Member Info for nomadicinvestor

8.5p sounds reasonable. That's roughly £65m mcap for a 10k bopd production with big tax offsets. The potential here with M&A strategy will also be appealing. I3 energy do seem to be able to pull off good deals. The slide that showed Canadian transactions over 2019 averaged 6 times the price i3e paid per barrel is a good indicator what they will be worth with a minor recovery.

I bought all my shares around the IPO time (av 24p) so while I was once in large profits, my average is not too bad having topped up whenever it dipped to 5p and below at the start of the year. Now subscribing to new shares my average will be 8-10p. Sure there's a decent profit in here still.

Serenity is now a bonus in my opinion. I did not realise that Gain's 9k bopd operate on a $9.4 cost. Given it's all weather wells, that is a lot of cash each year from the start. Talking of initial dividends of 20-30% of profits, that is a big payback to shareholders. The metrics here are really good given we are purchasing at such cheap prices, we're going to be primed for recovery investors. Feeling quite confident now. All be it we are never going to see previous highs, I do think we will see 20,30p within a couple years based on Canada alone. Serenity could speed this up.

I said to myself I wouldn't participate in placings but have subscribed to increase my holding by around 70%. It is a new venture, current shareholders have not done well but these guys know how to do deals. The Canadian basin looks a lot less risky (no drilling of high points) and I'm sure they have a strategy. Even selling part of the non money generating asset makes total sense to bring the cost down, especially given where the market is.

80% dilution and not for the whole cake, bit dissapointed. People buying in at 5p will do well, others might make some money back over the next year or so. The money generated in first few quarters will determine SP, if i3e do become cash generative then that's the key. Serenity is now the bonus, it seems like there's no priced in value for Serenity.

cn100 - thanks for posting, it's quite nice to see a modest (realistic) forecast on these forums. No wild fag packet. Certaintly would be happy with re-list at 25p and then hopefully grow from there. I would hope a $34m netback would put us into the 150 - 250m mcap.

In fairness to the board they have always got the financing and usually on good terms. They have found this new deal and there's a plan in place. I think the original IPO was just too ambitious, it led to the company being pushed to hit high points to unlock funding for massive production. If they started off a bit simpler (aiming for 5k rather than 10-20k bopd) didn't need to hit structural highs to register x amount of reserves, then we would be in a totally different position.

Roger65 - I'm assuming your relatively new to BCN (by that I mean within the last 12 months). There was a long time BCN was my stable share, everything going well but the inevitable delays kept the share price within a range. It traded between about 75 and 90p for years and years (except minor spikes to 70 and 100). We really got done over by NextView Capital cancelling their 90m funding. Remember that funding was at 94p - the market price at the time. If it had gone ahead, along with the Hanwa and Oman Wealth Fund, then we would be in construction now and at a much higher share price.

Secker get's a lot of stick and I do think he deserves it, he fails to meet every single deadline over a five year period. Actually the only time things seemed to move quickly was with David Lenigas pushing it (but we all know how that turned out - a dummy deal with Teslea that would of killed us by selling for well below market rate and burdening us with insurmountable debt levels). NextView single handedly burst the BCN bubble and then Morgan Stanley's wildly innaccurate report to suggest electric cars/ mass storage was a thing of the future, not present, put the final nail in the financing coffin. Share price collapsed, lithium no longer riding high and funding became difficult. Ganfeng was the correct way to go. Giving away a large chunk, not going to get anywhere like the short term gains we could have, but hopefully longer term it will create a bigger asset.

We will always have an end game here - to sell Sonora in the billions. So even if current investors are diluted to 20-25%, there is huge scope for big profit in 2 - 3 years.

Totally agree with fairdealer20 - we have Toscanna by the proverbials and they have no option but to vote yes. Well, they can vote no and ensure they get zero percent of their money back. The company spent too much on assets that weren't developed efficicently, resulting in a high debt burden and ultimately having no access to further finance. It's a common story in oil and gas. We are in the position to bail them out, take the assets and develop them without the high initial buy in burden. All our money (apart from the small initial outlay) will be towards development.

