Member Info for nomadicinvestor

I understand a simonette well costs around $12m and will come online at 750-1000bopd? This sale allows for two of them. Can replace the lost production and then some!

Excited for the 2024 programme.

Selling oil at 7x cash flow is extremely good - shows the underlying value in the rest of the folio. Also large hint that 2024 will focus on Simonette oil.

I'm starting to think the low valuation is primarily the oil to gas ratio. Hopefully this is rectified in the 2024 capex programme. We'll probably look back in a year or two and think i3e came out of the gas slump not too badly. It's been a dire environment.

Lots of information given in the interview.

Big picture i3e capex was $75m in 2022, $30m in 2023. The new loan provides around $50m capital and removed amortization loan releases $25m - so potential $75m capex.

For reference the original 2022 programme was for $47m targeting 18 wells (12.6 net) and 5,250 boepd peak production increase.

For clarity "by getting finances in order" I mean laying solid foundations for growth.

It felt like 2023 was a year of stagnation but reading between the lines it was a necessary year to get the finances in order. It is interesting in the WHIreland note that the Trafigura facility was not ideal funding set-up and i3e were "constrained". It never seemed great. Being backed by a major bank in Canada (wonder why can't announce who it is?) and moving to canadian reporting, hopefully allows value disconnects to close.

Will wait in anticipation for the announcement mid-april. Perhaps some wiser on here could suggest a capex number that may be available.

Tony, as we know, those pipelines were a key driver for the value disconnect in Canada and why the management felt there was a market about to go through some fundamental changes. All sounds positive and hopefully makes the difference. Changing to canadian reporting is essential to get that market to buy in - they want to compare apples with apples. It will also benefit UK investors seeking a more transparent comparison to Candian listed valuations.

Price at 9.99 - break the 10 today!?

We all know the announcement will come at the end of March. Not sure why they said "over the course of March" as it just makes it seem there is a delay. Say March or "by end of" and people will be happy if it comes earlier.

SP looks poised to break that long term downtrend, a good update could be a significant event.

I wonder if there is something unusual in the account set up that is leading i3e to do this every year. Seems a bit of a nuisance and I'm sure the lawyer fees are not small. The previous one was for £50m reserves (if I'm not mistaken).

Tony, I wrote a reply yesterday which has for some reason not posted and no time to go into detail now. It was Graham Heath that said it in an interview, he didn't join all of them and it was around 2022 - someone might have time to check. The strategy was to not hedge while prices were high to get maximum upside.

All this talk of hedging reminds me of the companies bizarre policy to hedge when prices are low and not when prices were high. Meant making a fortune over the spike, inflated the divi, but (quite obviously) not sustainable or long term, hence the crash in revenue. Seems mad when gas was 10 dollars and oil 120 odd, they didn't hedge the whole lot! Hopefully that strategy is put to one side.

With current net operating income, i3e should be trading at 15p in a fair market (in my opinion).

£73m NOI to £110m MCAP is a crazy valuation for any company, never mind one with low debt, 11% dividend, steady production and opportunity for organic and inorganic growth.

It needs sentiment and that is only going to come from consistent news or company changing news. The RNS today indicated there is enough in the background that can be hopeful of either soon.

Great broker note and very solid RNS. Hopefully 2024 is one of getting back on track. Management have continued operational excellence (just need to improve comms).

Trading at 1.5x NOI, there's lots of scope in simply aligning to peers.

Like the notes on oil focus, drilling and capital "initiatives". If nat gas could perform OK and oil holds then look forward to a positive 2024.

Thanks Joe, didn't know that. I don't trade so not familiar with some of these more technical things!

Three days this week the opening price has been 9.5 then immediately dropping, strange action.

Hopefully Tony. Its been a while since Graham Heath said the company plans to "really go after" their oil plays. With sub 1 year ROI and Trafigura happy to take production, risk is limited.

Still can't believe the sp is in the mid-8's. How did it open 9.5? Crazy swing on no volume.

Emailed a month ago asking why delay to 2024 guidance and received a response today. Nothing unreported obviously but they mentioned many peers report years guidance in q1 and it will be reported ASAP as evaluating options. Take from that what you will.

For me, it is simple, drill as many of the quickest return oil wells which I believe is Clearwater. I3e have to start proving up the land at Clearwater and Simonette with repeated wells or it will always been seen as negligible value.

Paying interest on a sum of that amount and not deploying it seems poor planning. The whole principal of a loan is money that you believe you can grow more than the interest rate, otherwise don't proceed.

Radio silence is killing i3e. For first time, I'm seriously considering selling out completely. Last time I sold 50% the sp was 106p. What is crazy is nobody currently has any idea what the company is doing. Zero knowledge if they are drilling, sitting back, trying to farm out. I don't belive I've ever been in a stock where I couldn't tell you what the company is currently doing (or at least what they have you think they're doing). I'm a massively patient investor but I'm running out fast. Honestly hope i3 are sold off, board haven't got it right with this one. Will not be valued by Canadian or UK market.

It was always the strategy to close the gap between oil and gas weighting. However, year after year the board decides to drill the same wells and keep a lowly 20% (?) oil.