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Rollinginit, I share your view regards comparative valuations. Both have other assets, but RMP looks much better value than 88E given the marketcap and it's strong cash position - the only thing GB deserves some credit for. However, I would stress, the 400mln number worked up by Otto Energy for the target is 'prospective resources' meaning oil-in-place (OIP). The recoverable number may only be 30%, 40% if very lucky. Also we do not know how much prospective resource exists in the section of the Western Block that is not covered by 3D seismic. Cash
fter several years since I last researched this, I am back in with a small holding. I have no faith in GB since the Puntland cock-up days. However, I am here mainly for this new Alaska asset and, to some extent, willing to give the new CEO sometime to build a serious asset base, beyond Alaska. At this marketcap, the cash in hand and quality of asset they've just negotiated involvement into makes them look comparatively cheap imo. I care little for the other assets in their portfolio, they really do not excite me.
Nanushuk oil trend is huge and has been moving south/southwest of the giant Kuparuk River field for some years now. Many old wells drilled in the 80's and 90's had oil shows, the significance of which was not fully understood with old data. Armstrong have capitalised on this with the Pikka Unit and recently Horseshoe, which is a colossal 'step-out' from the main play fairway to the north. They believe the have uncovered a 3billion bbl oil play on acreage held by their consortium.
This 'western blocks' acreage is in a very good location. It sits between important oil discoveries - 1-2miles to the East of the major Horseshoe discovery and not very far West from Meltwater and Tarn oilfields. However, the most compelling aspect for me regards this western quad of blocks is the fact a well has actually been drilled into it, the Itkillik-River 1, which encountered oil in Shublik and other formations. 3D seismic & modern imaging seems to be indicating those encounters were in a poorly developed flank area with much better reservoir sands immediately south/southwest. This is what they will be going after, similar to Armstrong's strategy of exploiting old data.
Cash
Croz, I would hope they have not been sitting around since Jan and actually advancing the different options available for funding. Whilst Chrisoil and his ilk are charlatans, they do occasionally have a good source. I would hate to say it but the major funding maybe a little drawn out if the purpose of the roadshow is to raise interim funds/working-capital. This does not change the excellent low risk quality of the assets. Maybe just a little longer to wait at best, thus an opportunity for those who can hold longer than a few days/weeks. Cash
NC and GH careful not to give anything away in the interviews. Just listened to the vox interview again and GH was making clear any impediment in the discussions was now removed. But it's what NC stated near the end "we wanted this area awarded such that we can bring these discussions to a conclusion" really sums it up. I think we'll here something in the nearterm re funding. If they want to drill in Q4 this year, as they stated, they will not let it drag for much longer. Cash
General Levy, Fair point. Greater profitability given the current oil price. However, I3E must not allow this to go on for much longer as big Lenders will also start to look for ways to get more out of the deal. The amounts I3E are looking for are debt-funding figures, not equity dilution - anyone lending will know this and maximise to their advantage. Cash
Revoy, How can they? They have applied for a number of blocks. They do not know which of them they'll be awarded if they are not awarded the lot. There would have to be several scenarios to cover such an eventuality. Easier just to wait for awards, tweak if need be, finalise then announce a funding agreement. Cash
Brooko, Agreed. There is no way they would have stalled the funding progress on Liberator oilfield except for very compelling reasons. They pretty much indicate this in 31st of Jan RNS; indicative $200mln funding package for multi-well campaign encompassing Liberator development AND possible 30th round blocks applied for. We will know soon and one way or another they will have to announce funding for one or both of the above. Cash
www.proactiveinvestors.co.uk/companies/stocktube/7873/i3-energy-could-be-worth-north-of-150mln-after-cash-injection-7873.html This interview with I3E bosses is from last year but still valid. It really puts into perspective just how great the value proposition is here at 68p. Since this interview, the only things to have changed are oilprice ($75+) and the possibility of more licenses and wells. Cash
In the Liberator CPR by Agr, it makes mention of the area to the northwest of Liberator as holding some 10% or more of total Liberator volumes. It also mentioned I3E management were in active discussions with OGA about that area. With 30th round results due, I can see Liberator field getting bigger. If so, perhaps a more efficient route for LP2 producer. Cash
dreamchase, Yes that's mostly right. 30th round applications closed at end of Nov 2017. It was further consultations that ended at the end of March. Cash
What's exciting about the single counterparty indicating interest for the whole lot is, they are looking at 100% funding for a 'multi-well' drilling campaign on Liberator. Now imagine the savings if I3E were to merge phase 1 and phase 2 of Liberator into a single development. Cash
Agree, Liberator funding does not hinge on 30th round. But I suspect management maybe able to package it all into one more efficient funding agreement, once they know the outcome of 30th round. I see no other reason as to why a holdup. Again, from 31st Jan RNS, they had multiple options but one counterparty indicating commercial interest in funding the whole lot; "Pursuant to these discussions, the Company has received indicative commercial interest from a counterparty to provide 100% of the funding for a multi-well development on Liberator and the Company's 30th Round application block, amounting to estimated total capital commitments of approximately US$200 million". Cash
Yes they seem to be, in the companies own words: 23/03/18 Funding Update "Neill Carson, i3's CEO, commented: "We are pleased to report that we are making continued progress on our JV discussions with multiple industrial partners relating to both i3's 100% owned Liberator Oil Field and its 30th Round application. We look forward to updating our shareholders as agreements materialize." Cash
I think it would be foolish to try and second guess the OGA on the 30th Round awards. They have said themselves, Q2 2018, in a previous announcement. It could drop anyday, so those not invested or waiting on the sidelines to top up, could miss out. Cash
One more to compare: -SQZ Who would make for a very good comparison given their location, assets and production. Cash
It will be in excess of that imo. For those who doubt that; please look at reserves, production, debt and market valuations of the following North Sea oil co's: -FPM -IGAS -PMG Whilst not exactly 'like for like', it does give you an idea of the ballpark valuation is likely to be. Cash
Thanks Milcait, an interesting read. A mix of Heavy to light oils in Surprise and Nutmeg. Cash
Just got some after closing out elsewhere. I have RBD and now this for a good level of exposure to Wick license. Cash
Good morning all, Well that's the final straw for me. Extending a timeline is no problem is, aslong as those doing it have a good track record of success. Unfortunately, I cannot say that about the management here, therefore I have no confidence in them to deliver on this new timeline. I've sold the remainder of my position here. Remaining shareholders, watch out for dilution, but good luck all. Cash
The Whitman-Howard research note on RBD alludes to this. It says (in the context of Wick) they understand partners are assessing there options re funding. Even then, its got loads going for it. Cash