The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
'The data you are quoting I assume is from the AIF - thats only available through SEDAR correct ?'
As I stated, it is all from the AIF: no need for you to assume!
And the AIF, although required by Canada and released through SEDAR, is on the i3E website.
Try https://wp-i3energy-2021.s3.eu-west-2.amazonaws.com/media/2024/05/i3Energy_AIF.pdf if you can't get through SEDAR.
@Tony re headcount on Advfn:
Although the ESG was released in 2024, the period covered is 2022. There is text 'Unless otherwise stated, this report presents data and information from the year 2022.'
(Wonder when we get the 2023 issue! Seems most of the info was in the 2023AR.)
However, "As at December 31, 2023, i3 Energy’s UK operations had one full-time employee, three part-time employees and two consultants/contract operators, all located in the UK offices."[cf. 4 UK employees (4 FT / 0 PT), 2 UK contractors]
and 49 Canadian employees (49 FT / 0 PT), 75 Canadian contractors has become 53 full-time employees, one part-time employee and 73 consultants/contract operators.
All from the AIF: worth a read imo...
HTH
Final attempt
IBB_INVEST, the Hangingstone land was part of the Toscana assets, a minor asset less than 5% of the NPV, and was a 26% share of a large licensed area operated by Canadian Natural Resources producing gas.
HTH
Bluemango, thought you had got to 4,976,923 yesterday ;-)
There is, of course, an art to this.
Q? Why would you agree to take shares at a premium to the prevailing price to settle a debt.
Why should you have to if the company cannot pay cash?
Q? Who would be owed exactly £145,500?
Why GBP, why not oil dollars or local tenge?
Q? Why did the price rise so quickly after the deal?
Have we miscalculated?
Or, perhaps they were the buyer of 500k on the 24th? A buy that started the climb??
There are some on here that play the crowd: these guys are experts.
The volume may well still be churning through to reach sticky hands.
jimo
[4,476,923 x 0.0325 = £145,499.9975]
Spike 12:32
"Serenity is worthless as it stands."
Except in the eyes of the BOD and the accounts:
"For its UK assets, management has considered the results of the 31 December 2022 impairment test which used a discounted cash flow model of a one well development of the Serenity field and has concluded that there were no developments in 2023 which would change the conclusions reached at the time, and therefore that no indicators of impairment were present. A one well development may be dependent on access to infrastructure at neighbouring fields which may not become available to the Group, and therefore the commercial development of Serenity is not certain."
Further to Tony's AECO post@ 9:22
https://oilprice.com/Latest-Energy-News/World-News/Texas-Natural-Gas-Prices-Are-Negative-As-Drillers-Chase-Oil-Sales.html
CC think you are starting to confuse yourself or have I missed an RNS?
"I'd figured Kuat had handsomnly repaid himself for the cheap boat price by ripping $60m out for block 8, another unproven field with an expired licence and no firm production figures."
Hasn't Production stopped pending licence?
And the $60M is payable at $5/barrel produced, like a royalty. So nothing yet. That's 12million barrels, if...
I agree with the $5M CTS/CASP/Bank merry-go-round.
They also say the opportunistic nephew now works for Casp. He needs uncle's help clearly as he is a just a tad behind his cousin with his CASP holding. Or perhaps he is a new front for KO, who no longer owns any Casp shares, and appently just works there as the CEO.
"It's only a 25sqm block", I know that's a typo: it's not big enough for that camel!
Soon be back to the March 2022 conversion price. Is AO taking a salary yet, or still racking it up as the loan??
Re: Smarty @22:30
Yet another RNS that raises more questions with the information it provides!
The Takeover Panel "has reviewed the composition of these concert parties and agreed that there is now only a single concert party", suggesting that dialogue was had with revised information that led to a new conclusion at a time preceding this RNS.
The family concert party is now increased by one following the transfer of Daulet Beisenov from the Wider party to the family due to being a former business partner, but the others were not apparently.
