Member Info for nomadicinvestor

ECO and Gil continue to perform. I really love this ‘little’ company. My 10k buy back at 16p on IPO has done very well and another 10k top up back at 32 during the slight retrace a year ago has also done nicely. Should of bought some more but the sp has consistently risen so I’ve just gone along with it. When you hear Gil, he is so confident and I wouldn’t at all be surprised if Total have already indicated they will buy out ECOs share. I said at the time of their ‘cheap’ farm-in that would be the case. Get them in, use their expertise, find oil and not have huge drill costs due to reduced ownership. End game sell to Total at market value. Everyone is a winner. I don’t think Total will wait around, if oil is found they will want to have a large campaign next summer and will want control. Our 15% plus perhaps 20% from Tullow (they want to farm out to fund drilling).

REM (aka KDNC) has dumped another 1.5m shares. Not sure how anyone could invest in that company with the sole purpose of paying the directors lifestyle. Explains the drop back from 25ish.

3 months till spud. No time at all until ECO have a multi-million barrel resource logged. Can’t help but think that is then the time for Total to buy our share. They will still get it relitively cheap but we will still do well. Jethro Lobe is targeting 250m and let’s say the second target is also 250m barrels. That’s 75m net to ECO. At 8 dollars a barrel that’s £600m from drilled/ confirmed oil. Given the upside, Total could offer a billion and I think every party would be happy. Obviously as time passes the price would go up but no ECO holder would begrudge an earlyish sell for 625p. Either way I’ll be happy to hold until the end game, whenever that may be.

Yes. Basically with a ‘chance of success’ between 50 and 60%, the bank won’t loan the value of 100% of the drill. The junior loan therefore requires £10m in equity to be unlocked. This will almost certainly come through jv partner in my opinion - neither the board (who own 60% of the company) or the future jv partner will want i3e’s value diluted. Once we have the junior loan in place, we can drill these three wells and that in turn will unlock the senior debt facility currently being negotiated (around 100 million). This along with jv equity will fund next years drilling to first oil at 20k bopd. From there i3e are cash generative. In theory, i3e may never do a placing unless for acquisitions in a few years down the line.

In fairness the board have outlined their intention quite clearly in the company presentation. First step was always the junior loan facility. With junior loan documentation from mid to end of q1. They have done exactly that. Bid date being shifted a couple of weeks is no big deal.

Things moving forward and on target. Important to note the jv is to fund the 2020 drilling program, while this junior loan will fund the 2019. So still set to drill for 500m odd barrels in June.

Do you not have a wife or kids or football team or anything else better to do than create an account and post meaningless things on a forum? I don’t even know your reasoning, it’s not as if you would still have a short position at this price. Strange.

The thing that really excites me is that Tullow with a market cap of £3 billion, say their 60% will be 'transformational' for them. Our market cap is circa £100m - only 3% of Tullow's. Yet, with us owning 25% of what TLW does, on a gearing basis thats potentially 8x the impact. Given Guyana is basically 100% of our value now, yet it is only part of Tullows, you would be right to argue the gearing is even higher.

It is no wonder that Gil has came across stronger and more confident in every interview.

If they can finance this by giving away say 30% or something of the project then it will be a phenomenal turn around. Without doubt BCN would end the year as the highest share riser on LSE. Of course this is largely due to how terrible 2018 was. I am confident we will get a deal over the line and just hope it isn’t a catastrophic mix of huge dilution (shares) at 20p or whatever and a poor ‘cornerstone investor’ (just takes the cheap shares and doesn’t actually do anything). Ideally we will see a Hanwa type deal come in but with someone really willing to stump up the money. Asset level would be brilliant for us currently in. Not holding my breath but at 20p the risk/ reward is firmly on our side.

On 12th April 2018 (only 10 months ago) Peter Secker told proactive investors "by the end of 2019 we will have built the plant and we turn the button on to produce lithium carbonate in a1 2020". With an 18 month build time, something tells me we are very far behind.

