The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
2017 Results - A Solid set of figures after a restructuring “is Amazing”.... Overview and highlights PDF (link below) “Operationally busy across portfolio”.... RNS “We have a committed carried work programme of up to c.$240 million with our key partner INEOS” IMO great to have others paying for IGas exploration... http://www.igasplc.com/investors/presentations
Results - IGas showing a 15.5m Profit after Tax - RNS “IGas is now well set for the next period of its growth”
MM’s Short and playing games?? IMO have been trying to trigger stop losses.... Hasn’t worked this time. HL Bid more than the Ask for more than 40 mins, buy less than sell! Very, Very few shares for sale this side of 100p. Roll on Full Year Figures Wednesday :) DYOR
I look forward to the Full Year Results next Wednesday when the benefits of restructuring will IMO become apparent. I believe with less than 15% of shares in private investors hands the SP has the potential to rise very quickly. DYOR Stephen Bowler, Chief Executive 30/06/17 "We are well funded for the future and continue to be cashflow generative”
8 Working days till Final Results :)
Commons select committee - Planning guidance for fracking inquiry launched .... “The Committee will also consider whether applications for fracking should be determined by the national planning regime rather than at a local level” ... IMO NIMBY attitudes are denying UK of Energy Security. Testing at Ellesmere Port is of National Importance and planning therefore should be dealt with as National Infrastructure .... DYOR .... https://www.parliament.uk/business/committees/committees-a-z/commons-select/communities-and-local-government-committee/news-parliament-2017/fracking-inquiry-launch-17-19/
Reminders - IGas restructured at 90p(4.5p) and earlier this month given a target price of 200p .....DYOR.... IGAS Energy (IGAS) 2/2/2018 Canaccord Genuity (Joint broker) Reiterates Target GBX 200
IMO IGas SP oversold and on the turn. I suspect good profits to be announced 21st of March 2018
Video - In Ground end Q2 18 https://youtu.be/ZnTBS5AL3BY
Further acquisitions? - RNS 02/02/18 “we are generating free cash flow in our conventional business and continue to evaluate additional projects with attractive economics”
Patience is a Virtue - IMO SP oversold
IGas - Stability in a turbulent market - 70% of production already hedged for 2018. IMO lower than expected production costs coupled with hedging mean profits already locked in...... Ref RNS 02/02/18 ...... “December 2017 the average rate was c. 2,400 boepd (net). Operating costs for the year were c$28.5/boe” “600,000 barrels hedged for 2018”
Brent forecasted as averaging $70 in 2018 is the real SP driver for IGas. The daily delivery of over 2,400 Barrels equivalent from over 100 existing sites is what generates cash. IMO SP 150p+ when next earnings released and potential profits realised (regardless of planning approvals)
Reminder of positives - IGas interim Results 20th Sept 17 “c.2,500 boepd and operating costs of c.US$25/bbl in the medium term.” (My Calculations 2018 @$69 a barrel = 2500 x 365 x $44 = $40,150,000 gross) “Carried work programme of up to GBP183 million ($238 million at June 2017 exchange rates) as at 30 June 2017” (Great to have other people’s money paying for IGas drilling) “Net debt reduced from $122 (GBP100) million at 31 December 2016 to c.$9 (GBP7) million as at 30 June 2017”..... IMO - Increased Oil price, Low Debt and Shale gas prospects equal a very profitable future for Igas DYOR
Ellesmere Port extended well tests planning decision due soon. Committee meeting Thu 25 Jan 2018 see link below. The Conventional Oil Production from “more than 100 sites around the country”(IGas). IMO more than justifies current SP. If commercial amounts of Gas are eventually proved at one or more of the many potential IGas licences SP should take off. DYOR https://pa.cheshirewestandchester.gov.uk/online-applications/applicationDetails.do?activeTab=dates&keyVal=OTG0L0TE0I800 http://www.igas-engage.co.uk/our-work-in-ellesmere-port/ https://www.igasplc.com/media/38277/Interims-2017.
And a Prosperous New Year! - Brent up - SP on the move - a one Dollar rise of Brent could add $912,500 PA to Revenue (2500x365x$1) DYOR
Courtesy of Proactive Investors...... “If it was easy to plan, permit, drill and frack shale wells in the UK the group's valuation would be unrecognisable but currently the market gives very little credit to IGas and its shale business”........”IGas is one of very few investible plays in UK shale, and of those that are investible it is the most significant”............. Above was back in March, the industry is on the brink of proving up the Gas Resources. When this happens the realisation that shipping energy halfway round the world instead of using what’s under your feet will become obvious.
Fortunes of Cuadrilla and IGas are IMO linked - AJ Lucas (a significant owner of Cuadrilla) SP has risen over 70% since from the start of December, could there be some good drilling news imminent ? A viable resource? Expecting a knock on effect on IGas SP DYOR
shaleinUK Well said. IMO Government is distracted away from UK Energy Security and needs to do more to speed up exploration approvals. The Snail pace planning approvals and NIMBY practices of local authorities needs to be removed in the National interest. Buy the SP dip!
Superleggera - Kerogen heavily invested in AJL and IGas...... DYOR but I posted this back in July.... 29 Jul '17 Price: 67.63 ...... GoldMap 45 posts ....... True value of Igas ....... Some positive facts to balance the discussion..... 14 June 2017 IGas Annual General Meeting Trading Update Successful completion of balance sheet restructuring and fundraising in April 2017....... Experienced industry investor, Kerogen Capital, now a 28% shareholder following its $35 million equity investment..... Further $22 million raised in placing and open offer..... Net debt reduced from $122 million at 31 December 2016 to c.$8 million as at 31 May 2017...... Cash flow generative at current oil prices..... Shale appraisal and development plan covered by up to $230 million carried work programme..... IGas Financial Times July 3, 2017 Production costs have been cut “from the $40s per barrel to the $30s”..... IMO After the painful but necessary restructuring to adapt to a $50 dollar a barrel world. The $57m of New money, New Directors and New Chairman are positives going forward. Current Oil revenues will give the company working capital and interim profits allowing time for Gas reserves to be proved up. Also tucked away in the accounts is a useful "Ring fenced" corporation tax loss of £210m (31 December 2016) ...... N.B. Planning approvals have been obtained for two Gas prospects and drills should be turning later this year. DYOR