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Tony, Your friend only knew to look for the response to the Ms Lucas question because you shared your original research uncovering the question(s) that Ms Lucas had posed, on this BB. Thanks for that: not sure it was acknowledged over there. ;-)
However, wrt i3E and their Licence, it seems you have misunderstood the UK Licensing Regime. It is explained within their Re-Admission Document, and the 2020AR provides details of the P2358 Licence moving to the second term. (The P1987 Licence was relinquished.)
This is a UK Seaward Production Licence.
But before any production, the company will need sufficient appraisal wells to determine economic viability and each stage is only permitted when specific conditions have been met.
Perhaps it is explained with the analogy of the driving licence. You get one, but have to conform to further government regulations to use it, with tests for you and the vehicle and conforming to all pervading restrictions to keep it.
HTH
joe
G_G_G they were still working on the plan for the rest of this year in the H1 webcast...
Tony, Both Shell and BP are at a different point in their life cycle to that of i3E. Both have spare cash and have been offloading assets, i3E is seeking to acquire further assets. No comparison and BH it is not! HTH
Cenovos were able to offload non-core assets that they acquired indirectly from ConocoPhillips to i3E as part of their necessary debt reduction programme, aka 'the asset disposition process'.
i3E have doubled their production and see the consolidation of assets can provide cost saving opportunities. The fact that they were 'undercapitalized' is seen to have 'significant upside potential'. Alternatively, you may read that as 'recently unloved and neglected, ripe for modifications needed to bring it up to date': aka immediate use for excess cash flow.
That cash flow will also be needed to keep the manageable level of debt low in the quest for further acquisitions: a 'multitude' were under consideration in the H1 webcast.
Leaving little opportunity for buy backs.
jimo
joe
If the company is now prepared to take on debt for expansion purposes, it does not need a higher SP, so there is nothing gained spending capital on buy backs: it is only impatient stock holders that want to see instant gain.
It is worth looking at the requirements for the early vesting of the (soft) options to understand what their focus is, major Canadian A&D will not occur using others money until they start a farmout process.
Is the NS farmout not on the same free carry principle?
jimo
joe
Tony asks:
“Do you know whether it was ever approved for example was the initial Environmental Impact Assessment initially approved and now rejected pending additional information to address ESG concerns.”
In a word, no.
However, Shell would not operate in a vacuum, and OGA expect regular updates, so two-way dialogue is to be expected and the application would not just drop on the OGA doormat even if the unexpected response did drop on Shell's.
Perhaps it is explained by the ESG goalposts moving and becoming closer together.
Don't know if you have reviewed these:
https://www.ogauthority.co.uk/news-publications/publications/2021/stewardship-expectation-11-net-zero/
https://www.gov.uk/government/publications/north-sea-transition-deal
A Methane Action Plan is identified in the latter.(COP 26 achieved a methane pledge.)
And, then this one, suggesting in might not be just those 'in the application phase' as you put it.
https://www.spglobal.com/platts/en/market-insights/latest-news/oil/102821-interview-all-undeveloped-nsea-projects-should-face-environmental-review-scottish-minister
wrt Ms Lucas and her little list, the answer is usually along the lines 'I refer the Honourable Lady to my previous answer'.
But it is interesting to note that her list far exceeds the number of approvals granted over recent years, viz
https://www.ogauthority.co.uk/media/7796/full-list-of-offshore-field-consents-oct-21.xlsx
joe
Tony, if you follow this link you will see how Shell [nee BG] got on with their Jackdaw gas application:
https://www.gov.uk/government/publications/jackdaw-field-development#history
Anyone wondering if this may yet go lower, now that the dividend re-investment demand has passed and G_G_G has had his 'last two top-ups', although that still leaves him short of his declared +4.75m goal...
Perhaps the cupidity of certain holders, both here and over there, is the reason for continuing the positive posting to inspire others and thereby stop the slide.
wrt the farm-out in the NS, the lawyers were on it last December and the terms are now done, [see H1 Report], evidence of the cash is awaited before drilling applications etc are made. There probably is a longstop date pencilled in, which is why they suggested possibly going it alone in the recent interview.
