Member Info for Drjimjones

My research report is now on the KE Report website. www.kereport.com/2021/03/11/doc-jones-research-report-on-i3-energy/

https://ceo.ca/@Drjimjones/10-bagger-in-oil-youve-never-heard-of-i3-energy

Https://ceo.ca/@Drjimjones/10-bagger-in-oil-youve-never-heard-of-i3-energy

Go to ceo Ca find find my profile under community click it’s under my articles ... this site is silly and won’t allow links. https://ceo.ca/@Drjimjones/10-bagger-in-oil-youve-never-heard-of-i3-energy

My group and I now own 3% of the company FYI

https://ceo.ca/@Drjimjones/10-bagger-in-oil-youve-never-heard-of-i3-energy

Enjoy
Doc

between, twitter where my due diligence post have now a combined 12k hits, then add in ceo.ca, then add in the Ke Report. It adds up, I est 20000. Plus my report is now circulating in Australia and German investor boards. Slow burn but as more and more figure out for themselves what the data shows, it's a no brainer.

part 2:

I’m a scientist, I change when the data/information changes.. no emotion about it, I retest the thesis then I buy more, scale-out, or hold for more data.

I don’t work for anyone or get paid for the research I do. I give my research away for free to help educate the next generation about the wealth creation this sector can provide.

I don’t proof-read enough but this isn’t a grammar/spelling contest, the prize, the gold, is in what story the numbers tell.

Must-read books:

Robert Stevens
Mineral Exploration and Mining Essentials

John Ridley
Ore Deposit Geology
Illustrated Edition

Metals And Energy Finance: Application Of Quantitative Finance Techniques To The Evaluation Of Minerals, Coal And Petroleum Projects (Second Edition)

John Downes
Dictionary of Finance and Investment Terms
Published by Barrons

“The stock market is a device for transferring money from the impatient to the patient.” - Warren Buffett

NOTE: I DONT GET PAID FOR MY RESEARCH BY ANYONE.

I’m a PRIVATE INVESTOR, enjoying early retirement after a long, successful, and fulfilling career as an investment professional with a focus on the resource sector (including oil and gas). I employ common sense, Fundamental, bottom-up analysis that incorporates but not limited to: currency exchange rates, cost of labor, raw materials cost, geology, Metallurgy, cost of capital, infrastructure, macro influencing factors, capital discipline by management, etc.

Twitter: drjimjonesceo

http://www.kereport.com/2021/02/23/doc-jones-shares-his-due-diligence-process-for-resource-companies/

http://www.kereport.com/2021/03/10/doc-jones-explorers-vs-majors-wheres-the-best-value-and-what-could-still-get-hit/

Research, research, research. I run a highly concentrated and focused portfolio.

If you want to invest along side me, do your own due diligence, it’s your money, your responsibility, buy and sell for your own reasons not mine. It’s your money.

The best investment you can make is in your own education.

I am driven by the hunt for value and truth. This is my passion in life. I’m a big research nerd. Always double-check and only trust the numbers that you have vetted.

Commit to memory: “all ozs in the ground are NOT created equal” understanding this basic principle will increase your wealth and your ability to sleep at night...

Best,

Doc Jones

(FYI my middle name is Jim, so spare me the Koolaid jokes.)

anyway you can thanks the +20000 investors globally who have read my report published 48 hours ago.

It's what happens when globally in real time, investors wake-up. They could close shop, sell off all the assets and give each share 3x min of the value today. Read the energy report by the US Govt. demand exceeding 101 million Barrels Per Day in 2022 GDP healthy. GDP is direct correlated to energy consumption and population growth that means currently fossil fuels. NG above 3$ usd so we will get over $4 in Canada, currently $2.60. Cashflow in 2022 for ITE i3 will growth exponentially just form prices, then add in production gains. etc etc. Energy is the only sector not in a bubble

Data trumps all. I can't post links here go to ceo dot ca and you'll see I posted the latest report from eia dot gov. Here's some of the important bits: "If you are in oil it's good to read this every month....historically they always low ball prices fyi Keypoint: Demand exceends 101 million barrels a day in 2022, Ng up 50% in 2022, healthy GDP = energy consumption "EIA estimates that the world consumed 95.9 million b/d of petroleum and liquid fuels in February, which is down 1.6 million b/d from February 2020. If confirmed by final consumption data, the 1.6 million b/d decline would represent the smallest year-over-year decline since the COVID-19 outbreak began affecting oil consumption in January 2020. EIA forecasts that global consumption of petroleum and liquid fuels will average 97.5 million b/d for all of 2021, which is up by 5.3 million b/d from 2020. EIA forecasts that consumption will increase by another 3.8 million b/d in 2022 to average 101.3 million b/d." "IA expects that Henry Hub spot prices will average $3.14/MMBtu in 2021, which is up from the 2020 average of $2.03/MMBtu" "U.S. gross domestic product (GDP) declined by 3.5% in 2020 from 2019 levels. This STEO assumes U.S. GDP will grow by 5.5% in 2021 and by 4.2% in 2022, compared with an assumption of 3.8% in 2021 and 4.2% in 2022"

