Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
So looks like suspension lifted in September (maybe July). The new acquisition should be good news for shareholders but the elephant in the room would be any new equity price and how much would need to be equity and how much debt. Remember shareholders will be voting on this transaction so it needs to be favourable to them. This will be a different animal with the 10k boepd and 65m 2p.
Refloat the company at 25p with 100m shares for £25m and £25m debt financing. Would leave a Mcap of £50m at 25p (207m shares in issue) and 70m warrants so potentially 277m shares (£70m mcap).
5. Will shareholders be invited to take part?
This is being worked on and is the Company’s preference that at such time as an equity issuance is offered, that it is also made available to retail shareholders.
6. When does the company envisage the shares being brought out of suspension and listed again on AIM & TSX?
If successful, the proposed transactions will result in the resumption of trading between mid-August and late-September.
3. What is the Board’s current strategy regarding raising $60m funding for the potential new Canadian oil & gas assets?
The Company is in discussions with its investors and brokers and is seeking funding for the consideration of the proposed transactions and general corporate purposes. On success, this could be achieved by way of equity or equity plus debt.
4. In particular, current shareholders are concerned about further extreme dilution. Can they be assured that these acquisitions are in the interests of shareholders and not just the directors looking for salaries?
The directors of the Company fully support the entry into the proposed transactions and believe they are in the best interests of i3’s shareholders.
1. When is a decision expected from the OGA regarding Serenity/Tain connectivity & unitisation?
The timing of this will be determined by the Tain Operator’s consultation process with the OGA regarding the Tain Field Development Plan. Prior to the approval of the FDP, the licensees in adjoining blocks have the opportunity to comment on the Tain Field Determination Area.
2. What is the current status of the farm out process for drilling Liberator & Serenity and is it still the Board’s expectation that drilling will happen this year?
As referenced on 23 June 2020, these efforts remain ongoing and engagement continues with potential farminees. Investors will note that many sector participants have made public statements regarding cancellation of all discretionary capital spend during 2020 as a result of the COVID-19 pandemic and a world oil price collapse that has yet to see a return to early 2020 levels. It should be expected that this would limit i3’s farmout prospects for a 2020 drilling campaign. The Company does have a number of active participants that could potentially result in a farmout offer, though the practicalities of operational preparedness and permitting will make drilling prior to winter in 2020 unlikely. i3 will provide further updates to the market as these discussions progress.
The AGM is next Tuesday 30th June at 1pm. Any shareholders not going can ask questions as per below:
Shareholders can submit questions to the Board in advance of the AGM by emailing such questions to i3energy@camarco.co.uk by no later than 1:00 pm on 26 June 2020. The Board will consider all questions received and provide a written response.
Toscana general meeting is at 15th September at the latest according to their paperwork yesterday. 12 weeks yesterday.
I see oil man Jim thinks the current shares are deemed valueless per his blog today..
In my view if this was true then the conversion of shares to Toscana shareholders would be pointless.
£0.32M (CAD $0.55M) Amount paid for outstanding share issue of Toscana / 4.4m (to be issued to Toscana in new I3e shares = strike price about 7.2p per I3e share.
“I3 Energy (I3E) announced news which appears to have confused many. Key point is that the warrant and management option strike prices are being reset to the nominal value of I3’s shares (£0.0001/share), which means that the i3 equity is being deemed worthless. The Canadian acquisition and any future North Sea activity therefore is of academic interest only now to existing shareholders. A few well known scammers were pumping I3E recently, trying to get stock away. If you got caught up in this, note the names and be try to be careful next time.“
Here is the bit about coming back to AIM
The acquisition is also a reverse takeover under the AIM Rules for Companies and is conditional upon the approval of i3's shareholders and the Company will be preparing a Readmission Document for the admission of the enlarged company to AIM following the Toscana Acquisition.
A recap on the potential here for a 6M mcap.
1 billion barrels in the Clearwater acreage (after i3e take up the option for Toscana next week) with a potential for 100-200 million barrels recoverable.
400 million barrels (200m recoverable) for liberator.
200 million (100m recoverable) for serenity.
All for a £6m Market cap company.