Member Info for jollygoodya

18k boep plus add ons from further drilling.
Imminent news on the following:
The rig has been moved to, and now spud, the second well in this Marten Hills Clearwater drilling programme at 02-12-075-26W4, with drilling expected to finish mid-July. Tie-in and equipping of the wells is expected to take five days following rig release, with production from both wells anticipated to commence in late July.

Harel, it gives us sufficient headroom to grow organically, in addition, BoD have said sharebuy backs will kick in at some point. I would like them to consolidate our acquistions before further acquisitions via cashflow, however they seem keen on aggressively approaching growth but on a low cost manner. Let's see what comes next. One thing's for sure, I3E will become a mid-tier producer (which I like) and not a small bit explorer with some production. If Serentiy FO proves tricky, we'll have some financial muscle to do something on our own terms..

Tony, hats off to you for that post and credit for overcoming your initial frustration on the deal and for taking a balance view on the merits of the outstanding deal and not getting bogged down on the mechanics of it.
Personally don't think we had much other choice:-
1/ To close the deal fast to prevent rivals and or meeting vendor deadlines.
2/ The reason the vendor was selling was that they were overleveraged.
3/ I'd rather take a hit now than fall into a trap as the vendor did (per 2) above and become distressed at some point.
3/ it's the cheapest and most cost effective way to execute the business plan and gear towards a mid-tier producer.
4/ It provides us with a highly scalable business with self sufficiency and the ability to control our Canadian assets in a most cost efficient manner and on our own terms.
5/ Capex will be reduced significantly
6/ Immediate cashflow - amazing!

There are many more merits. Absolutely superb deal

Lets cry about it forever. Peeps are crying over making less profit, when it would have been wiser to bank some. Am more concerned for those are actually down on their investment. Constant negativity is not going to change the ground reality but deter new investors maybe, what irony. I'm down and losing money, however I dont think I will lose money here. An not gonna whinge neither. Pi's never get a fair crack in aim. However this was brilliant deal and am happy to be invested. If you're making a profit and dont like what happened then sell up for petes sake and find a better investment case (which I think you'll be hard pressed to). Good night.

Exactly Bots, we have an astonishing opportunity to scale into what will be a mid cap producer at a small cap price. If one cant see and seize the opportunity that has presented itself, then one should stop investing and go visit casinos..all imo.

You nailed it there Tony. Reason primarybid was closed so fast was due to the II's biting I3E arm off and raising was closed super quick. If you read the 2 raising RNS', they effectively state this would happen, especially the primarybid one. One raise could not go on for longer than the other. Both closed simulataneosly. Those who missed out can buy open market. So what have you lost?

From WHI report courtesy of Tony:

We believe i3 Energy’s proven ability to raise funding sets it apart from the pack and makes i3 Energy a preferred counterparty for potential vendors. Although we believe the mantra “cash is king” remains true across the commodity cycle, it takes on a literal accuracy in a winner-takes-all context where the number of motivated sellers is grossly imbalanced relative to the limited number of funded acquirers.

Thats why I3E have managed to get this deal at such a good rate. Makes sense to grasp the opportunity.

Hasiba, yup it's tough atm. However, I dont believe you've lost £50k unless you crystallise it. The sp will correct it self but hey what do I know.. your money & call. So far amongst all the gripes, I've not read any other viable alternatives, other than broadbrush suggestions of raise debts etc. Timeline to raise and level of interest rates and repayments would reduce cashflow and impact divis too and could have had a negative impact too. I got the impression a fast deal was needed. As for Pi's not having equal opps, show me other companies who have not done the same not many..and inaddition you'll have evwn fewer companies who raised for this level of instant cashflow, production and reserves. It was not a raise for general working capital and overheads but to add value and for growth.Key metrics have improved dramatically.
If Pi's are annoyed about equality on deal, then you can still buy in open market at a decent entry point. I dont see the gripers doing that? Again sorry to see you're down, so am I and so are others. But I can see the huge uplift it will generate. Us all being done various amounts are relative to our investments/investment capability. If you are down £50k compared to before, others might be more or less down but that does not mean it hurts them any less. It is what is atm. The sp will rise imo. Just need to give it time.

