Member Info for IBB_INVEST

I wouldn't rely too much into this. Shubham' portfolio has had some zeros with Razor Energy bankrupcy and several call options (e.g. Vermillion) expiring worthless. The portfolio has therefore shrunk increasing the weighting of surviving holdings such as i3 Energy.

I posted elsewhere that I got a response from IR and this was an entirely non-core asset sale with no revision to working interest average or marked drilling locations. Excellent stuff.

Agree 100% Tony. Win win deal.

I messaged IR about this deal and got the following response from management today (IR turn around has picked up recently):

Q1 - With this disposition, what are the acreage revisions for i3' Central Alberta, Clearwater, Wapiti and Simonette plays?

A1 - There are no acreage revisions for the Company’s working interest positions and no revisions for reserves. Royalty barrels are not included in reserves.

Q2 - Furthermore, does this disposition reduce the booked locations of 391 (254.4 net) across the Company's four core areas per the March 25th 2024 Reserves Report?

A2 - No there are no changes in booked locations at all, booked or not booked in the Company’s reserves.

I don’t think the buyer overpaid at all. I also don’t think the i3 sold it for dirt cheap either. I think it was just a deal that works for both sides. It’s royalty land, the net income could be $5M or even $10M in a few years in the buyers hands and if that is the case, they got it for very cheap. Time will tell how it works out for them. Still a good deal today for i3 for this non-core disposition as it allows them many option going forward.

A little nosey birdy found out that their new Canadian lender is National Bank. For those that don't know, National Bank are a leading Canadian business lender that publish great company analysis. i3 couldn't have gotten a better Canadian bank to partner with. They are integral to the Western Canadian oil industry. Great job management on this effort!

Good analysis Tony on the per barrel income and netback on their royalty barrels. What was very interesting to me during yesterday's Proactive interview was Majid talking about the potential future income from their Simonette Montney lands which they kept. There is huge interest in the Montney (its becoming known as a word class basin) and several 100% Montney producers working there now running rigs year round. Only a matter of time that i3' 35 Simonette royalty barrels are 350 boe/d or even 3500 boe/d. The Montney metrics are far better than Central Alberta however using $25 -20/boe that you calculated is a great baseline:

@ 350 boe/d = 127,750 boe / year x $30 = $3.8M USD

@ 3500 boe/d = 1,277,500 boe / year x $30 = $38.3M USD

Recall that the company believes that their Simonette could produce 30k+ boe/d if fully developed.

So potentially huge future income with little company drilling risk from their Simonette royalty still.

I still disagree with out on your view of the low Canadian coverage being the result of only 10% Canadian share ownership. Still my view that the 10% is the result of next to no Canadian institutional coverage and not the other way round. We shall agree to disagree on this one.

I also messaged IR showing them the extensive and impressive coverage by all of i3' peers and today got the finally response:

"I3 hired Canaccord Genuity as broker in Canada last year and the firm has published research on i3 Energy which is distributed to the institutional market in North America."

“Nothing really interesting in the report except they state drilling to be Oil Focused - really forrest ! But the interesting bit aquisitions may focus on Gas !”

Yes, no one should expect an oily acquisition with oil at $85. Won’t get bargains in the environment as everyone is making money.

Alberta AECO gas on the other hands is at cyclical lows of around $1 USD. US Permian gas is negative $4. That means these producers need to PAY someone to take the gas from them.

If the gas market in Canada further deteriorates this summer which is very likely could, there might be some very very cheap gas assets on the market or levered take-over targets for i3. Majid & Co will be like vultures I expect now that they have a fortress debt free balance sheet. Excellent position to be in for astute deal makers like i3 management.

Fantastic. Majid confirmed that these barrels NOT part of their companies reserves and therefore booked locations for drilling!

Their Simonette Montney is a game changing company defining asset. Everyone hear should check out i3’ grandfather, Crescent Point Energy who did a whole Investor Day on their Montney that offsets i3’ Simonette.

https://www.crescentpointenergy.com/invest/2024-investor-day

Wondering why management did not provide clarity on exactly what acreage was part of this disposition. According to the company's last report (2023 H1):

"Royalty Interest production averaged 386 boepd in H1, which was in line with the same period of 2022. The

Company remains focused on maximizing third-party activity on its extensive portfolio of 198,040 acres of royalty

interest lands. During the first half of 2023, third-party operators drilled and brought on production 3 wells within

the Company’s royalty interest properties."

