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Meta4, Your assertion that before restructuring 87% of shares was with Australians is incorrect.
You probably don't realise it but before the recent restructuring, 83% of shares were owned by Australians. Those shareholders had seen their company get taken over by some corrupt dealing by the holder of 16% of the company who then gave it to Igas, telling holders this was their best chance of getting value for their investment. And Australians were not able to sell their shares or buy more. All they could do was watch their holdings lose 97% of their value. But after the 20:1 restructure, even if the SP goes to 1000p (fat chance of that), it will still be only 38% of what it was when we became unwilling holders of Igas. Then
You think these will have rise from 55p to £10 plus this year !??? That's some return
Jeez, Meta4, we get it.... you lost everything when Igas swallowed up Dart for a pittance and rather than buy in now (when all the big players have invested - TEOG/KKR, Kerogan) and make a fortune as this share turns from APPL in 1980 to APPL in 2017 you'd rather just keep hating on Igas. In reality the acreage that Igas has from DART will come good v soon. In only a matter of months the first flow test results are in and Igas will be on a heady climb up to 1000p+ which is why I fail to understand why someone would sell at the bottom and then make their one & only post about it.
The way I look at the business is simple; £230 million of 'other peoples money' will be invested on Igas assets. That will create a value of at least today's valuation, butpotentially a multiple of what these professional parties invest (else, why would they?). That means it is quite a good share to buy at todays share price; even better at lower prices! Actually, the more I think of it, the more convinced I get!
"The fact that the ticket gets cheaper is an opportunity. " The only opportunity is an opportunity to lose even more money. Why would anyone want to buy into something with a losing track record like this? Losing investors' money every day for nearly 4 years now and showing every sign of losing a lot more. When/if this sinking ship ever turns around, there will be plenty of opportunity to buy in.
The gact that the ticket gets cheaper is an opportunity. The game to come is still the same game. Geology has not changed. If you dont believe in that, yiu shouldn't have invested in the first place. Sorry for people that lost a lot, but I only have an opinion on 'today' share price,+/- 10cts It's really cheap! If it goes down more it is even better. In 3 years is will be valued at an multiple.
"This is a very cheap ticket to a very big game." The thing is that every day the ticket gets even cheaper. People that have been holding have seen it get to only 3% of what it once was ... and since that 1:20 consolidation, it's doing that all over again.
Just ignore SiK. It's no coincidence that the post coincided with Canaccord's ridiculous uprating from 11p to two quid. On that announcement the price immediately dipped. The market seems to think that Canaccord suffer from what's known as the anti-midas touch. All the gold they touch turns to s**t. What a joke.
@jdm33: If you're talking about me, then you're completely wrong. I've been a holder of IGAS for years. I put £10k into it and was left with about £300 which I closed out at the end of last week. I don't post unless I have something to say - which is why I said I'm out. I'm no faker, I've just had enough of wasting my time in a going-nowhere share. I should have got out a long time ago. I totally agree with Meta4.
At this level it seems good value. Taking into account all the legislative changes now implemented, EIA's conducted, field work, sites selected, permit procedures status and the restructuring of balance sheet. Also the carried development of shale for IGas for £200+ million. The conventional business has also been restructured and reaches break even at far lower price levels then previously. This is a very cheap ticket to a very big game.
How naive you would have to be to imagine someone exptressing a negative feeling has any effect at all on the share price. The company's actions (or lack of them) has been pushing the SP down for nearly 4 years without any help from anyone. It's hard to ignore an unbroken losing streak that's shed 97% of the investor's value for over three years. But you managed to.
funny how there are suddenly lots of fakers on here with one single post *ever* on Igas where they say 'that's it, i'm out. sorry guys'. Yeah whatever, fakers. If you're trying to get the SP lower to close out those shorts you should have opened them at 80p. Too late now!
following this for some time, patience has run dry, I'm out. GLA.
