Member Info for PiratePete

Energy Voice.

Part 2:
Production averaged 9,000 barrels of oil equivalent per day (boepd), not taking into account its acquisition of Cenovus Energy assets in Canada, which will be reflected in H2 and averaged 18,741 boepd in the week ending September 18.

The company announced a dividend of £2.2 million or 0.2 p/share on Monday, with the I3E share price climbing nine percent to 14.75pence per share before reverting to 13.5p as of 11am.

But Mr Shafiq underscored that the company, which has been making a flurry of deals in Canada, has “not walked away from the North Sea”.

He added: “As a development it would be almost double the size of our current production level in Canada, just from that one development from three wells.

“That’s the difference between the North Sea and Canada, some of the wells in Canada produce a barrel a day.”

i3 Energy, which has a team of just six in Westhill, will look to “staff up” if Serenity progresses to development, while a UK presence will help it retain a “competitive advantage”.

The firm is also looking at North Sea assets, and said it will assess them “coldly” versus margins in Canada.

Mr Shafiq said: “We’re listed in London, we do have a listing on the TSX now, but all of our institutional shareholders are London-based and our competitive advantage is accessing capital in London.

“So it is important that we have a presence in the UK to maintain that relationship.”

Westhill-based i3 Energy has said it will seek to drill an appraisal of its “company-maker” Serenity project as early as the first quarter of next year.

The firm is seeking to finalise agreements with farm-in partners on the project but awaiting sign off after finances are secure.

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However chief executive Majid Shafiq said the firm is confident of reaching a deal before the year’s end.

London and Toronto-listed i3 (I3E) is hoping for 100 million recoverable barrels from Serenity oil project in the Central North Sea.

The development has numerous “evacuation options” including the Bleo Holm floating production, storage and offloading vessel (FPSO), or the Captain field. However if resources are as strong as hoped, then I3 will go for a standalone FPSO for it.

Mr Shafiq said Serenity remains a “gem” in its portfolio.

“That would be a massively valuable reservoir worth hundreds of millions of dollars,” he said.

“We own that 100%, process of farming out an appraisal well. Deals are on the table that will allow fully carried on the first appraisal well.

“What we’re waiting for is the counter-parties to confirm they’ve got committed funds to pay their share of what’s been agreed, at which point we can sign those agreements and move forward.

“What we would like to do then is to drill a well, ideally if we can spud it in the first quarter of next year. It might go a bit beyond that into the second quarter now.”

A farm out would see i3 retain operatorship of the project and a sizeable stake, Mr Shafiq said.

An appraisal well would firm up reserves and help the company move forward to development, which could also mean combining with the nearby Tain field operated by Repsol Sinopec Resources UK.

It comes, however, after i3 relinquished the licence for its Liberator field in January after being deemed “sub-commercial“.

i3 Energy has also been stocking up on production in Canada via a flurry of deals.

The firm released its results for the six months to June 30 on Monday, with pre-tax losses of £7.8m, rising from a £6.7m deficit in H1 2020

However revenues for the period were double that of the entire year of 2020, rising from £12.9m to £26.4m

23.5 pence if North Sea is excluded.

WHI note out today indicating fair value including north sea at 30.3 pence.

Rough and ready analysis by Jukesy over on the CEO.CA bb indicates that Kelt Exploration which has similar revenues to ITE is valued by the market in Canada at 3.3 x ITE’s market cap. This being the case there is lots of room for I3e to grow. As Jukesy says we will have more up to date information next week on publication of the Financials.

Nomad - I think Tony’s right about waiting to see which way the wind is blowing at COP26 and Cambo before any one commits to a farm in on Serenity.

DOPW - Don’t worry, I’m pretty sure you will make money with I3e (it’s just that Management with their share options will make a lot more than us!)

Tony - I know you asked the question of Barnyards but in my own view much of it comes down to trust. Kistos management have invested on the same terms as retail investors, there are no share options whatsoever and people have the sense that Austin really is looking after their money and treating everyone equally - plus his stewardship of Rockrose saw investors bag in excess of 40 x. Perhaps he was lucky but investors seem to be giving him the benefit of the doubt and the recent hike in gas prices is not hurting either. If we compare with I3e I don’t think that level of trust is there yet after management crashed the share price to 5 p (down from about £1 I understand). We then had the recent fund raise (for institutional investors to all intents and purposes at only 11 p which stuck in the throats of many private investors. Generally I3e is a good company with great prospects and it will do well and we will all make money. Management just need to treat share holders with a bit more care.

Bit of a rubbish day for all of my shares today - only exception being Kistos which is up over 8 pct.

To be announced 27 September.

… sorry - have only just taken in the “other international securities” aspect of HL’s response to you. Looking at Yahoo Finance it seems that NBLC.V only started trading on 19 April this year - perhaps the short duration of the company’s listing means they have not yet got around to making it CREST eligible? Worth mentioning it to Doc?

Hi Tony - Ravenscroft is a regular (i.e. not online) broker that I use for my pension company investments - for the stuff in my own name I use Halifax online. I don’t think that HL have given you a coherent answer - how can they put EMO.V on their platform but not NBLC.V (neither are U.K. or Irish securities)?

From Malcy on Twitter
“I have just had a long chat with AA at @kistosplc who is delighted with the numbers as you might expect. The modest hedging is only to cover capex and is the same as before. Everything else in great nick and we both think the shares should be higher. We can now firm up an i/view.”

I bought NBLC through Ravenscroft.

Ron - To be fair Doc’s research is really good - I am up over 100 pct on EMO.V and am happy with the investment case. I would never have heard of EMO.V or NBLC.V if not for Doc. Do I really care if he invests before me and is making even more? I am responsible for my own investment decisions and I am in control of when I sell. Anyway probably enough of this stuff on the I3e BB!

Thanks Tony - I bought some Nobel Resources (NBLC.V) on 1 September at a net cost of just over 60 cents per share. Like you I really appreciate Doc sharing his research. There was an over subscribed private placement which I think closed in Canada on Friday. There was some mention of it being available in U.K. - I emailed David Gower to find out how/whether I could participate but received no answer. Just have to continue buying on the open market I guess. I understand that drilling also commenced on Friday - we might get an update on Nobel tomorrow.

Hi GGG - Don’t know if you are on Twitter but I have just tweeted the company asking when Hanno is planning to carry out a series of media interviews to highlight the importance of the recent signing. I’ll let you know if I see any response.

Thanks Tony - that makes sense.

The 16 August Operational and Financial update is my reference point for the April 1 effective date query.