But are they really thinking that the likes of Viaro or Sinopec might renege on their dues for the drilling?
Or are they looking at a smaller player, a much smaller player - like a new start-up, that is still seeking funding.
aiui, there is a new company that is behind schedule with its initial farm-in to a producer, which would then have provided security for the funds needed for this appraisal drilling programme and has long harboured an interest in this licence. UOG had planned to exit the NS, but have not had the best fortune with their divestment to date.
If the issue is with a mid-sized company, not being able to go to FID and release internal funding for this appraisal, is it because they cannot see how the end game would play out in the current environment with OGA/OPRED not sanctioning recent field development submissions? The original plan was, aiui, to use BleoHolm, but it has only a relatively short life and is not powered by green electricity...
Gotta hope that i3E have a production plan in the event of the anticipated appraisal success, should it be sanctioned, of course. Meanwhile i3E NS is a financial drain on Canadian fcf.
jimo
joe
Are you now anticipating more like this one?
https://www.bursamalaysia.com/market_information/announcements/company_announcement/announcement_details?ann_id=3198149
Anyone wanting the history only has to click the Director Deals button above.
or this link to avoid scrolling ;-)
https://www.lse.co.uk/DirectorsDeals.asp?shareprice=I3E&share=I3-Energy
and you will see the research from The Abbot (aka jadam aka ronbruce) is lacking in accuracy . The irony. :-))
Tony must have had a reason to copy it over, it pre-dated my missive below by some 20mins so was not done to rebut that.
Do we need to get Longwait (from JOG) on the case....
Yesterday Majid said they were still looking at acquisitions perhaps we will get a new Punch and Judy show, rather than the ongoing repeats with minor script changes. jimo, :-) naturally!
fwiw, we need to look at the whole picture and not just the Cenovus raise.
i3E had some Loan Notes and a bad drill. These notes were renegotiated and (keeping it brief) the terms were satisfied by the Toscana deal and then the Gain deal, which lead to the first raise Documentation and the associated new Admission Document detailing the terms.
Of note, were
(1) the Dividend commitment in the Investment Proposition,
(2) the Loan Note "amendments include the requirement that the currently outstanding i3 management options will be cancelled and replacement options will be issued to i3 staff and directors which replicate the terms of the adjusted Loan Note warrants (the "New Options") in relation to the exercise price , to seek alignment between the Noteholders and management." and
(3) the award of 75M options, 45.2M to the board, also at 5p with soft targets.
The second 'requirement' is unlikely to have been required by the Note holders and is most probably a quid pro quo, which together with the third identifies the self-serving attitude espoused by the BOD.
wrt the Loan Note holders, they had saved the company, held it at their mercy in event of default, and would now be able to dictate future financing options to their own best interests, remembering a bit of quid pro quo.
Therefore the arguments presented by the BOD in the H1 video were probably specious, being justified by labouring the points and, and and, and and. None of them were blockers, but needed earlier planning and activity to be able to draw on when needed, but hey, the equity option was already in their back pocket and would enable more soft options by dint of the increased total.
The main LN holder appears not to have sold any shares: check the maths out. Doesn't mean he has not traded, but his Warrant conversion neatly outed a reduced holding RNS from Premier Miton when the Total was raised.
The LN holder is getting pik-interest on much safer Loan Notes and dividend on his 5p shares as well as capital appreciation. Hardly surprising that he wanted more at pre-Doc-ramp price along with other II besties and the offer closed so quickly..
We have seen the second tranche of 5p shares to the BoD, just 74.2M to come, then the 11p ones...
Better hope they continue to buy these and not take the JOG route revealed on Monday.
How will the next acquisition be funded? What level of 'simple' debt could they fund the interest on with their assets all needing investment. Yes, Majid has proposed using others cash by farming out, but do they want in on his terms?
Time will tell.
jimo
joe
Agree re Moxon.
However, many employees did get cash from the company for the sale of the options as stated. [240,000 options and 19,074 shares.]
