value (as i wrote as well) if you can fund it!!! And in that regard i3e is dependant on a good deal in serenity, so i wrote that in my opinion they would go for this deal only if they were to know they gonna make a good farm out deal.
In any case im in for serenity.
He clearly sold his last week and hoped to buy back cheaper,now having got caught on the outside looking in he’s worried he won’t get his re-entry its as simple as that.
isn't it amazing how a certain individual can suddenly go from ramping the t*ts off this company a week or two ago (having first loaded themselves up) to now putting the company down which is after (one has to assume) having now sold out
I think for the majority of people who hadn't already seen through hindsight harel and its MO they definitely have now
best filtered and ignored IMO
plonker :)
Toyboy, you obviously dont understand what you read!
Wont waste my time explaining basics, move on...
The +ve cash-flow this deal generates will allow i3e to negotiate from a much stronger position on sale of our major assets.
bod need to get on the road and really start plugging the benefits of this deal. A breakdown of the deal and how they intend to utilise the debt facilities would be welcome. Far more important is an update on the f/o process and how this would work with the current deal. On its own the deal is ok. It gives us access to another exchange (more investment potential) and immediate funds if needed. But it won't pay for Serenity on its own. If they can secure a f/o for Serenity they will be in a very strong position. They will hopefully have a free carry on Serenity, and once drilled (field / model proven), they can buy back their 10% and potentially go it alone on Liberator. I wouldn't like to see them try to go it alone on Serenity. A bigger player that de-risks their position and ensures the field gets appraised and developed within 1-2 years is required. If they can secure the f/o we will be one of the few oilies that will be making ground swimming against the tide, which we know is going to turn at some point in the future. Will be interesting to see if the bod gets on the road with this or if they sit back and try to push harder for the f/o before covering all the good news. If they can secure the Serenity f/o it will truly be exciting times.
When ill need your investments advice ill contact you toyboy..
Not realy a reason for big buys, big debt to serve for a mini small cap like i3e and a small scale production of 1k bbopd.
The break even is amazing as its an onshore field and oil is in c. 500m depth.
The rational of the deal as i see it is the potential expenditure as the field has a potential of 100m recoverables and with higher oil price in a year might create significant value.
The key of making this deal a good deal is investing and ramping the bbopd and that requires money.
If i3e sees itself as a company that can provide the means to expend the production rate, it must be sure they are gonna make a great deal in serenity, else its a joke on our expence.