The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Interesting video (link below) from Cuadrilla suggesting a deeper layer of shale rock (up to 2km!) in UK verses USA. Advanced extraction methods developed over the last 10-20 Years using fewer Pads with multiple wells. N.B. This may or may not be applicable to IGas shale gas acreage so as always do your own research (and share!) http://www.mobile.twitter.com/CuadrillaUK/status/1014052152338153472/video/1
Brent near $78 .... My Rough Estimate of IGas Income - Average production of 2,323 B/D. Operating expenditure of $32.5 BOE. $78-$32.5 =$45.5 x2323 =105K B/D $38M PAGross .... IGas Market Cap £116M/$165M ..... (N.B. Hedged production IMO will average up gradually Plus Unconventional Gas acreage could be regarded as all profit with up to $240M Free Carry courtesy of JV partners) All above IMO & Basic figures, if you have better please share DYOR
INEOS Upstream Ltd Companies House 25/06/18 Strategic Report - “ The present focus is on two sites, both operated by our JV partner IGas” ..... “first well due to spud later in 2018” IMO A committed JV Partner and Brent above $76 suggests IGas SP has a long way to rise. DYOR
Very few PI’s left, lack of liquidity, 90% Closely Held Shares.... back on the rise IMO
IGas “The expectation of ongoing free operating cash flow provides us with a solid platform and financial flexibility to execute our growth plans” .... DYOR .... read full year results RNS 21st March 18
29 fields and over 100 producing sites IGas is Profitable on conventional Oil resources. Low debt and IMO guaranteed hedged income going into 2019. Significant shale carried work programme of up to $240m. Reminder of RNS 17/05/18 “Government will publish revised planning practice guidance on shale development in the summer alongside the launch of a consultation that will consider allowing exploration wells to be drilled under permitted development (i.e. without the requirement of a planning application)”
rizalino - thanks for your words of wisdom, I’ve topped up today at a big discount. Suggest you close your short and play somewhere else.
Very low liquidity - Bounced off the bottom IMO - Restructured last Year at 90p/4.5p (Pre) Brent was $50, now much higher and hedged production. Profitable on Conventional Oil production, Gas prospects are all icing on the cake
IGas restructured (Debt for Equity) last year @90p/4.5p(Pre) when Brent @$50 should be a steal at $80 Brent and 94p SP
Inverted Market several times today - IMO MM’s Short. Most of my buys still not showing. Been on the sidelines and watching since before Manipulative Beaufort exit. Let’s see AAU true worth without Beaufort hand-break on...... Reasons to invest - Ariana turning the corner, Excellent grades, 20,000oz plus PA, Bank loan being paid on schedule, *money in the Bank for drilling first seven holes to prove up Salinbas (IMO possible link to Hot Maden style deposit) and most important, low risk of further bucket shop dilution (*Paul-280i on LSE Re last nights meeting).... Result!
IMO MM games again out of the gate this morning they are short and trying to trigger stop losses yet again, opening price is a joke and we can see through it! Low liquidity with less than 15% PI’s an low volume allowing unrealistic drops, someone wants the rest of the shares cheap. IGas is able to function in Stealth mode as almost a private company, little of the upside is publicly known. Most PI’s holding steady. Will shares gap up? Or someone come clean and bid for the rest? Above is all in my opinion DYOR.... 4132 Shares traded, less than £4000 (78.80p-83.24p) and IGas value changes about £5m, Joke!
IGas primary product is Oil !.... Brent Broken through $75! ..... Each $1.18 = $1m additional revenue PA Pre Hedge (average production 850,000 Barrels PA). Market Cap = £95.6m ...... DYOR & Do the Math .....
IMO IGas still trading Half-price... IGas “Net assets were GBP181.6 million at 31 December 2017 (2016: GBP70.5 million) with the increase of GBP111.1 million arising primarily from the results of the capital restructuring and an income tax credit” “Borrowings decreased from GBP124.6 million to GBP21.2 million following the successful capital restructuring during the year” 2018 - IGas - “Site construction continues at both our sites in North Nottinghamshire, Springs Road and Tinker Lane. We are on track to spud the first well mid-2018”..... Part of Carried work programme of up to $240 funded mainly by INEOS
Ref. MarktheSpark “The guy who sold 250K shares at 3.25pm (assuming it was a sell) must be kicking himself”..... a further twist, a Buy of same amount of shares 277,390 after hours Tuesday. Mark, someone’s heard you and I think someone wasn’t authorised to sell “Whoops”, reversal of sale and possible £40,700 out of pocket. Pure speculation on my part on reasons but anything that potentially kicks conniving Shorter’s is fine by me. IMO Share has legs roll on 100p+ DYOR
Boom! Up we go
IGas has excellent prospects going forward, the conventional oil production will support the company while we wait for positive news from Shale Gas prospects. IGas after restructuring is now cash flow positive and has low debt. Accounts were solid and let down by one thing, the hedged production (I understand a de-risk requirement for bond holders). In 2016 when oil prices were going down hedge was $58 Barrel. In 2017 $51 (oil prices going up). Therefore prices being set at prior years expectations. We already know what the hedge is going forward and presumably the much improved profit to be announced this time next year. “Three way collar” hedge as I see it gives no gains above $75 but no losses below $ 47 Floor, average hedge going forward IMO $67 ?? not as good as $87 for 2015 but going in the right direction (above are rough figures if you have more accurate please share) DYOR (IGas RNS - 2018 three-way zero cost collars with an average floor price protection of $47/bbl and an average call spread of $60/bbl - $75/bbl)
IMO MM’s still Short and manipulating price, often to fill big orders cheaply after hours. 79p Paid today is the start of a move back up - winklebelly suggest you close your short ;)
Breaking now to the upside? Good luck all!
Direction is up but IMO MM’s Short and playing games again DYOR Bid/Ask