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I heard just over £4m for total overheads. Listen at 13mins and 50 secs

@MrJinx I don't see a statement of that sort in the Year End RNS. What I do see in the final results is the following ;

"Debt free with a cash balance of US$19.8 million as at 31 December 2018

· Fully funded for current work commitments - less than US$1.0 million

· Annual cash overhead remains below US$5.0 million"

What they don't say is that they have a circa $6.75m payment to make but perhaps it wasn't believed to be so large and has only more recently come to light. That said it doesn't look very good on them because at the very least they should have highlighted a potential undefined charge was to come.

That said, whilst marking their card, one should not allow this to distract away from the message that this charge is now behind them, the balance sheet can handle it, and despite your concerns, there remains no need to raise cash if LIxus is concluded this year/early next, and they achieve the appraisal(s) drills as part of that package. I would hope it would be more given the strength of the asset at 2Tcf and possibly circa $200m in netbacks per annum.

That is my focus because right now CHAR continues to be valued at cash and there is nothing in there for Lixus, which is a very strong asset. At 26mins and 22secs the CFO is clearly indicating that the partner process is goinhg tocome to a head shortly.

When it does and it delivers drills, then the current valuation will be long gone, undeclared charge or not.

Ok so te CFO has delivered as I had hoped and explained the $6.75m figure in the accounts as being a payment ot the Prospect S creditors.

He also explains that those costs are now fully paid and there will be no further cost in this regards in H2. He adds that the company expects a "small chunk" of cash coming back into the business in the shape of a VAT return to be paid to the company in H2.

Therefore, from what he say about total overheads being "just over $4m" we should be looking at the "less than" $1m of seismic procesing for Lixus and the ongoing operating costs of around $2.2m, for H2 2019.

That would place the company at circa $9m by year end, so Christmas.

I am more than happy with that as I feel that is the period where the farm out will come to a head. Even if it doesn't, the company would still be fully funded for 2020 at the current burn rate. So if they allow the other assets to float until the neighboring prospects to them have been drilled, then CHAR should have enough cash to get through not only the farm out but also the appraisal programme on Lixus, in whatever form it ends up taking. My gut says 2 wells.

Well worth a listen from 12mins 30 secs onwards but CHAR look to have set themselves up for a very good shot at this.

https://www.chariotoilandgas.com/wp-content/uploads/2019/09/Investor-call-25.9.19.mp3

My gut feeling is that if successful, I3E will farm out 50% of Serenity to Respsol/RRE.

That would take the finance and debt question off the table and de-risk I3E through LIB phase 1, which in turn would unlock phase 2.

Tain is planned for a 2022 first oil with final development decision planned for mid 2020 and a tie back to Bleoheim, just like LIB phase 1 currently plans.

Tain has to date circa 13mmbbl of recoverable oil.

Unlocking anythinhg close to those 69mmbbl in Serenity would make a farm out of the asset to either of those parties, a win/win for all. I don't buy the vultures swirling argument because push comes to shove I3E could shelve LIB phase 1, and employ the same oil capacity to tie Serenity straight back to the Bleoheim. Its only a further 10km away.

If Serenity is capable of flowing bigger wells thanLIB phase 1 and so renders the Bleoheim too small, then that can never be a bad thing now can it.

It is important to remember that these assets are all tightly packed together and I3E will have options to take a mix that suits, bhe it that yes it may take more time to develop. However, if the oil is proven then the funds and the value will be there too to support them through that potentially extended period. I3E does not have to hit first oil in 2020 to survive. It is merely the first plan, the newest plan, and best one until the results of S1 and A3 are known.

That all said I still think LIB phase 1 is a goer but need to digest the update on the field from I3E when it comes.

No riposte from me. I respect fully what Spike501 is saying. I am not here to win every argument or drive my rhetoric only.

I have previously shared evidence, be it limited, that any senior debt facility, would likely include other assets even if not forming part of the first development.

That aside, I do think the thinking around LIB phase 1 is too rigid right now. The company can change the plan if the plan is worth changing, and it leads to a better outcome for shareholders. It may cost a little time maybe even a little dilution but the one thing that a solid find at Serenity can do, is substantially de-risk the business by diversifying it into 2 field locations.

