The over supply and fall of close to 20m bbopd in demand twisted the prices of oil, brent from SA is being sold for less then 16$, the russian ural oil being sold for less then 13$ etc. Ggg is right about the break even of wti, once the market will stabilize a 25$ wti price will break even.
If it is the nature of the deal there are three game changers here: 1. They have a platform. 2. One well produces 200 bbopd and cost 1m$, So with 20m$ senior debt they can produce another 4000bbopd. 3. They "baught" a 25m$ tax asset
We also "own" the debt, i dont understand how they are planning to pay back all those debts when they dont have money to pay their own debt or to fund the summer campaign. They must be sure the amount of cash from the serenity f/o will be more then the drilling costs but the risk is on our expence.. We will see in the coming months if they deliver or its the lib flop all over again.
Just released q4 2019 and years end report on their website: TOSCANA ENERGY ENTERS INTO AN OPTION AGREEMENT WITH i3 ENERGY PLC, AND ANNOUNCES THE ASSIGNMENT OF ITS SENIOR BANK DEBT AND SUBORDINATED NOTE AND THE RELEASE OF ITS FOURTH QUARTER AND YEAR END 2019 RESULTSMarch 30, 2020Toscana Energy Announces 2019 ReservesMarch 13, 2020Toscana Energy Initiates Formal Strategic Alternatives ProcessJanuary 8, 2020
Dont know when i Will be able to read it, stuck in my house with two babies and not a minute to breath. BUT, very important to understand if the senior loan is yet to be used or if the money is still it toscanas hands or the worst case scenario, we are being lied to saying they made a deal of paying 0.7$ a barrel when while paying 7$ a barrel. If anyone has more time to go over the numbers and share with us that would be great.
GGG, You wrote: I agree with some other posters this deal on its own isn't anything to get excited about, but it does have a number of strengths, namely: access to debt facility / funds And: additional leverage in f/o negotiations. Can you please explain what leverage it provides in your view and what do you mean by access to debt facility. My understanding is that i3e is buying a debt of around 32mc$ that has already been spent to add to its existing debt.
Because of some ignorant posters who dont understand what thet read and when some idiot thinks its deramping and wants to be the hero that saves the day creating a herd response, i will post again the "deramping" post so that maby in the second round their slow brain might get it..
Not realy a reason for big buys, big debt to serve for a mini small cap like i3e and a small scale production of 1k bbopd. The break even is amazing as its an onshore field and oil is in c. 500m depth. The rational of the deal as i see it is the potential expenditure as the field has a potential of 100m recoverables and with higher oil price in a year might create significant value. The key of making this deal a good deal is investing and ramping the bbopd and that requires money. If i3e sees itself as a company that can provide the means to expend the production rate, it must be sure they are gonna make a great deal in serenity, else its a joke on our expence.
So barny, your assumption is wrong, not only i didnt sell out, im by far the biggest pi in this company. You and your toyboy are so ignorant you dont understand whats ramping and deramping! I wrote the break even is amazing and that there is a 100m recoverables potential, lets say it as it is, you both dont understand what it means and probably didnt read the update fully. So this has a potential to create a lot of value (as i wrote as well) if you can fund it!!! And in that regard i3e is dependant on a good deal in serenity, so i wrote that in my opinion they would go for this deal only if they were to know they gonna make a good farm out deal. In any case im in for serenity.