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Another enigmatic RNS...

KK comments on his need to understand "the $9m CAPEX entries especially cars and other."
CC replied with "see Note 13"[Property, plant and equipment] with headline numbers and text from Note 21 [Provisions and contingencies].
The Property, plant and equipment Table shows the changes for 'Proved oil and gas assets', 'Motor Vehicles' and 'Other'. But as I could not see where the content mentioned in Note 21 appeared, I looked back to the H1 Report, expecting that the capitalised sum would be more evident. (It's always a tad disconcerting when the largest entry is in the column titled 'other')
However, there were NO Additions to the PP&E in the 1/2 year to June, which did not accord with the earlier narrative of $1.5m increase.

"Plant, property and equipment
The value of plant property and equipment increased to approximately $51.5 million (2020: $50.0 million)."

Closer examination shows that the increase was over the same period last year, not on the ongoing status at Jan 1st 2021 as inherited from the end of 2020, which was $52.8 million. Also, the 'Disposal' for Motor Vehicles of (14) does not carry over to the year end report at all: 'Unaudited' covers that then.

wrt the CHAIRMAN'S STATEMENT

"We are producing record amounts of oil and selling it at prices greater than at any time since we commenced production. Debt has been paid down or converted to equity and we expect to declare our first dividend later this year. "
Headline bullet point "Aggregate production for 2021 was 533,857 barrels (2020: 545,667) a decrease of approximately 2.2%"
20 Short-term borrowings
2020 $5.6 million
2021 $6.425 million (of which $6.2m was converted to equity in 2022)
Advances received (deferred revenue) increased to $3,925m from $2,986m.
This includes the "significant amount of prepayments from the oil traders in relation to
increasing production on the BNG oil field".
cf. the August 2021 update "We are now close to repaying all the historic local oil trader funding provided with respect for domestic sales. Once done we expect a greater share of our total production to be eligible for international rather than domestic sales." and
now "FINANCIAL REVIEW OF THE 12 MONTHS ENDED 31 DECEMBER 2021 (CONTINUED)
· The Group continues to forward sell its domestic production and receive advances from oil traders with $1.8m currently advanced and the continued availability of such arrangements is important to working capital."
"International vs Domestic sales
The proportion of oil sold on the international market in 2021 was similar to that in 2020 as the export status at South Yelemes was not received until late December 2021."
and in 2020
"the domestic price at which we are obliged to sell 40-45% of oil produced",
which is well down on the 25/75 split many thought.

Further clarity will be provided at the AGM, Rodney...

And the approval of the licence split and then EOG's 25% take-up is still awaited from NSTA (nee OGA)?

They gave us plenty of notification of the AGM, but has anyone seen the Resolutions yet that we will vote on? We know that it is academic with the CP, but surely there is a minimum period needed from the release of the AR to process those votes.
Is the website 'Error 504' for all or just me?

OT KK re crypto, did you see this one from yesterday afternoon? Keep up with the office youngsters!
https://investegate.co.uk/bybit/eqs/bybit-unveils-first-ever-bear-market-guide-for-traders/20220614134004EXFTY/

Was it only Wednesday when, amongst other things, I asked about the options?

The surprise, perhaps, is that they have taken up virtually all that have vested. Or rather the number of shares issued was minimised by the company providing cash to pay the tax due rather than selling sufficient shares to fund the tax due. So, of the 114,547,030 ordinary shares ("Option Shares") of the Company that were taken up, the Company has issued 66,305,381. Which means that @ 28p, 48,241,649 shares would have had to have been sold. This would seem to be a somewhat novel approach. Of course, with the current approval to purchase (buy back) shares this could be construed as simply a short circuiting expedient.
Given that the Bybrook placing of 60M only realised 27p when the SP was much higher, it is very unlikely that the market could have immediately absorbed the 48+M @ 28p, meaning that even more would have had to be sold at an even lower price to cover those taxes due, and only serving to exacerbate the current market malaise. Hope that not many of these new shares are cashed in and also that HMRC are approving of this inflated price exchange and the retention of more beneficial shares than would be the case in a free market encashment.