Today's RNS indicates that 16,160 acres of Montney royalty land was kept which indicates that approx. 182K acres have been sold for the $35M. This could also be a great deal for the buyer depending on the quality of those lands.

i3' last investor slide deck is no longer on their website. Does anyone have any info how their Royalty Interest land was recorded within the total acreage? Was it part of the total that the company reported as total drilling acreage or kept separately? Another question for management would be whether this sale impacts the "total gross booked locations of 391 (254.4 net) across the Company's four core areas, for a total Company inventory (booked and unbooked) of greater than 950 gross (550 net) undeveloped locations." per the 2024 Reserve Report...

My previous message did not post correctly...

Wow, what a great deal. On the face, it looks fantastic. i3 itself was trading at less than $9K USD per barrel and they just sold 370 production for $64K USD per barrel. Wow. This management team does it again.

The devil will be in the detail howover. Royalty deals are about the LAND not the PRODUCTION so we really need to find out what and how much of their acreage is part of this deal. Does anyone know this detail? It looks like the Simonette was all or mostly excluded which confirms that this is THE core area for i3 which they will grow from reliable cashflows from their older Central Alberta assets. This is a copy of the new Crescent Point Energy business plan which is doing the same. Drilling banger wells and growing their Montney funded by the reliable cash flows of their older Saskatchewan assets. Coincidently, i3' Simonette is next to $CPG' Montney. Will i3 become a little brother of $CPG? Likely.

The clean balance sheet is a game changer. AECO is almost $1 and there are some 100% gas producers that have a lot of dent and no hedged and fully AECO exposed. There very likely will be very stressed gas assets coming to the market soon just like 2020 and Majid & co will be keeping an eye on these like vultures. They have done this before and will repeat it.

The nearly $20M CAD in debt principle and interest annual savings provides huge flexibility to drill oil wells this year. I would not be hoping for a dividend increase as with gas prices, they simply do not have the cash flow to increase the dividend. It would need to come out of the balance sheet (debt) and management wont repeat this mistake again. Expect management to be going on the offensive and drilling oil wells here.

Tony, any thought on what land was part of this sale?

Wow, what a great deal. On the face, it looks fantastic. i3 itself was trading at

Budget released. Confirmed no windfall taxes for O&G sector in Canada.

Thanks Tony. Ignore my previous question, I misread the results and thought that “no” won the vote hence my question on process to pay the dividend. Looks like it was a landslide loss for Canuck Da Divvy.

Just wondering if this has any affect with how they can pay the dividend? Any idea what plan B is?

100% they need to GGG. Majid and Co have proven so be very good managers, especially in operations and investment banking. They have navigated the company exceptionally well during very low commodity pricing and have proven to be shrewd businessmen when dealing with banks on debt negotiations and M&A. Now is the time to market the company via investment funds and get that Canadian and US ownership up there.

It is not up to generalist investors like me to convince management to do their job and market the company via investment bank and fund analyst coverage. As a CEO and President, they should know that this is an important part of their job. Below is i3' measly single Canadian analyst coverage for a 21,000 boe/d company:

Canaccord Genuity (though no longer listed on i3' website as analyst coverage?!)

A year ago when shareholders asked management why they have next to no Canadian coverage, they responded by saying that companies need to use the services of the banks to get coverage and i3 don't want to do that as its too expensive etc. though they are working on getting better coverage. IMO that was a bulls**t answer.

i3 Energy Comp Analyst Coverage below:

1) Crew Energy (30,200 boe/d)

https://crewenergy.com/investors/

ATB Capital Markets

BMO Capital Markets

Canaccord Genuity

Cormark Securities Inc.