Aidana is still in the family party but otherwise totally disenfrachised; no longer holding any interest in the Company.
The "Akku Investments" investment advisory company, (registered in Almaty, Kazakhstan that manages the Oraziman Family Concert Party's shareholding in Caspian Sunrise, which is owned equally by Aibek Oraziman and Aidana
Urazimanova with Kuat Oraziman as the sole director) appears to have joined the fabled Norwegian Blue parrot. It still appears in the CASP holdings table as a footnote but not connected. It is unclear whether AO, a NED, is in charge of his massive holding or not.
Being connected, AO didn't join CC and Shin to share their fair value thoughts.
But if you like Corporate Governance read the website, CC chairs 2 with AO, and AO chairs 1 with CC.
Principle 5 still embraces Edmund.
YCNMIU
wrt the deal, it's yet another bit being plugged in from the nephew, (is he the brother-in-law's son?). He was at 3AB, CE & Block8. Now he is employed by CASP.
So he stands to share handsomely in any cashing out of CASP for his WS input.
But will a sale happen?
Now that the Wider party is dissolved and the family cannot vote on the waiver, there could be a rejection, which may then prompt a TO...
jimo
joe
Yesterday there was a good exchange of views. Perhaps the most profound comment though was Tony's 'Peer translates to “of equal standing” – BOEPD is misleading as you can see that Oil weighted stocks have significantly higher revenues than their Gas weighted counter parts.'
But it is more than that and is where the comparisons cited fail as i3E has no peer. I do not know of another London listed O&G stock with NS acreage and Canadian production with a secondary listing on TSX. Period.
All the Canadian generated income has to first fund London and the NS team and Licences, before considering what to do with the 'FCF'.
However, it is important to remember that the Canadian venture was only undertaken to meet the obligations of the revised loan note terms, and that the fund raise that came with it had a Dividend Policy: 'to begin paying a dividend of between 20 per cent. and 30 per cent. of free cash flow annually, progressively increasing this to 40 per cent. asi3's Canadian business expand'. That Loan note provider is still the largest stockholder and will clearly be afforded the same access to the BOD that Eric enjoys with the BODs of companies with his much smaller percentage holdings to express his preferential views and which may or may not be aligned with PIs.
With the NS still in abeyance, the progress on the Canadian assets was not only derailed by the Trafigura amortising loan and covenants (in conjunction with realised lower commodity prices) but also resulted in a halving of dividend.
Now, free from those shackles with the RBL, the long awaited 2024 Capex plan can be delivered. But there will still be some wondering why an appropriate plan could not be announced last year and updated as things changed. Q1 was put on ice.
Apparently C$232,649M were to be spent this year according to the 2022 Reserves Report...but just C$36,630M according to the 2023 Reserves Report. DYOC.
jimo
joe
We know that the capital programme has been deferred to 'mid-April' but what of the YE Results?
Is anybody expecting them to be released today to satisfy the Canadian regulation deadline: 90days from YE but extended to 2 April due to the long Easter weekend?
Busy 4 days ahead...
11 March:
The Circular will be available on the Company's website at https://i3.energy on the
anticipated date of posting, 25 March 2024,
&
26 February 2024:
As we enter 2024 with continued weakness in commodity price forecasts, in particular for North American gas, our business strategy remains flexible between high rate of return organic drilling and inorganic growth opportunities. The Company is progressing several initiatives which will be incorporated into an optimised 2024
drilling and capital programme, and we look forward to updating the market on this during the course of March."
Year-End 2023 Reserves Update
i3's year-end 2023 independent reserves evaluation is in progress and the Company expects to release its final numbers in late March, prior to the dissemination of its 2023 year-end financial statements.