Having taken up all the options, we can now expect a new tranche to be awarded. As there is provision for up to 15% of the issued shares to be available as options, that would mean up to 155M could now be awarded. It is unlikely that they would all be awarded in one tranche, but given the history of awarding options with soft targets for the early vesting it will be interesting to see how quickly the next tranche is awarded and the early vesting terms...

The PoO and the cash flow will have exceeded all BoD expectations, (and most PIs!) generating huge income and potentially a cash pile.
In the bigger picture though, the question is can they spend that cash responsibly and successfully run a production company. Seems the jury is out at 27p ish.
The recent placing came from Bybrook's 294M. He had provided the earlier loan note funding which came with certain requirements, and subsequent amendments connected to the 5p fund raise for Gain, and more investment from Bybrook, leading to the completion of the fraternal opportunity that satisfied some of the requirements.

Why sell some now? His approval has to be gained, along with the NSTA (nee OGA) licence split and EOG acceptance.
Would that make him an insider wrt the planned drill?
How is the licence split affecting the current Dolphin contract?
What are the plans for Liberator West and Minos High?

Are there any other unknowns or impediments? Remember the BHGE block on dividend was never declared.

How long does it take to find a chairman? Linda has been Interim chair since September 2019, is she not worthy of appointing to the position?
Why has she, as 'the standout candidate', now become a new Non-exec at Hurricane?
Why are there still unclaimed 0.01p warrants?
Why have the BoD not taken up any of the 5p options (with the exception of Linda, who didn't have any @ 0.01p)?
How much longer is the ESG going to take? Due in Q1, then with Q1 update but still undergoing 'final review'.
Why is it so late, whose finger is not on the pulse? Or are they over optimistic with time lines as evidenced by the dividend process which was also months later than initially suggested?

Will there be some new info for EOG to share on the 16th, it's already 4 weeks since the signing?

Perhaps the new PRO-moter on Advfn can help shift the 60M...

KK it was my impression that it was a buy for an USA at £19.9k, it could even have been a B&ISA; as I understand not all brokers will perform back-to-back trades but wait until the cash is cleared. A fortuitous event as it happens. lol.
If only all posters were as upfront and honest with their trades...

wrt the 4 RNSs, OK two resulted from the second, but who expected the first amending the divi planning?
The plan had been to have two Resolutions to vote on at the Debt GM, but they didn't and then advised it would be with the AGM. Now it has its own earlier GM. At least that should enable an earlier payment, assuming its voted through - KO gets to vote this time I believe!
So if they can't organise a vote that has been on the table since early August, what chance do they have with the drill when 5h!t happens regularly?

As for the 'update', some see positives, some sold out.
Sure, there was some disappointing news, but hardly Black Swan events, any could have been predicted as risks, but unfortunate to hit the jackpot and for all to materialise.
But was it a sell or buying opportunty?
Yes, the realised price is now c. $35 lower. However, look back to July when they calculated the August RNS and POO was $70-75pb so they must have thought the business was ready for divis and able to sustain growth with CAPEX at that POO rather than at what we now have for Brent.
Or did they expect to have cash in from 142 though?
Or A8?
Or the Boat?
Or 3AB?
Interesting times continue, what will tomorrow bring the PI?

