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100m - 200m tests per month.

1.2b - 2.4b per year.

50p profit per test = £600m - £1.2b per year

Drill a hole in the ground and come across some mud... tut tut... that’s 25% off your value

Is the idea that when this pipeline is complete Canadian oil prices may align more with WTI price?

Strategic rationale from March RNS gives a good overview:

“the WCSB provides a unique, time-limited opportunity to build a portfolio of production assets on superior metrics not achievable elsewhere. A short to medium term lack of infrastructure to transport Canadian oil and gas to international markets in combination with depressed gas prices in North America due to the growth in gas supply from shale gas drilling has led to many small and mid-cap oil and gas producers, particularly those with overleveraged balance sheets and heavily gas-weighted portfolios, to become financially distressed and to have limited access to the North American capital markets to fund maintenance opex or growth capex. Many of these companies contain excellent, long-life, low-decline production assets, with solid growth potential that may be acquirable at attractive metrics.

Though world oil markets are highly volatile at present, TEIC provides revenue from its long-life portfolio of assets which contain a number of low-cost production enhancement opportunities with the potential to add several hundred bopd in the near term or at such time as commodity prices strengthen.”

Yes, each oil producing country has their own oil market economics so, for sure, will be more complex picture than just oil price drop.

“The current pricing environment remains challenging as take-away capacity on both the oil and natural gas have hit significant bottlenecks creating unprecedented wide product differentials putting pressure on revenues and operating margins.”

Low oil price alongside Inadequate infrastructure and rise in US shale were a ****tail of headwinds for Canadian oil companies.

I3e mgmt have cited all of this as reasons why they feel they have a “time limited” window to pick up cheap assets from distressed sellers before conditions begin to become more favourable.

Let’s hope they are right and can find the right investors to back their strategy.

Go back a few years and Toscana production was nearer 3,000 Boepd.

Looks like they started shutting up production after 2016 oil price crash and have continued to do so up to today.

Post acq. strategy would appear to be to get those production numbers back up again which increases the potential here, as discussed by I3e mgmt:

“Toscana's portfolio contains a number of low-cost opportunities to enhance production from existing producing fields”

That’s either a very lazy journalist regurgitating months old news or an encouraging sign of progress.

Before March Dolphin agreement was announced via rns there were a couple of similar articles discussing the possibility of a Dolphin farming in with I3e in exchange for costs mind.

Any idea how much costs would be to start production at wn? Can’t imagine costs would be that high being onshore & close to infrastructure but they must vary greatly depending on scale of production.

I have a feeling that s&s wish to see wn through to production themselves rather than sell. They are young and ambitious.

Buybacks from post acquisition cash flows, as mgmt stated was the intention in their last interview, rather than from current cash resources - which would, I agree be a stupid thought!

Just sent my message for the AGM which is whether mgmt are still planning on conducting share buybacks post acquisition and if so when they expect these to start.

Last Proactive interview they stated intention to do so.

Consider the situation the other way round. If I3e share holders were offered 1.5p in Toscana shares but the I3e sp was 6p then I think most would surely sell at 6p rather than hang around for the hope of something better.

Which is what I suspect a lot of Toscana shareholders have done over the past few months. Question remains as to who has been buying at the current prices.

Certainly odd as to why the Toscana sp has held up so well since deal was announced three months ago. No one would buy those shares unless they were connected with mgmt on either side surely? Guaranteed 75% loss given the known facts..

If You were a Toscana shareholder then why keep your shares at this price?

I don’t believe lots are holding shares just to spite mgmt - people’s motivation when investing is financial.

Share prices always align when there is an all share takeover so it is odd why that Toscana and I3e’s sp are so far apart.

Effectively, Toscana shareholders are holding for a guaranteed 75% loss by holding on to their shares and if I3e re-list at 6p. Why not sell and then buy 4 x quantity of I3e shares in a few months.

Who’s buying Toscana shares for a 75% loss? I3e will be prohibited from buying Toscana shares!

They must be expecting a higher I3e sp or a better offer from I3e. No chance of a rival approach as I3e have the debt.

Oil man Jim preys on private investors in order to elicit some subscriptions to his blog.

Bit of common sense asks why peddle yourself for a few Bob

On I3e his record has been terrible. Almost perfectly calling it a buy at the top and a sell at the bottom

' The Company is in discussions with its investors and brokers and is seeking funding for the consideration of the Proposed Acquisition and general corporate purposes.'

Sounds like they will raise the c£50m - can’t see that being done at current sp as whoever takes the placing shares will end with 90% ownership?

Warrants being set to zero has a baring on the placing price too.

I.e. the higher the placing price the greater the value of the free warrants.

If placing is done at 3p then warrants are worth £1.2m and post placing fully diluted mcap is about £55m (assuming a raise of £50m)

If placing is done at 30p then post raise fully diluted mcap Is about £105m but warrants are worth £12m.

All depends on what mcap they will be able to successfully refloat the company at with Toscana, new acquisition, Serenity & Liberator as a portfolio. This then depends on progress at Serenerator etc etc.

I think there is a lot of positive to be taken from that news this morning.

Manufacturing capacity being warmed up and ready to roll

Missed this at the bottom of yesterday’s rns re. $60m acquisition,

“The Company is in discussions with its investors and brokers and is seeking funding for the consideration of the Proposed Acquisition and general corporate purposes.”

“At the conclusion of the Arrangement Agreement, i3 intends that its enlarged share capital will be listed on the TSX.” Paragraph ends