That has worth, which along with the physical barrels of oil, would drive substantial share appreciation, which would offset the debt to value ratio.

Furthermore, if Serenity demonstrates that it is the play that the company believes it is (WH Ireland talk about 69mmbbl recoverable), then the SP should push to levels that allow the junior debt holders to start exiting their position through warrants. De-risking the business even further.

At 93m shares in issue, it isn't going to take much to push this towards 75p - £1 mark, given we are talking far more resource, and much less risk.

Around that sort of mark I would expect warrant holders who are sitting at a 48.1p average, to begin to take advantage of the situation, if not before. That's why I really do like the debt funding. If successful on Serenity (and its not guaranteed), then said success with such a low total shares in issue base, should flush out the debt or at least lower it to far more manageable levels. Hence why I say this is about success with the drill bit and not the debt right now.

Production is of course important and right now there is nothing in any of the words from I3E to say that LIB phase 1 isn't going to happen but aI struggle to conclude that a solid positive outcome could be anything but a big positive for I3E, with or without a confirmed phase 1 development plan in place, at the time when it lands.

It is possible that LIB phase 1 ends up needing either Serenity or a revised A3, to get it over the line but I don't feel it is that far away anyway.

I have been invested in BMN for a good number of years now, ever since before it dropped down to its lowest ever point in value.

The BOD of that company were and continue to be accused of poor PR. My view was always that its not about driving the story its about delivering it.

Talking a good game will push a shorter term reaction but delivering will ultimately provide the greatest returns.

BMN management have always been thorough in their approach, delivering updates less often but including far more detail. It was for me always a sign that they meant business. That their focus was on the achievement and not on the desire to be continuously congratulated.

I see the same traits with I3E. The focus is not the SP, or short term support for concerned PIs. The focus is delivering and protecting shareholder value along the way.

Investors may have complaints about how long it has taken to get to this point but just look at the set up. We are talking maximum 155m shares in issue on a fully diluted basis, setting the company up for a debt free run at production in 2020.

Achieve that and dilution for existence is over. It is then about dilution to expand, if indeed required at all.

Take a look around the AIM oil competition and tell me who has the chance of 15,000 - 20,000 bopd production for circa $90m CAPEX, and only has 155m shares is issue.

Just like with BMN it takes time and patience to set up a business for such achievements. They don't happen overnight. That is the casino mentality, and they don't come without cost.

I love the fact that the BOD has seen its 40% share of this business halved to get to this point. That makes them hungrier and more determined to put any mistakes right.

PR has its place on AIM but give me silence interrupted only by solid progress, achievement and cost control, anytime over that.

Just go ask BLOE holders what all the PR from their CEO is doing for them.

For me its all about protecting the cash pile through to Lixus farm out, then its about the deal. How much they feel they need to give away and for what.

I know that longer term investors feel this BOD can't close a good deal but, and its a big but, they never had a Lixus before. There is the advantage and there is the contrarian opportunity.

Yes they could still produce something bad, but they have the percentages very much in their favour. The risk reward is therefore very strong at these levels.

Lixus is clearly a strong cash generator at even a 2 well production development. It should be fairly low cost to get into production given it is commercial at the most pessimistic ends of the curve, and the interest is "strong," which lends itelf to competition and therefore a better deal.

All other projects should take a backseat until that deal is done and for me until the finance is in place to get through to first gas.

They are a drain on resources that will only lead to substantial dilution at too low a level, in return for far higher risk.

Get Lixus closed out and well.

Morning all,

Having read through the report, I would firstly say that it is disappointing that the cash balance has reduced by so much in the period.

From the accounts we see that the actual loss for the period was in line with management's costs guidance, at circa $1.87m.

The majority of the cash outflow has been driven by the "Payments in respect of intangible assets" at circa $6.75m. There is no note against this item and I would like to hear more from the CFO on why this figure exists.

However, at $12m plus still in the bank and actual administration costs under good control, there is still plenty in the tank to see the company through to a partnership on Lixus, and this is supported by the company quote posted by O&W below.

Others may wish for other developments here but for me this is all about Lixus and 2020. The cash pile as it stands should see them through the farm out at the very least, which looks close.

That $6.75m is certainly substantial compared to 2018 total cost for this item, and so it leans towards a view that this cost would be a lot lower in H2 2019. However, the CFO needs to explain that. However, for me once that Lixus farm out hits, the position and value changes substantially here.