jimo
joe

How long now before the next RNS? Seems they didn't have one on ice!
EOG have set the ball rolling but there were a lot of conditional steps in the earlier FO announcement, as listed in G_G_G's recent post, and Tony is looking for an update on the status of the rig contract.
Cannot really see the Loan Note holders objecting, when Bybrook has just put c£1M into EOG, and imo the OGA licence split was also awaiting evidence of funding, because if you recall this from the H1 2021 Report (Sept 27th) "2. The farmout of its UK licences to conduct further appraisal drilling at Serenity and/or Liberator;", at the time they only had the one licence, so was the plural a slip of the brush or insight into the status of the way forward discussions with OGA and tacit approval of the split?
The real intrigue is with the rig contract, where Dolphin get up to 10% of the old licence. The terms were summarized in the ReAdmission document, as were the thoughts on the drilling campaign at Serenity. The EOG presentation suggests that has been tweaked. But what of the contract deal with the split licence and a single well?
The only clue is the EOG GM statement, "the Serenity acquisition is for a 25% stake in a discovered oil field, which is majority owned by i3 Energy and requires further appraisal to delineate the field and progress the Serenity field to the development phase. " suggesting that there is a third party involved.
iirc, the management plan was always to use another's cash to prove up, they have settled for almost 50/50, unless there is another deal waiting in the wings.
To run to the 82days of the rig contract, G_G_G's wished for wells in Lberator/Minos High would be needed on the other Licence. Perhaps they have another fo to announce, or do they fund it all?
The December RNS was carefully titled 2022 Canadian Capital Programme and Dividend Guidance, and did not mention NSea, but did say more could be spent.
We know that the prices used were very conservative and many here have been anticipating a special divi or a hike, but, of course, any spend now on the NS has to come from that same Canadian fcf.
That update is needed to remove the uncertainty hanging over future management actions.

jimo
joe

PS. Marten Hills update from our partner:
At Marten Hills, the planned four (2.0 net) well drilling program commenced in early February of which two (1.0 net) eight-leg multi-lateral wells
have been rig released. One (0.5 net) well has recently commenced sales production while the other is just beginning OBM recovery operations.
The remaining two (1.0 net) wells in the program are expected to be rig-released prior to the end of March or early April. New wells will continue
to be brought on in a step-wise fashion and operating conditions will be optimized through their early start-up production periods.
Drilling costs have escalated somewhat due to increased OBM costs which are directly related to the price of base oil.

KK
They must, surely, have some further success anticipated to plan to pay a divi, unless, of course, they just want to grab the excess cash the PoO is throwing off. The new licence should add some more cash unless those wells need a rework to produce again, before the re-drill horizontals. I never understood why production from those stopped while the application was in progress/deliberation, it did not apply to BNG.
We know about Carverspeak and his ability to convey a factual message about the state of the assets, but KO is the man with the plan: SS is working it. Remind me, why did they want Tim onboard?
Have you seen the ad for 3 red bus drivers yet?
Keep looking!

DaisyDo (and KK), your opinion is noted and a healthy dose of scepticism is justified on past performance but a dividend is the only way the CP and WCP can get any income from their long held positions, short of selling down their holdings. We do not have all of the info, despite the comprehensive company history detailed in the GM Circular. We do not know why Al Marris hold, or what conditions they may have laid down.
We do know that KS off-loaded some before transferring his holding, and the 4.2p Al Marri deal suggests he did not make anything on his investment. Previously, in KS's hands they were considered to be in the WCP, so the overall WCP holding is now much less, and the KO conversion does not restore it.
Do you think it is odd that the 'panel' wanted the waiver put to the independent shareholders to approve? What about his pay sacrifice award? Or the Boat? Or rigs? The panel simply said 'OK', carry on.

Re 'rattled' comment, in the 'No' case that would suggest that KO drops the share conversion and demands immediate cash repayment of the loan. With the motion as put, wouldn't the No vote have rejected the waiver to buy out the share holders that the panel had passed?[ie a takeover is required.] So, if KO doesn't want it all (or can't fund it with/without a WCP) he has to then backtrack to the status quo. (Where they have said no divi with an outstanding repayment-on-demand loan.) The Al Marri position is unexplained; the GM results show they withheld their votes.

If the eagerly anticipated update delivers on just some of the PI-hoped for results, then there will likely never be a more opportune time to go down the dividend route. It will be interesting to see what yield they propose and how the SP reacts to it and the drilling updates.

Much was made in the circular of the "Relationship Agreement"(which by itself may have prevented a KO takeover), with joining dates etc., and maintaining AIM-status, and yet the circular had this in bold:-
"In the event that the Waiver Resolution is approved at the General Meeting, neither the
Oraziman Family Concert Party, the Wider Concert Party nor any of their respective
connected persons or other persons acting in concert with it will be restricted from making
an offer for the Company"
The RA expires when KO has less than 20%.