Your long post of last night suggested someone took c 3%, 500,000 is only just over 1.5%, but it disappeared along with Longwait's entertaining posts when the broom came out overnight.
https://themarketherald.ca/i3-energy-plc-tsxite-provides-q3-updates-2021-10-26/
Direct link to i3E clip.
Hope you're more moved than Caroline and that it's not a foretaste of the ProActive...
Two trades with identical price and volume could be account transfers, for example tax planning spouse to spouse, a bequest or similar. So new owners but neither bought nor sold...just a broker's fee. jimo.
Tony, You could well be right. However, it is starting to get very interesting now for long term business decisions in many sectors.
Tomorrow we have this:
https://www.shetnews.co.uk/2021/09/14/parliament-vote-on-future-oil-and-gas-projects-as-scottish-tories-show-support-for-cambo/
and this is from the ClientEarth mentioned:
https://www.clientearth.org/latest/press-office/press/banks-support-of-cambo-oil-field-operators-is-hypocrisy-clientearth-lawyers/
If it's ok to continue the off topic because of the long weekend, this chap, Alexander Stahel
preferred PTAL over HUR since waayy back!
There is a recent tweet (26th August) and a couple of retweets (26th& 25th) here:
https://twitter.com/BurggrabenH
The chart does not include ITE [i3E].
Tony, perhaps you may have misread my post.
The hot off the press data was for exiting July.
My comment was that the production for Q2 was now re-stated at a lower amount using a different metric.
Why bother stating something in an RNS if it has no meaning?
The July 2nd RNS stated:
"Production in the second quarter averaged 9,142 boepd, which included the impact of routine facility maintenance on third-party facilities. Production since the start-up of the Noel well on June 17 has averaged 9,353 boepd."
With Noel previously RNSed at 650boepd, the maths supports Magid's comment '... Q2 have consistently been above 9,000 boepd'. This is the volume needed at the end of July to satisfy the early vesting of some of the options.
This week the Operational and Financial Update states "an average over the final week of July of 10,031 boepd " and Magid commenting ".. resulting in the Company exiting July with a weekly average field estimate of greater than 10,000 boepd." Vesting box ticked.
However, it also states that "Q2 2021 average production of 8,905 boepd based on net field sales estimates .."
I note the use of 'estimates' (and by Magid) but is the message that they are not selling all that they produce and therefore Q2 revenues will be less than some are expecting?
Perhaps you noticed that the displayed price and the graphs here (and on Advfn) only take into account the AT trades and not the O-trades and the bid/offer spread , until the UT. And the AT trades were finished after 10 minutes of selling down today, so it sat at 10.40 for the rest of the day.
This, of course, is only possible since of the unannounced change from SETSqx to SETS trading service.
imo this RNS provides the clearest information they have yet issued.
I believe it was suggested on here that they should include the number of options issued.
This RNS provides the missing info from the previous one: the actual split of the director awards.
However, I note that Ron has apparently borrowed JA's RTG!
Not only are they not stretch targets, 1/3 was already satisfied before the RNS was written! And in three years they all vest, by doing SFA.
Moreover, iirc, the early vesting requirements of the 0.01p have been satisfied ahead of the 31st October 2021 maturity date and when this deal closes, they will have satisfied the 5p options for the Canadians, JIT for the divi, if they were so minded.
Of course, had they taken on debt to fund this deal, their largesse would have been limited for this tranche of options.
But fear not, when they take up some it will free the way for further tranches... without having to wait for the next placing deal: which of course they may need to advance this current set of options.
jimo
joe
Tony / Tom
Majid was specific with his 'pleased' list.
Perhaps more telling was his “Operations were performed very efficiently, and the experience will assist greatly in the programming of the second phase of drilling on this acreage. “ suggesting that something was not quite right and changes would be made for the second phase. But that is to be expected – aka 'learning on the job'.
Disappointing was that oil is 3 to 4 weeks away and that the promised July 'production' actually meant recovered drilling fluids. We await the '150bopd'.
And at Wapiti, "Operations are planned to conclude in early Q3 2021"....think they are using their ''Maiden Dividend calendar'?
ho-hum.