Dear me, so sweet of you to join our discussion AuntieFrack! Thank you for your guidance. Indeed, it is not totally 'free'. There is some money involved. They need to pay a couple of acres rent for the pad, not for any around it though. Indeed, there is a 1% fee to the community, which is very handsome. And then the 100k to the community + 2000 per lateral. This could well be many millions per well pad, if the super pad strategy materializes. Let's hope so! If the Bowland is proving its potential though, the value would be anything between 1 billion or a heavy multiple of that. The Capex to get to that position was xtremely low. Still, thank you for your enlightening insight into the cost per acre.
The land in the UK comes for free? No. Companies will lease the land from landowners - at a price. They won't have to pay royalties as in USA but they will still have to lease the land. Let's assume a fracking pad is 2 hectares; that's 5 acres. What will be the rental for 20 years? You decide. Oh and under the shale community agreement 1% of sales revenue will apparently go to communities (Ineos say they will pay 6%), so that's 1% of the profit straight away. And a £20,000 payment to a community for each and every lateral drill. Let's assume 14 lateral drills on a pad, as Ineos is predicting... that's 14 x £2,000 = £28,000. Hardly 'free'.
It's a bit ponzish to state that investors need to be "patient" knowing that IG shareholders have lost their investment don't you think? I'd understand your statement if the SP had stalled at 50 or 40p. But the price sank to the bottom and turned to dust.
In the US for the Permian they pay between 30.000$ to 50$k per acre. In the UK it comes for free. So the industry will be structured financially on a completely different basis. For the UK you need patience. Unfortunately that can not be expressed on the balance sheet, but depressed share prices show the impact. Once started up, the value of the acreage becomes apparent. For that reason the upside is enormous.
No pain, no gain?? More like No gain for over three years and all shareholders are down the drain. Despite having such positive fundamentals and restructuring the company to stiff all old holders, the SP is down another 30% and still sliding. There's nothing at all positive about a terminally sick company like this one.
This is old (two months ago) news. Reuters reported on it with a quote from BHP's CEO: "If you had to turn the clock back, and if we knew what we knew today, we wouldn't do it, of course we wouldn't do it, but go back and put yourself in our position at that time" http://uk.reuters.com/article/us-bhp-shale-idUKKBN19K1UZ Fair to say that shale in the UK is going the same way for investors. Hence the very wary Barclays statement at the last AGM.
Having lost 97% of my investment in this over the last 2-3 years, I've had enough. After the recent consolidation, the shares would have to hit £26 for me to break even so I'm changing my focus to the mining sector; specifically to lithium, gallium and indium (along with high strength aluminium producers that can potentially produce stable hydrogen volumes that could result in better electric car batteries dyor). The 3% of the investment I had left is now in lithium mining. Let's see where that goes...(probably just as bad when some scientist discovers that there's something else better out there!) Good luck guys - sadly, I'm finally out.
"Paul Gait, analyst at Bernstein, backed BHP’s move to exit its US shale assets. “[We] welcome this as a step in the right direction given our belief that oil is not a natural fit for the BHP portfolio,” he said." This is not quite what Auntie Frack said. BHP are miners not drillers.
Yeah it's all wonderful in the US of A. BHP Billiton to sell its US shale assets to offload the underperforming business. http://www.bbc.co.uk/news/business-41008227#
No pain no Gain, All the fundamentals are in place including negligible debt. Sentiment dented due to lack of news but IGas presumably happy and prudent to let Cuadrilla to do the trailblazing. SP could rise extremely quickly on positive news on unconventional Gas deposits (IGas or Cuadrilla) or additional confirmation of being cash positive on existing producing conventional Oil resources. DYOR
It's proved...fracking causes babies....US research shows increased childbirth rates in In rural pockets of Texas, Oklahoma, California and Pennsylvania, where families connected to fracking are reproducing at a rate that far exceeds the national average. The report's authors, Melissa Kearney and Riley Wilson, say this most likely reflects a feeling of financial security, giving families - particularly those of lower-income background and low education - the confidence and freedom to support a child if they wish.