Interesting times for the company...
and shareholders!

jimo
joe

From the Strategic, Financial, Operational Update RNS on 6 August 2021
"Dividends

It has been a long-held objective of the group to be a regular payer of dividends. Accordingly, at the General Meeting referred to above, shareholders will also be asked to approve a capital reduction required to allow the payment of dividends."
For whatever reason, it was not included in the Debt clearance GM.

The recent post GM Debt Conversion and Operational Updates RNS on 9th March Clive said
"With oil prices at record levels and increasing production volumes we look forward to a period of cash generation. ->Accordingly, we intend to put resolutions to the Annual General Meeting planned for June 2022, which if passed and if approved by the UK Court, would allow the commencement of dividends <- with an initial dividend expected to be declared in July 2022 and with the main dividend for the year expected to be declared in December 2022." {Emphasis added]

A capital reduction (for a plc) has to be approved by the court. Many companies opt for this route to get back to a positive balance sheet to enable dividend payment. It usually takes about two months, but then, Clive doesn't mention when PAYMENT is planned. and isn't it usual to announce the main dividend with the results for the year?

But, as LTH (and followers) know, this isn't any ordinary company, this is Caspian Sunrise.

The trades you refer to from yesterday are all double entered today: once as a deletion and once as a delayed trade.
Note the minus sign and then hover your cursor over the 'i' on the trades page on this site.
If you use Advfn, their data scraping programme does not read the minus sign...
HTH

Interesting that you post that Tony, as I looked at Ninepoint yesterday (because of the chart on twitter) and saw that Eric was their star performer at 31Jan over 1, 3 and 6 months and YTD, but not MTD where several others are ahead of him. Which is not the case here for i3e as your data shows rising very strongly this month.
https://www.ninepoint.com/prices-performance/?t=shortTermPerformance#shortTermPerformance

wrt your question, 16/20%, have you considered that they are both correct?
As a Finance man, it is probable that Graham used Bankers rounding and Majid looked to the plus side and quoted to just 1 significant figure. So, 16.5 can be both 16 or 20.

Maths affords a lot of opportunities...

Perhaps of more intrigue is why have the aggregate volumes for the previous quarters been modified so much? And with it, of course, the percentage of oil. ;-)

Tony summed it up - 'buy the rumour sell the news' certainly seems to be the case here.
OK, it's a reactionary day for stocks in general today with plenty presenting 'recovery' opportunities, but the early euphoria here has certainly eveporated this side of the pond: we await the Canadian response.
imo, the delay has been until they could show some positivity in the headline production, there is no other triggering event in the 'news'.
In the October update they said "production averaged approximately 18,960 boepd, for the seven-day period ending 16 October 2021".
Today, "production averaged approximately 19,055 boepd, for the seven-day period ending 12 February 2022", which is "With improved winter conditions and the positive impact of Q4's non-operated drilling"; Q4 averaged 18,229 boepd.
Allowing for low decline and the well closures and sells, it's not stunning, and they will need good results from the coming wells to hit their 20,000 by July.
But, perhaps more disappointing was the lack of any forward vision for the excess cash bering generated even with the dividend securing hedges.
Compare and contrast the PTAL RNS earlier this week. (Production, debt management, Market cap, divi and protection racket funding.) https://investegate.co.uk/petrotal-corp.--ptal-/rns/2022-capital-budget-of-us--120-million/202202220700093992C/

jimo
joe

So, after gifting all his shares to his kids, they elect to put them together into Akku Investments, and then we find out today that
"The underlying shareholdings are managed by Akku Investments, a Kazakh entity with Kuat Oraziman as the sole director and decision maker."
which would not only give him sole control of the O-family concert, but the majority holding in the wider concert also.

The CEO's plan is slowly coming together.

When will the salaries be restored??