For em the interview from last week with the CEO is far more telling than this report.

In that interview the CEO talks about the larger companies wanting to see "additional running room," which last week's CPR helped deliver plus! some of the parties taking part have identified further leads in the block, which CHAR are now investigating.

That alone helps demonstrates the level of interest in Lixus and its potential.

Furthermore, he says ;

"taking the most pessimistic production/reserve case and taking the most pessimistic cost base, it is still a commercial project"

"we see the Anchois field as being commercially very attractive and certainly that is the feedback we are getting from both the upstream players that are working with us, and its technical feasibility. That's feedback we're getting from midstream/downstream engineering groups that we might join in some strategic partnering as we progress the project."

On the question of interest.

"Yes very strong interest"

The target remains for H2 2020 with up to 5 wells being triggered upon partnering but only an appraisal and a re-opening up of the Anchois 1 discovery well required, to achieve the 2 well production scenario.

Love or loathe the management, CHAR has landed a great development. That is why I am here and why I am prepared to await the outcome, which for me could come any time soon.

https://www.proactiveinvestors.co.uk/companies/news/902943/chariot-oil--gas-reports-more-than-2-tcf-of-gas-at-morocco-project-902943.html

@Olderandwiser Thank you for your insight, it is appreciated.

I can offer no opinion other than the fact that this LO selling started 6 weeks prior to the spud of L2, and that they have had ample opportunity to sell much more than they have, and at better prices, even after the L2 result.

So it certainly doesn't look like a distressed exit.

@kevmb No please speak up, share your ideas and don't be afraid to do so. This is a BB for all I3E shareholders not just the loudest and most positive ones.

For the first 2 years i was on LSE I never wrote a word. That doesn't change unless someone starts tapping away on that keyboard.

Here's another key section from that WH Ireland report ;

"Most importantly for the prospectivity of Serenity and Liberator extension, during the most relevant geological times (Mio-Pliocene ; 23 - 2 million years ago) the regions dip orientation to the South was steeper. This would have encouraged oil migration from the Blake field (where oil is known to be present) to the North and in particular towards the Serenity and Liberator Extension prospects."

"By extension, even if the current structural maps are modestly inaccurate (and there is no oil communication between the relevant fields as I3 Energy has modelled) oil should still have filled Serenity and the Liberator Extension during the Mio-Pliocene."

I3E is aiming straight for a middle section of the widest part of Serenity, as close to the Tain border as possible and the 4 successful drills that exist there, and 69mmbbl of recoverable oil is potentially at stake, valued at $518m, and the market would have me believe that opportunity is worth just £20m today.

But what about the debt BBN?

In my humble opinion, the debt is of no serious consequence if the target is hit because the whole picture changes here, and WH Ireland, be they house broker or not, is explaining that the geology points towards oil migrating to both Serenity and the Liberator extension, both of which are scheduled to be drilled, and I3E has a very good chance of hitting it even if their model isn't 100% accurate.

@kevmb In my opinion, if you allow yourself to sink down that particular rabbit hole then it will only lead to poor decisions based on yet more rumor. The market is there to be made and it is based on opinion from both sides of the fence, driven by whatever it is each side believes or wishes to believe.

That is why it is best to stick to the facts and test any negative opinions thoroughly. I welcome these bearish statements because the ability to test them and conclude that they are not based on the facts as they exist, actually strengthens the investment case. When that is no longer the case then we must look to change course and not become wed to the stock.

Right now that s not the case but wills and convictions are certainly being tested to the full.

There is an opinion out there in the wilderness that Serenity is a exploration drill. I can see why it would be envisaged that this is the case.

The issue I have with this is that said argument ignores the fact that both L2 and A3, as a minimum, are appraisal drills.

So the "expo drilling is pure madness with debt funding" statement that I have seen, is floored from the start. The debt funding is for 3 drills, of which minimum 2 are appraisal.

As for Serenity, the company is applying a 72% COS, that we know. Some may wish to question that figure, as is their right to do so.

WH Ireland, i n their note from 10th January 2019, attach a 56% COS to what they call the Serenity 'prospect.' They claim in their note that they have carried out a technical study of Serenity.