The new 10k bopd deal that I3e have just announced totally changes the transaction. i3e were valued at 6p prior to that announcement, who knows what i3e will come back at should that progress. Clearly value is seen on the Toscanna end and they are only getting 4% worth of it.

All very interesting and encouraging. A commitment to have 5k boepd by April 2021. New asset has production of 10k boepd. Sounds like this may be the first of several. Should this all go through i3e will be a much bigger company and be much further down the development route. Effectively a good sized producer.

Key thing for current shareholders is the value point of the dilution to fund this. Hopefully with the board as large shareholders it won’t be too dilutive. There is a chance the dilution levels make it impossible for us to ever reach the kind of value we saw a year ago (100p equivalent). Though most here I’m sure would be happy with much less.

As I say, can’t comment until all the details are issued but looks very encouraging.

Should be an interesting week here in any case. Hopefully we send the documents over to be signed - don’t really see why we would leave it until the very last day. No rumours of farm out being completed so doubt that’s holding anything up. Is the Dolphin contract not conditional on arranging finance by end of June also?

News either side of the Atlantic will see a rally here.

34p would be rejected. Ganfeng don't want to take over, it suits them to have BCN operating Sonora.

Toscanna had a fairly long farm-out type process and failed to find a buyer. Market conditions changed and i3e jumped in. Ultimately though, we are paying 3.5m for 28m debt - with that debt, the asset is not viable. They have to sell and while some Toscanna forum goers may say they are voting no, I think most of their serious investors will vote with the board. There's no conflict of interest, the deal is approved via fair play procedure and given a 'fair value' rating.

I think with oil price showing signs of recovery, this looks to be a really good addition. The mapped out organic growth will help to stablise and push the mcap with a constant stream of news.

The REM deal was a dogs dinner and complete joke. I believe the price per tonne was under 4,500 dollars - not too much above the cost price. Well under long term contract prices of roughly 10-11k tonne.

Given the current pandemic, I’d be surprised if the note holders were not willing to extend the deadline by a modest amount (couple months). Can’t see the benefit to anyone if they do not agree to this?

I wonder why the 30th March Canadian acquisition RNS has disappeared from LSE? Couldn’t find it and thought was going mad, had to check the real LSE.

Exactly. If oil can get back over 30, Canadian asset sells for around 6 discount and costs are 21 dollars. Would give a million dollar profit annually and an extra 350k for each dollar oil rises. With a mcap around £7m that underpins the company. Serenity is still where the substantial gains. Prove up the oil and we will be sitting on £100m mcap+ based on reserves (14 times current sp and that’s not pie in the sky, was there a year or two ago).

20% spread on LSE is massive. Hoping to get some positive news. Can’t see any until over the worst of Covid (first wave) and everyone gets back to work.

No idea why anyone would pay for this site, it's down all the time and often has wrong trades and prices.

The key positive with ECO (which I don't think is that understood outwith people already invested) is our cash balance. ECO do not need funding, that is a massive asset going forward and a massive reduction in risk. Especially in the current climate. I admit 2020 is now about oil recovery and hopefully just general market improvement here. Next year can be quite exciting with a couple drills at least into creteacous.

So we bought Liberator on the lowest day for oil a couple of years ago, have we done the same with Toscana?

Oil at $24 made the asset look break even at best, two days later at $34 we are looking at a solid cash generating project. I really think the market has hammered I3E for the liberator failure. Liberator is simply not the asset originally thought of, but the board still did well to secure it and get the financing. Liberator also has logged reserves that more than underpin our mcap. The board always find the money and never at huge discount to market price, unlike lots of AIM oilers. Serenity is a massive success so far and I totally get the Canada asset and direction. As a whole I trust this board, one mistake (poor model interpretation of Liberator East) isn't enough to tell me i3e is a bad company.