And so the discussion continues....

However, none have looked at the other side of the coin to see what is in it for i3E.
The answer is, as Tony showed in his workings but missed in his conclusion:
The company gets to keep the cash for longer than it would under the two payment system, the corollary being that the investor loses out on a cash/time basis.
It is exacerbated by the 10 payments cf to 12 as Nov and Dec payments [20% cf. 16.67%] will be later arriving in the PI's hands than a single payment.

It does mean more work for the Nomad!
It does smooth the outgoings from i3E.
It will reduce peak demand from those re-investing divis and if the SP continues to appreciate as many expect, they will ultimately be more expensive to acquire at each 1/10 divi event [ie reduced yield]
It also means that a variable divi can be managed easier, which the investor can look forward to if only to restore the cash/time shortfall

But where is that update...and the opportunist trader's spike...or will it arrive on the 17th/18th?

In March you will get 1/10 of the 1.05p.
You will not get the full 1.05p until December.

However, as they will announce it monthly they retain the right to make it variable and could increase the monthly payments so that they deliver more cash to the Investor, as alluded to in the December RNS.

Intrigued that they have 2 RNSs re Divi and yet no production update.

G_G_G, last year they updated on 23 February, for the period November to January.
They said " The Company intends to provide regular quarterly updates starting with a summary of Q1 to be released in the second half of April 2021."
It arrived on the 5th May.

DYOC ;-)

PS Is the update not due in any event since Q4 and H2 share the same end date?
PPS Reporting would be H1 Interim & H2 Final, not quarterly as in Canada.

The interpretation of the RNS on here and Advfn is wide of the mark.

The Reason is given on the form: "An acquisition or disposal of financial instruments "
[2,175,000 increased to 9,875,000.]

They have not reduced their total Direct holding since the increase in their October declaration.
The percentage has reduced because Linda and another then took up some options thereby increasing the number of shares in issue.

They have shuffled the relative holdings of the three funds.

HTH

"They just need to get the bl@@dy thing sorted."
How long have PIs been saying that about Serenity?
.
If we knew why Tain was delayed it might help, especially if the fields are joined.
More so if RepsolSinopec and/or RockRose (aka Viaro Energy) are a partner, but then, why won't they show the money?
Do they want the info from the Serenity appraisal before committing to their FID for Tain, with Serenity a co-user of a "sufficiently green" FPSO, perhaps in a joint submission, in the successful drill case.
So is the shy partner a different company? Or are they just waiting until there is some clarification on getting a production approval from OGA (beyond the NS Transition Deal) and without incurring legal challenges, before moving to FID?

wrt the '6 months', that could be about right, if the shy partner can show the money by next month, or if the draft contract has an imminent time limit and A N Other has the ROFR. It may well be less as they have the Dolphin contract to expedite a rig, depending on their bookings, of course, and would then just have to get approvals through OGA..
The nomination of an Operator suggests there is some activity again (aka expense), iirc the NS team had been stood down/furloughed to minimise spend.

Maybe it's worth reviewing the previous comments from the BoD:
AR2020
In the UK, we will progress our appraisal and development plans at Serenity and Liberator as and when capital becomes available from potential partners.

and
H1 2021 Report (Sept 27th)
Terms have been agreed in principle with farm-in partners for the Serenity field appraisal drilling programme. We await confirmation of funding commitments from those potential farm-in partners before finalising and executing documentation.
And
The Company’s focus for the remainder of 2021 will be on 5 key areas:
1...
2 The farmout of its UK licences to conduct further appraisal drilling at Serenity and/or Liberator;
3..

and
https://www.energyvoice.com/oilandgas/north-sea/352366/i3-energy-serenity-appraisal/

So are we to expect two drilling campaigns or potentially an extended campaign, with any subsequent wells conditional on the first result?

Meanwhile, we do have those Canadian upates to look forward to.

somm, the unscheduled 3/4 days with no activity could have resulted in the well becoming blocked due to the extraordinary high temperatures and pressures and may need treatment with a special acid...