What they also go on to say in their Tain Discovery section (page 3) is that ;

"Tain and Serenity are expected to be in pressure and fluid communication"

"we believe that in general pressure data is particularly robust for the determination of oil water contacts. This is critical because if the oil water contact occurs at 5,270ft, it implies that Serenity is filled with oil down to that depth."

Under Tain Production data they conclude ;

"This data corroborates the concept that Tain and Serenity are effectively a single reservoir in pressure/fluid communication"

Anyone and everyone can choose to ignore those findings but rightly or wrongly, they are as independent a view as there is right now on Serenity, and that view is supporting I3Es argument that Serenity is an extension of the Tain discovery, and so carries a high COS.

We can get into the technicalities of whether it is an exploration drill or appraisal if we must. However, that isn't what is key here, its about whether we buy into the data, which is pointing towards a connected reservoir, that just happens to be separated by a block border.

For my sins I very much like the Serenity prospect/exploration/appraisal drill and at a WH Ireland best case 69mmbbl of recoverable oil, with a discounted NPV10 of $518m, it has the potential to be a company maker, and is certainly not driven by madness.

https://twitter.com/Alexios1201/status/1175775292608172034?s=20

@Kevmb That is no to say that I don't appreciate your kind words. Thank you.

Morning Kevmb.

To be clear, my drive here is to defend the facts and fundamentals as they stand and not allow hearsay or opinion to swamp them at a time when I3E investors are hurting the most.

To read such things as "expo drilling is pure madness with debt funding" and that I3E is in a debt spiral, is simply wrong because the facts as they stand do not support such an argument.

I have over the last few weeks attempted to demonstrate the facts as they stand, and those facts do not support either of the above arguments, nor the insinuation that Liberator has no commercial oil.

I do not understand how such conclusions can be made, when the company hasn't even had the chance to report back on its Liberator findings and complete its 2 remaining drills. It is simply too early in the process.

To be clear, if in the future the facts change and in my opinion it has a detrimental affect on the investment case, then I will say so. However, I3E is a long way from that right now. Can everything go wrong? Yes of course it can, just like with any public company and in particular those on AIM. The bear case is always sitting on our shoulders.

As I have communicated already here, I3E has up to circa $16.5m in cash, which it can employ to meet its 2019 obligations.

The junior debt facility commenced on 3rd June 2019. It is highly likely that I3E have only drawn down what they need in order to meet their invoice requirements to date. I say this because it is the most logical corporate decision, which is in line with my own experience in business.

Therefore, the costs for 2019 are not key and there is no evidence that I can find to support a spiral debt scenario at this time. I3E did not raise exactly what they needed, they raised what the business required to get them to the next stage of development.

To be clear I am not saying there is no risk here and everything is going to be alright. Nor am i encouraging anyone to invest.

I am presenting the facts as they stand so anyone interested can read it, research it and decide for themselves.

I am already invested and the facts as they stand today encourage me to remain invested and allow the company time to deliver what they have planned to do. At the end of the day I may end up being wrong but that is a chance I am willing to take because I believe my research to be thorough, to be right, despite the noise being generated to the contrary right now.

As expected the cacophony of negative noise across social media is alive once more, as the news Lombard is selling further, drives the bearish voices out of the woodwork once more.

If you are an investor in I3E and you came here for a reason and are staying for that reason, then now is the time to check and double check that reasoning, over and over again. Otherwise they risk being drowned out by the noise and smoke that is being generated.

It may well be that some of those voices are well meaning or indeed have a very valid point, but the starting point has got to be the fundamentals in order to gain the necessary clarity and to understand what is worthwhile and what is not.

Have they changed? Does Lombard selling affect I3E ability to move forward with its drills? Are the funds there to drill? Does it truly matter if the stock is worth 22p 20p or 15p, if the fundamentals have not changed?

When the noise is at its loudest is the time to check, double check, and check again.

Just my opinion only.

The #I3E supply ship Hermit Fighter commencement date just got updated to tomorrow.

https://offshore.clarksons.com/

See term contracts page 2 for details.

@Backwoodsman Good morning.

If you are concerned by the current difference between the two then it if not for me to convince you otherwise.

My main point yesterday was that investors should be careful allowing themselves to fall outside of the known parameters. Those currently sit between 56% (WH Ireland) and 72% (I3E).