dividend news is 2-3 weeks away, worth waiting for right,

My pleasure: Key things to watch to model cashflow

It's worth saying this. I think what many failed to realize in the Uk is that ITE isn't just an exploration company anymore but a production/ developer with a North Sea exploration arm, the bulk of the company is production. They are producing 10000/BOE/d at a blended realized price of $35-40 USD = Rev for 2021 $172 Million, very different evaluation models, price/FCF price/dividend yield price/PDP price/NPV-10 on P1-2. Cashflow means dividends, maybe buybacks and no more dilution that explorers in all resource areas are known for.

Things to watch to model cashflow:

1) Price of Edmonton Sweet Oil (priced wit - Edmonton Sweet differential currently about $2, meaning they get $63USD for each barrel) They bulk of their current oil production is this

2) Price of WCS oil (heavy oil. priced wti - WCS differential, currently $12 ) = $53 USD

3) exchange rate of Can $=USD. What's great is their fixed cost mostly are paid in cheaper $can and they sell in USD

4) Price of Alberta Natural Gas, C5, NG Liquids

5) With now over 80 Million BOE in reserves, watch for whatever remains of their old debt to be refinanced with a first lien credit facility at half the interest rate, their Net debt is about 20 million Can$ I think.

Pace of Clearwater development. 400% Irr's, at current price amazing

So it's not a high risk exploration co now, it's a low risk producer with a multi decade investor of drilling locations and the upside of discovery in the North Sea, gravy. It's. manufacturers process now. Drill, Complete, flow, tie-in, repeat... use goggle to find the current differentially. Best Doc

Bed time. Almost 4am. Do your research, double check mine or anyone else’s data. The formulas are easy to find. Sedar in Canada, etc etc the resources used are in the report. Take your time it won’t be 5x over night. Know what it is before you buy. Best Doc Jones

To qualify further fcf of 50-60 million, dividend policy is to pay out 20-30% fcf = using low end of 50 million fcf = 10-12 million in dividend or 1.4-1.7 cent Canadian a share. At current price that’s 8-9.5% dividend yield current oil/gas JR on tsx pay an average of 1-2%. I3 will be very attractive for income investors and could compress price to average yield so that’s 4x uplift, its even better in uk because i3 shares are trading at 16.5 Canadian (forex exchange) vs tsx price on 18 cents ... that’s the arbitrage gap that will likely close in 1-3 trading sessions.

I don’t know where the share will trade tomorrow but I do know that if oil price remain above 50$ usd for WTI i3 will reprice over the next year to an industry peer multiple which =approx 5x from the current price. You have 2 things working for you currently 1) no one in North America has ever heard of them it’s a new listing done quietly in Nov and being new many will wait until April to see the q1 filing, there first as a public company ... kind of silly because all the data is there on sedar (Canadian securities regulatory website) plus they already put out guidance based on feb stripe pricing currently prices are 22-25% higher meaning noi (net operating income) for 2021 is likely 70/80 million fcf 50-60 million, industry multiple in Canada is 6-10 x fcf = 3-5x uplift in share price 2) some are waiting for the dividend again silly it’ll come especially considering the maintenance cap is so low as well as net debt after capital raise and they have owned assets since nov1 (5 months of cashflow when they report there first q ever as a tsx big board listed company. ..... plus they is the upside of expansion of production compounding fcf over time.

You guys are lucky you can still buy at a discount while LSE is still the home market, that’ll change pretty quick, because the principal assets are in Canada and the tax listing pretty much ensures going forward (meaning very soon) tsx will be the price setter and volume driver. Then also the otc (us) listing will kick in making North America dominate exchange for shares. Good luck. I would suggest before anyone buys or sell read the report on ceo.Ca it’s under my profile. The data is the data. All info from public legal filings and resources.

I appreciate whoever posted my research here. I will be speaking with the company next week and I’ll update you all as well as ceo.Ca. Regardless of some of your feeling about the mixed offshore drilling program you have to look at the data. The assets in Canada are tier 1 bought for pennies on the dollar, which have since reprices giving the company a tangible net asset value that exceeds 5x the current market cap. just the dividend alone makes this an amazing buy. The Clearwater acreage alone based on recent sales would fetch 70-80 million Canadian due to its tier proximity an recoverable oil of 169-200 million barrels of oil prices off of western Canadian select. Currently $53 usd and the irrs are above 400%. If your cost is considerably higher I suggest averaging down. Soon it won’t be on sale. If you have any questions about my due diligence report you know where to find me. It’s 3:09am here so you may have to wait for answers though. Best doc https://ceo.ca/@Drjimjones/10-bagger-in-oil-youve-never-heard-of-i3-energy