Thanks Tony. Excellent indepth review by WHI. Surely people need to look at I3E as an investment with significant upside. Backs up our thinking on the deal on this BB.

Regardless of the symantics of how the raise was executed, the current sp is a great entry point. I always leave dry powder for such opportunities. This is fast growth company and the true value will unlock and filter to SP.
A good starting point for those looking for value and income. Start of a new chapter for I3E, you can either wait for the value to unclock or look for moonshots elsewhere. I3e will be in my long term p/f. At some point the share price will really move and sharebuy backs will happen imo.

Well spotted nomadic, I believe it's a great bit of business.
I run a couple of companies myself. I always look at doing what's best to grow the business or protect the business as the case maybe. As a shareholder of my company some of the deals are not great for me. However, I know I will reap the benefits as a shareholder later on as the measures taken come to fruition.
I see the I3E deal as a great bit of business going forward. What's brilliant about it is that it generates immediate cashflow and gives years of production ability via reserves. To boot 220 targets have already been identified to boost production and cashflow. Which all things being equal should lead to far higher cashflow and filter through to dividends.

Ex date 15th July. Delivered as set out..looking forward to the divis from hereon.

Separately presentation on website.
I would like to see a proactive interview please.

Hasib A/Hasiba,
It's not about sp crash atm but rather about the longerterm positioning of I3E and strengthening the value therein. There can be no doubt that this adds cashflow and longevity to production. From the way the deal was done, it appeara to have been time sensitive or to prevent a rival grabbing the assets in a location where I3E have a hold and hence provides synergies. The sp will correct itself as newsflow will be plentiful. The way this deal has been done will maximise cashflow retention and help maintain a decent dividend. As BoD have previously stated there will come a time when sharebuy backs will be more suited.
I3E is growing at pace. Cashflow generation and minimal debt servicing are essential for this growth. The strategy that BoD have stated is being fulfilled, just not in the way some have wanted. This will create immense value in due course. The BoD have played well thus far. The sp will be driven by newsinflow. The accreage adds scalability without the need for huge capital expenditure on infrastructure. AGAIN I REITERATE THIS IS TURNKEY BOLT ON. IMMEDIATE CASHFLOW TO THE TUNE OF $30M USD NET! OVER 12MTHS.
We need to stop crying about the sp atm. It will go up!

MissAnnGrey, a procative interview (in depth) would be very good to allay concerns of some of the PI's?

Tony, thats what it's about. Short term pain and a long term gain. Overall I think it's a very good deal albeit not favourable to us Pi's at this point. However with major catalysts coming. I'm expecting the sp to be higher. The immediate cashflow impact is massive. This is not a raise to explore and go boom or bust but a clever deal that will add a turnkey operation to I3E.

MissAnnaGrey

That's the best post I've read here today and it nails the situation as I understand it.
Cannot believe how a deal that sigbifcantly increases cashflow and boosts reserves by 150% is a bad one. The placing was done at a discount and detrimental to the sp in the short run, abd thats what made the bookbuild fast but it's transformational for I3E. Bang on, it strengthens our hand for negotiation purposes for Serenity. Yes sp has fallen to near placing price (nothing new there). The cashflow and production and preserving furture production and scalability that this deal gives, outweighs the negatives by far. I maintain its an excellent deal at a very cost effective price. Thank you for the post.

No dont agree Tony. 30% of a bigger fcf means higher distributable cash albeit divided with a bigger number of shares. So not as bad as a full 50% whack.

GGG, $30m net USD is bad for I3E? Straight up addition of cashflow is bad too? Infrastructure saving is bad too? Not having to service debt is bad too?

GGG, I agree with most of what you are saying. However, undeniably the deal is good for I3E and all stakeholders. Pain for us Pi's, yes. We are the bottom feeders in these markets. I think we'll all be better off. As far as divis are concerned, I refer to the fact that we will generate a whole lot more cashflow too. So 30% of a bigger cashflow means more distribution and yes it will get tapered off with the extra shares..

Agree Levs. Emotions are high at the moment. It is what it is. I don't for one second believe that II's have bought in for a short sharp profit. This is a longer term play and as such has always been. Time to switch off and let it play out :)

Levs, exact reason I dont buy via primarybid. Open market is the best way. Think the canadians will see this a very good deal and appealing price to load up.