Member Info for David1951c

Thanks for the updates. Any mention of production test on well Amdigh 1? So much is happening (update 21 December) that it is very difficult to gauge what SAVP will be when it all goes through. There is more to come from the results from the wells drilled successfully last year. I guess I am not alone in wondering what SAVP is worth and SP potential.

At this stage with so many unknowns it would be very difficult to make any notional valuation. It is hard enough to make value comparisons with other companies which are producing but SP reflects Mcap which looks very low. Potential may become clearer when JV progresses.

The potential value IF everything happens on schedule and a good farm out deal is achieved should be a multiple of current Mcap of £25m. SP could rise over £1 and then further if drilling is a success. The way forward as outlined in the RNS is clear and a lot could happen over next 18 months to deliver significant value to shareholders.

News expected shortly and if successful there could be a further rise in SP. This is part of an area with massive potential with major producers.

Agree but it would help to have more clarity on when further operational and testing developments might be expected. Phrases such as "in due course" are so vague and given the board issues some investors are worried - can you blame them! I was tempted to sell and put more into i3 but held off. Does anyone have any idea when concrete operational developments are likely?

Probably finish 10% higher. It should be much more but sellers taking profits. Valid question on cash but with the proposed funding that hopefully won't be an issue. Mcap is only £25m so much less than some others e.g. ANGS. One important factor is the timelines and the RNS is very positive in all areas. With the JV process expected to progress in February, then ambitious timescales may be achievable. If so i3 must be one of the better prospects given the issues with others I hold AAOG and ANGS. I feel more confident that i3 will deliver after the others' stumbles this week.

The potential for expansion into huge USA market always looked appealing and hopefully the latest news confirms GAN could become a major player in coming years. SP increased significantly into last summer but showed steady decline towards the year end with not much happening and modest growth in Q2 / Q3. It is difficult to evaluate what this latest win means in terms of profitability as announcements seem good but lack details. Market is competitive. Q4 KPIs should be out later this month but the 2018 results will be a big test. Hopefully GAN will be able to further expand and gain more clients without major additional costs.

For anyone who paid up to 19p per share a few days ago have come out of this very badly. Stronger words can be used but what's the point. Why is the placing price so low? Surely 12p would have been achievable. The brokers and any large investors have been allowed a very low entry price mostly at the expense of smaller PIs. I feel it is a disgrace and shows the market at its worst!

The deal with LG announced on 10 December mentions $180m plus $130m on top of which there would be royalties for eventual sales. Why didn't they just buy the company? Other commercial license are already in place but without much info on financial elements (commercially sensitive?) with more to come. Against current Mcap the amounts could be large but it is unclear over what timescales these would be earned. Hopefully some income would accrue in 2019 / 2020 to avoid any additional funding requirements. The increase in major holdings is positive and should hopefully mean a stable SP going forward. Overall this should be a good investment but may take a few years.

Point taken, Bandit1. I only started investing on AIM a couple of years ago but in that time and particularly in second half of 2018 the AIM market has changed in my view. There are fewer or smaller spikes on some news e.g a spud and there is a lot more trading with consequent volatility. Bad news causes a material fall. When IOG share price dropped to low 20's recently stayed in but as mentioned I now felt the need to de-risk in part. I have not lost much against my average but risks need to weighed up. AIM is becoming even more of a casino and I have to manage that better. In future I will need to trade more although it goes against the grain. I believe IOG will come good and will keep a holding.

9.75 for David C

A short time ago IOG was one of my largest and most successful O&G investments having been one of my first two years ago. SP has dropped by more than 50% and the first gas put back by possibly a year. I am now sitting on a loss and sold half my holding because I am just not sure how funding will be managed without further impact on SP and I needed to de-risk. The issue for me with this and other AIM holdings is the increased volatility and volume of trading which does nothing for long-term holders. If I leave my investment in IOG I do not see any major upside until next year even if funding is sorted out. Any possible significant increase in SP at that point will just produce a spike and profit short term investors / traders. There is no benefit I can see in holding and I might just as well put my money into other companies with a nearer term operation and income and then buy back into IOG in 2020. I believe a great deal has been achieved by them to date at low cost but the way the market is at the moment makes it unrewarding to keep a non-income producing investment facing challenges in the months ahead. I have moved some into DGOC and RRE. Now reluctantly I might sell most of the rest. Where and what are the benefits for LTHs?

I bought in this morning too as XPP looks a quality company with a strong market position. SP reduction looks overdone. With results being announced later in Jan, SP should start to climb back. I agree with the comment about £20 SP possibly deterring PIs but going forward it should appeal to holders not traders.

For what reasons should the SP bounce quickly? Increase in TO is significant and the company is building material market share but EBITA is suffering. My former boss used to say TO is vanity and profit is sanity. Increasingly investors want to see a more substantial balance sheet. Potential new shareholders (as well as existing) may want to see a clearer path to returning to higher profit and be reassured there will not be any additional funding required. Otherwise there are other opportunities. I have only 2500 shares so won't be on the major list!

The unrestricted cash increased to $78m from $30m in H2 as costs for DSA were almost unchanged. It is necessary to finance capex but I was thinking of how to stabilise the volatile SP and reward holders. If RRE generates so much cash then using say 10% of the amount as a dividend should not compromise capex plans. A dividend policy should support a stable and rising SP. If the company is so undervalued there will hopefully be a means to show what it is really worth and make it more attractive. There are a lot of companies available to invest in and providing an income is what some PIs are looking for. I am invested in here and DGOC which has a clear and rewarding dividend policy.

With the significant cash generated why not spend £5m on a dividend for 2018? This would encourage IIs to come on board and also give a bonus to shareholders. Comparisons with DGOC might be made although on a different scale of production. DGOC has been quite stable in recent months. One factor that might put off PIs is the £6 odd SP when many PIs seem content with penny shares. This comment was made on XP Power where SP is over £20.

Vistaman- thank you for your comments which give a better understanding and may be a reason for the seemingly low SP bearing in mind anticipated production of 11,000 boepd. What is the likelihood of increase in RRE gas price being achieved? I will do more research but bought more @550p as I think this offers more upside in SP than PMO which I sold at a small profit.

RNS is great news and hopefully just a start! Where does it say pause is seven or so days?

RRE is a new holding for me based on what has been achieved this year and further developments anticipated. The SP is currently lower (as with all O&G) due to recent fall in oil price and now seems a good opportunity. Based on RNSs about half production will be gas and that might increase when Arran produces. My main question is the extent to which prices achieved on gas sales are as volatile as Brent oil or whether there is pricing stability on gas contracts. With gas demand being higher presumably in winter, will revenue be less impacted? I have the same question on other producers like DGOC which mainly produces gas.

The results announcement on 2.10.2018 provides a good summary of the position and achievements, including partnerships already in place. Announcements since show the material progress and the size of the latest partnership is very large in relation to the company and Mcap even if details of milestones and payments are not yet known.

After the fund raise in August I invested in 10k shares as a toe in the water. With the number of partnerships already in place and the recent ones with NEB and now LFC, the prospects look very promising. LFC looks a very big deal and although the size of NEB partnership is not disclosed the deal does say income could start in 2019. It now seems unlikely a further fund raise will be needed at least in the short term and when the income from LFC partnership starts (to be disclosed at some point) Avacta should be able to extend the development and commercialisation.

I will buy another tranche as the timescales do not look too drawn out.