As posted below .... "The Company seeks to complete the construction funding in H1 2019. To this end, Citi were appointed in November 2018 to lead the equity financing of the Sonora project alongside Canaccord." It’s quite clear it’s within H1, all be it that obviously includes Q1. It may happen in Q1, it may happen in Q2. We will know when we wake up one morning and there is a ‘Construction Funding for Sonora Completed’ RNS sitting in our mail. I’m just pretty sure the weather will be quite warm when that happens...

Hopefully we get near £1 before funding. That would really open up the books to circa £2/3 pre-drill, which is still only £125m odd valuation. Assuming any joint venture will rate us higher priced that than anyway.

Bottmzup - "The Company seeks to complete the construction funding in H1 2019. To this end, Citi were appointed in November 2018 to lead the equity financing of the Sonora project alongside Canaccord." Quote taken from Chairman's Statement. Q1 2019 (now until end of March) was always the target to complete financing, now it is H1 2019 (now until end of June). This is a delay. I don't usually mind delays but financing for Sonora was meant to be H1 2018! Then Q4 18 then Q1 19 now H1 19.... get the idea?

To be honest, at current prices this could end up being the best investment you could make. I'm almost positive this financing will be joint venture as equity will just not work. It could re-rate over night and I'm sticking with my investment but there is good reason to be frustrated with Peter Secker. If financing happens then the phrase we managed to 'trundle over the line' springs to mind.

It wasn't really a good rns though? It only told us what we already know, except funding is no longer imminent (by end of march) but potentially going on to end of june. In grand scheme of things it's not a huge deal but it is yet another delay. As mentioned, perhaps they are close to a deal and want to err on the side of caution, but can't see that happening.

Peter Secker has really blown this company up by not playing along with normal company management that is expected on the aim market. His whole ethos of little pr and let the asset speak for itself etc, well assets don't speak and that is why pr is so important. Not to mention the shambles of a funding attempt last year. When it wasn't going to plan I think they had to make a decision and just drop the placing price to get it over the line. Would of benefited us much more as we would be well into construction phase now.

I added a lot around the 21-22p level as if this ends up working out then I wanted to profit from the 'ride', but sadly it is looking grim at the moment.

Thanks also. This does come as good news as my post earlier indicated, I hoped the H1 19 was simply giving the board some breathing space, which seems to be the case. If they stated q1 and it didn't happen then theres a possiblity of the sp going down further. Worst thing on aim (or any market) is deadlines not being met.

Forgive me if it has been posted but does somebody have a link so I can listen to the presentation being spoken about?

Peter Secker should of said H1 2019 rather than second half of the year. Typical blunder by him as normal people don’t talk about financial years socommonly. This means there is a delay of up to three months as funding was meant to be in Q1.

Good update but nothing we didn’t know except funding to be completed in Q2 rather than Q1. As usual it’s pushed back. Hopefully they are just giving themselves some breathing space.

I think the most probable outcome will be Total buying out our share, probably by next summer. Then Tullow farming out a percent to Total who will become operators and maybe have 60-70%. Everyone would be happy with that. As for takeover price? In my opinion we are looking anywhere from 300 to 400p. Assuming large areas will still not be proved up (this is oil) and the relative early nature of Guyana. If we can hold on longer then who knows where we will end up but just can’t see it playing out that way.

It will be interesting to see the make up of the funding. Have a feeling we may be surprised. Mainly because I can see us bringing in a jv partner (as peter secker has alluded to). Getting that third party verification and expertise will really help credibility here which seems to be the main thing holding BCN back. Could end up bringing in more money than people think if we give away say 30%. Will also put a current market value on the project. Q1 doesn’t have that many weeks left and if funding is on track then we will hear soon. A meaningful update wouldn’t go amiss. As for valuation post funding, £1 must be a basement and I’d think circa £2 is likely. Seems high but BCN are seriously undervalued at the moment so scews the figures.