The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Broker target up to 21p from current 16p
We are valued at x 2 earnings
I3 is one of the best value oil and gas producers on the market
Low market cap to free cash flow here
Good dividend %
I3 Energy PLC chief executive Majid Shafiq tells Proactive's Stephen Gunnioin the sale of a portion of the company's royalty assets significantly enhances the company's financial metrics.
These assets, described as non-core, consisted of 388 barrels per day of oil equivalent, generating a forecasted $3.6 million in cash flow annually. Despite their low production and cash flow impact, they fetched $25 million.
Shafiq highlighted that this sale accelerates value realization, effectively trading less than 2% of last year's production for about 14% of the company's market cap. The transaction has zeroed i3 Energy's net debt and created a working capital surplus, enabling access to a fully undrawn $75 million Canadian debt facility.
The proceeds are earmarked for business growth in Canada, potentially through drilling high-return oil and gas wells or pursuing mergers and acquisitions. This aligns with i3 Energy's strategy of maximizing shareholder value through tactical asset management and sensible acquisition and divestment.
The company retained its royalty position in the strategically valuable Montney position at Simonette, anticipating substantial future gains from its high-potential oil wells.
https://www.youtube.com/watch?v=Il9-eIADc0k
I3 Energy CEO Majid Shafiq says strategic royalty asset sale boosts financial metrics
https://www.youtube.com/watch?v=Il9-eIADc0k
The more I think of that deal the more I realise this is a mini game changer and watch this space now
Journey back towards 20p just opened
Nice timing of the RNS just before the Canadian exchange opens :-)
Wow thats a beauty
Opens door for 2024 Capital Programme RNS tomorrow / this week
Clear the 12p Trend reversal and are moving to 15p pit stop
I reckon we open both feet over 11p tomorrow.
Some accumulating going on here.
I3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) chief executive Majid Shafiq joins Proactive's Stephen Gunnion with details of a positive refinancing for the company.
The company has entered into a reserve-based lending (RBL) facility, secured against its Canadian reserves and assets. The facility totals C$75 million, comprising a C$55 million revolver and a C$20 million operating loan, with an option to index the rate to the Canadian prime rate. This new arrangement offers a slightly better interest rate compared to the previous loan and is expected to reduce as central bank interest rates fall. It also effectively halves the company's current interest costs due to cash balances being held with the lending bank, offsetting the loan.
Shafiq said the refinancing has freed up $25 million Canadian annually, previously allocated to amortising the existing loan. This amount will now be reinvested in the business. Approximately C$50 million remains undrawn from the new facility, available for future investment to grow the business. The flexibility and lower interest payments provided by this facility are highlighted as significant benefits.
Shafiq emphasised the importance of partnering with a Canadian bank, noting their understanding of the Canadian oil and gas sector and the capability to assess risk accurately, leading to potentially lower capital costs. This relationship is also strategic for accessing development capital for organic growth and mergers and acquisitions (M&A). Shafiq said the company's 2023 reserves update reveals stable reserves despite production, with 93 million barrels 1P and 180 million barrels 2P. He said this stability, achieved with minimal capital expenditure due to low gas prices, underscores the quality of i3 Energy's assets and its efficient management. The company maintains a low production decline rate and a diverse portfolio, enabling flexibility in response to commodity price changes.
Looking ahead, Shafiq said i3 Energy plans to use its enhanced liquidity for growth initiatives and will update the market on its capital programme. The relationship with a major Canadian bank is expected to provide significant flexibility and options for the company's growth strategy
https://www.youtube.com/watch?v=sJ3jYYkSoik&t=5s&pp=2AEFkAIB
Green shoots of a recovery playing out
Grab what you can at this level and sit back
Think we might see a nice move in the SP next week
Hence differing legal standpoints and ends up as a legal claim process to be decided by the courts (or out of court settlement).
It is clear corica have a legal team on this and will be pursuing $27m to resolve the matter. This will be a long and expensive drawn out legal process. There is huge danger here now of being liable for the $27m and while this is ongoing really hard to convince another contractor to step in.
If they dont pay $27m in 28 days (and they wont because they are contesting) it will then lead ti court proceedings to adjudicate.
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Corica assures that this measure remains conditional and reversible. Corica has over two decades of history in contracting with major clients and is proud to have had zero litigation to this date.
Corica's recommencement of works is conditional on the Company, within 28 days of the date of the notice, making payment of monies owing to Corica and providing Corica with a Company Deed of Guarantee.
https://www.aetoswire.com/en/news/2003202438343
30p on those figures
"The Company is progressing several initiatives which will be incorporated into an optimised 2024 drilling and capital programme, and we look forward to updating the market on this during the course of March."
I think we will move back above 10p soon
Would like to see this asset move they alluded to