Desjardins Capital

National Bank Financial

Peters & Co. Limited

Raymond James

RBC Capital Markets

Scotia Capital

Stifel FirstEnergy

TD Securities

Velocity Trade

2) Saturn Oil & Gas (26,890 boe/d)

https://saturnoil.com/investors/#analyst-coverage

Beacon Securities Limited, Canada

Canaccord Genuity Corp., Canada

Echelon Capital Markets, Canada

Eight Capital, Canada

Velocity Trade Capital, Canada

3) Pinecliff Energy (26,000 Boe/d)

https://www.pinecliffenergy.com/investor-relations#analyst

Cannacord Genuity

Desjardin Capital Markets

Haywood Securities Inc.

Paradigm Capital

Peters & Co.

Schacter Energy Research

Stifel FirstEnergy

4) Surge Energy (24,438 boe/d)

https://www.surgeenergy.ca/analyst-coverage/

Acumen Capital Partners

ATB Capital Markets

BMO Capital Markets

Canaccord Genuity

Cormark Securities

Eight Capital

National Bank Financial

Peters & Co.

Raymond James

Schachter Energy Research

Stifel FirstEnergy

Velocity Trade Capital

5) Cardinal Energy (22,500 boe/d)

https://cardinalenergy.ca/investors/analyst-coverage/

ATB Capital Markets

BMO

CIBC

Peters and Co.

Raymond James

RBC Capital Markets

Stifel FirstEnergy

6) Bonterra Energy (14,204 boe/d)

https://bonterraenergy.com/investors/

Acumen Capital

Stifel FirstEnergy

Haywood Securities

Paradigm Capital

Peters & Co

Raymond James

7) Journey Energy (12,400 boe/d)

Peters & Co. (https://vimeo.com/864017426/d8a3efff9e)

Several others

8) Yangarra (12,000 boe/d)

https://www.yangarra.ca/annual-reports/analyst-coverage/

Acumen Capital Finance Partners Limited

ATB Capital Markets

Canaccord Genuity

Cormark Securities Inc.

National Bank Financial

Paradigm Capital Inc.

Peters & Co

Raymond James Ltd.

9) InPlay Oil (9,500 boe/d)

https://www.inplayoil.com/investors/analyst-coverage

Acumen Capital Partners

ATB Capital Markets

Beacon Securities Limited

Canaccord Genuity

Schachter Energy Research Services

Noble Capital Markets, Inc.

Eight Capital

10) Gear Energy (6,000 boe/d)

Tony, you did not debunk anything. You pointed out that i3 has one third rate analyst covering it. Unlike it's peers, it has no major Canadian bank coverage and none of the leading Calgary based O&G investment banks. You do not have a leg to stand on in your weak argument that i3 has the same coverage of its peers. It simply does not!

" "UK investors have little knowledge of the Western Canadian oil basin" - This is a load of crap - an oil well is an oil well - there's nothing particularly special about a Canadan Oil Well . You may think you are smarter than the rest of the world - but you are not ! "

This is absolute rubbish Tony. A UK offshore well is NOT the same as a Central Alberta well. A US Permian well is NOT the same as a Central Alberta well. A NEBC Montney well is NOT the same as a Central Alberta well. An Alberta Montney well is NOT the same as a Central Alberta well. A Sask well is NOT the same as a Central Alberta well. A Fort McMurray oil sands well is NOT the same as a Central Alberta well. A Clearwater thermal heavy oil well is NOT the same as a Central Alberta well.

You are a terrible O&G investor is you think i3's Central Alberta oil wells are apples to apples to any of those listed above. They are not.

If an oil well is just an oil well. Why do certain asset's like Athabasca's production trade ($ per boe/d) trade as a huge premium to a conventional boe such as i3' or InPlay?

The average UK investor is NOT as familiar with the Western Canadian oil basin as Canadian investors. Delusional if you think they are. For a Canadian oil producer, i3 Energy's 10% Canadian investor base is simply pathetic and management should be ashamed of this, admit it and work to improve it. It is as simple as that. Indefensible.

"There is something wrong that Canadian's are only 10%." - I agree, put your hand in your pocket an buy more shares - simples !!

I own plenty of i3 Energy shares already. Canadian funds own ZERO shares due to managements substandard marketing of their company.