Personally, whilst WH Ireland state they have studied Serenity from a technical point of view, they cannot have committed the same level of technical expertise or indeed time, that I3E have.

So it comes back to the trust issue. I accept that Serenity comes with significant risk but my position is one of trust in the company.

Much of the mistrust that now exists with I3E stems back to the L2 drill and the 90% COS myth.

So take a look at the enclosed article below, which was published shortly before the L2 commenced.

In that article the following line and quote from the COO for I3E, John Woods, is key ;

“On the Liberator field he added (John Wood) : "With these wells are looking at a 70 to 80% success rate, so we’re hopeful.”"

Now we know that the A3 well carries a 70% COS from the CPR written by AGR. Therefore, a simple process of elimination says that they expected the L2 to be around 80% COS. Hence why he said "so we are hopeful." However, they never added this COS to their June presentation , nor talked about it at that time either.

80% is still a very high COS but it isn't 90%. It can still go wrong but it does not automatically undermine the model, and certainly not the model on a completely separate structure, that has been calculated with the data from 4 successful wells.

What it does quite categorically do is remove the 90% COS myth from the equation and makes that somebody else's idea.

So in my opinion, the least that investors should be doing is basing their judgement of the COS on the next 2 drills on that 80% figure and not 90%, as some still wish to believe.

https://www.energyvoice.com/oilandgas/north-sea/205282/i3-energy-set-to-begin-drilling-work-at-north-sea-liberator-field/

The above article was written in

Here's my tweet on Hermit Fighter supply vessel.

Contract booked to re-commence from 26th Sept 2019. Would it be carrying the personnel back to re-mobilise the Borgland Dolphin by any chance.

Previous contract started on 13th August, the date the permit for the rig location was approved.

https://twitter.com/BigBiteNow/status/1176138972365512705?s=20

There are currently 2 stated opinions on the COS for Serenity. The company states 72% COS and WH Ireland back in January, who stated 56% COS. The following is a copy of another tweet from Alexios at the weekend, who was kind enough to share the WH Ireland note at the weekend.

https://twitter.com/Alexios1201/status/1175774762460745729?s=20

Investors can make their own mind up as to what and who they believe and what percentage COS is correct.

Personally, I believe it to be a dangerous game to be moving away from the boundary of these 2 figures on nothing more than a whim or so called intuition.

My position is that I trust the management and their combined experience and professionalism. A mistake has been made somewhere along the line on L2 Liberator, but that is no reason to throw the baby out with the bath water.

Serenity is a separate structure altogether and I will continue to treat it as such until evidence is presented that changes that stance.

What we have here is 2 blocks that to me look very much like they share the same oil field, be it they have each have a different name and operator.

Slide 10 of the January presentation is clear when it says Serenity is "interpreted as the westerly extension of the Tain Discovery into Block 13/23c."

Not only that but said oil field, if indeed connected, already has 4 discoveries in it.

One failed pilot well on Liberator does not suddenly change that for me because there is no justification top do so other than fear driven by opinions that do not carry fact.

Does the management have something to prove? Yes they do.

Does a failure to hit oil mean all data and work that has gone into the last 2 years, should be thrown in the bin? No it does not.

If Repsol owned both blocks and had the data that I3E has to hand, would they have drilled their first well where they did, or would they have centred it around the S1 location or even further West? In my opinion it would be in the S1 area for sure.

So I am very much in the closer to 72% camp than broker playing it safe 56% one.

This is particularly true when I read the WH Ireland update and see the words ;

"The Serenity prospect is unusual to the extent that it is supported by a wealth of cross disciplinary data vs the typical geological approach."

"In our opinion, drilling the prospect is more likely than not to result in a success, which is exceptionally attractive for a prospect containing circa 69mmbbl of recoverable oil."

For that WH Ireland values Serenity at an after tax NPV10 of $518m at Brent $55 per barrel.

I3E current valuation just £22m.

Whatever the final COS. That sort of data backing a connected field with 4 successful fields so close to Serenity drill location, means that the disconnect is just too big, so something has got to give.

https://twitter.com/Alexios1201/status/1175775292608172034?s=20

https://twitter.com/Alexios1201/status/1175775292608172034?s=20