Year-End 2023 and 2024 Quarterly Financial Reporting
As the Company's Canadian shareholding has now increased beyond 10%, i3 is no longer a designated foreign issuer and therefore is no longer eligible for TSX continuous disclosure exemptions previously granted through National Instrument 71-102. As such, the Company will commence issuing TSX required quarterly financial reports for Q1 2024, including a Management Discussion and Analysis (MD&A). Additionally, an Annual Information Form (AIF) will be included as part of the Company's 2023 year-end financial statements which will be issued by 31 March 2024.
The Art of Accounting.
Similar to the art of photography: now you see it, now you don't.
aiui, the accounting rules now adopted have created an embarrasment of riches in the wrong place in the accounts.
This can be resolved by issuing new bonus shares in the company [notionally doubling], creating an (almost equal) rise in share premium account that the courts can then agree to cancel and we are back at square one. What's not to like??
The accounts for 2023 have therefore been completed and the Asset value recorded will have come from the reserves statement, all subject to final audit and board meeting approval before being made public. (2 of the 3 in the last RNS)
Previously, the Shareholder agreement to capital reduction (with near identical justification) was tagged into the AGM. This time it's stand alone.
Or is it? And what is the 'urgency'?
What about the third item?
Looks like a busy end to the month, let's hope for clean announcements and that they do not need to re-issue.
jimo
joe
Contd.
Some i3E "small print":-
18 Risk management contracts
The Group enters risk management contracts to hedge a portion of the Group’s exposure to fluctuations in prevailing commodity prices for oil, gas, and natural gas liquids. The Group’s physical commodity contracts represent physical delivery sales contracts in the ordinary course of business and are therefore not recorded at fair value in the consolidated financial statements. The Group’s financial risk management contracts have not been designated as hedging instruments in a hedge relationship under IFRS 9 and are carried at fair value through profit and loss. The financial risk management contracts are classified as Level 2 in the fair value hierarchy as defined by IFRS 13 ‘Fair value measurements’ (note 22).
Net operating income (NOI)
Net operating income is defined as gross profit before depreciation and depletion, gains or losses on risk management contracts, and other operating income, which equals revenue from the sale of oil and gas and processing income, less production costs. Management believes that net operating income is a useful supplementary measure as it provides investors with information on operating margins before non-cash depreciation and depletion charges and gains or losses on risk management contracts.
Free cash flow (FCF)
FCF is defined as cash from / (used in) operating activities less cash capital expenditures on PP&E and E&E.
Management believes that FCF provides useful information to management and investors about the Group’s ability to pay dividends.
HTH
As all the crude oil now has to be sold to Trafigura, a condition attached to the amortising loan they provided, will these hedges (and collars not disussed below!) all have to be with Trafigura, a multinational commodity trading company?
This year, the loan repayments are c. 30M C$ -> c. 22.5US$, so if they have protected approximately USD $41 million of 2024 NOI, the loan repayments are covered.
The volume and time horizon, however, are unprecedented at i3E. Is this strategy the work of Jason Dranchuk or might one suspect some Trafigura obligation?
The magnitude of the hedging cannot be known until there is some annual guidance.
Tony took the latest quarter production figures in his calculations, which is not unreasonable; trouble is afaik they will not drill in the winter access only area this year, have not announced that they will drill at all in Q1, and they have a 17% decline rate. Two Q4 drills were successful and will add to the production figures, as will the suspended 2023 well which is now delivering oil for trucking, whilst the winter roads exist, but we do not have information on the duration of the reductions attributed to "conservative capital management during the period of softening gas prices".
If they are to continue their Y-O-Y production growth, expect it to be bought.
And with this level of hedging, PIs will need to contain their excitement at upward moving commodity prices as the bottom line will be less affected.
jimo
joe
Nomad, if you look at the LSExchange reported trades, you will see that high opening prices are a standard feature with a SINT trader regularly waiting on the bell with his penny buys which naturally are at the top of the price range. Frequently it's followed buy a small sell, at the bottom of the spread. Todays 3 trades were all timed to the same second...
Earlier this week was probably also slightly distorted also by the small DRIP buys going through at a time of their choice, not yours.
And it takes an 'A'trade to move the reported price here.