Seplat Energy's CEO Roger Brown hosts London Capital Markets Day and focuses the strategy. Watch the full video here.
Good interview with Eric Nuttal - gives his thoughts on valuations (EV/CF) and also debt and where Companies are trying to get this to as a multiple of FCF. Also gives he thoughts on some of the best Companies in the sector which he is buying.
Useful to compare to i3e and figure out where we sit - I think we sit quite well.
i3e know Eric pretty well I think and will probably be talking to him again.
you might have to retype eric nuttall (one word) to activate the link
"@Drjimjones The dividend was an essential part the restructuring of the company, the reason they were able to raise the capital to enter Canada in the first place. The acquisition is extremely accretive to fcf, nav, etc etc this complaining over what is a very good deal is silly. The weakness will be temporary imho, artificially induced from the PP… just run the numbers. If your only evaluation data point is share price on a day to day basis you are not investing. "
this RNS relates to 53m options at 11p - so fare enough - the Company will get £5.5m to add to the coffers albeit that existing shareholders are diluted by an additional 53m shares.
You will also note that in the notes there is reference to an additional 75m options issued
5p (previous placement) - so when these are exercised there's an additional £3.75m to the coffers at the expense to existing shareholders of a further 75m shares dilution.
Isas is correct - these are options to buy at 11p per share - nothing has been bought and contrary to what an earlier poster said - they indicate no confidence or otherwise in i3e or its share price because they are issued at zero risk to the employee i.e. if the shares never go above 11p, the employee is under not obligation to buy and will just let the options lapse.
In fact what happens in many cases is that if the shares move above the exercise price ( 20p for example) - there's often an arrangement where they can sell the shares first, pay the option price and pocket the difference (9p per share) without having bough them in the 1st place !!
Hence the term pigging at the trough. There's way too many options and this is where I think quite rightly (imo) the BOD / Management should come in for some criticism.
Any thoughts on this Parge - looking at some of your past posts - you should have something insightful !
Odds appear to be that the farm-in partner is Repsol Sinopec. Modifications on the Bleo Holm are supposed to start last month with drilling in Q1 2022. It does seem late now to kick off a Serenity drilling program in 2021. You would assume that any drilling would be coordinated with Tain which might put it in Q2 / Q3 next year. The only information in Fandangle's post that appears to be new and specific is the timing of the drill although i3e have previously said that drilling could be 2021 or 2022.
I agree with the porosity but flow is also linked to the viscosity i.e. if the oil is "heavier" than expected, flowrate will be lower.
How do you read the RNS - do you thing we have way too much time on out hands and are reading too much into it !
Performance over the last month on a couple of tips shared here a few weeks back by regular posters:
RECO = -4.19% (positive reports - potentially the biggest oil find of the last decade)
NCCL = -14.5% (decidedly shaky - deadlines slipping and no to little news)
PRD = - 69% (this supposedly has great management!)
i3e = -9.8% (Coiled spring in my opinion - getting ready to pop !)
EMO = +25% (Doc's No 1 pick - he's up about 600% in 3-4 months and he thinks a lot more to go!)
I agree there is something not quite right about the RNS causing you to try to read between the lines. The omission of "pleased" in the opening line of the RNS I don't think is a mistake.
Majid talks about being pleased with the drilling operation - so on budget, schedule etc but no mention of the payback period as for the Wapiti Wells lower down in the update although the RNS does go on to say "These Marten Hills and Wapiti wells are expected to add very profitable incremental production and cash-flow to the Company's portfolio".
Oil is there, porosity of the sand is good - so is the flow rate meeting expectation ? Oil quality in the Clearwater varies significantly across the play from Condensate to Heavy Oils - perhaps they are looking at some enhanced recovery techniques ? So probably a good update but perhaps not as bullish as some of us were expecting.
The WHI report is encouraging and confirms what my spreadsheet was telling me i.e. that NOI should be significantly higher than i3e are currently reporting. I thought it was perhaps down to hedging , but apparently the newly acquired production is un-hedged. The brokers have miscalculated once before but I suspect that they have been more careful with their numbers this time round - the Tennyson report should tell us more. All very positive for the the h2 dividend which I think could be 30-40% higher.
Not sure about that RNS - anyone notice anything odd with the opening sentence:
"i3 Energy plc (AIM: I3E) (TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, announces the following update."
Nearly a 7% stake or 70m shares - a couple more of these and it wont take long to churn through the overhang !
Amati Global Investors is an independent specialist fund management business managing funds investing in small and mid-sized companies.
"We aim to bring the craftsmanship of a great violin maker such as Andrea Amati, with the thoughtfulness, experience, skill, care and attention to detail that this brings with it, to the ever shifting and hugely demanding job of constructing robust and responsive portfolios of investments that hold the potential for long term growth."
Just what we need - big tits along with violin makers !
You've been called out before for not posting anything of substance and merely just trying to bate people - please try and add something of value.
I think what many on here do appreciate is quality research / discussion - What readers probably tire of is rantings of ill informed posters of either a positive or negative slant.
What is the point of your post to Ron Bruce on Majid's salary 2 years ago - the answer is you probably don't know. If you do, please tell us, including what his salary was, how it relates to the median in the Oil and Gas Space and if it is out of whack . If so have you tried to address it with i3e Management and if not why would you think people here are interested in hearing the views of someone that is just ill informed, not interested to find out and really is just out stir the pot?
My experience with i3e is that they do respond to genuine SH questions, don't dodge difficult questions and have at least in the past provided a rational response to all questions posed - they did on debt and I would be surprised if they were not able to do so on salaries. In fact I will probably ask this question at some point in the future if I feel it is an issue!
RonBruce (or is it JAdam - kindly confirm),
I agree with what you have posted - I saw someone post that the average CEO's salary was just over £140k on the AIM. My observation was that it was way low for a resource company though I have not studied in detail. My observation was also that Majids and Grahams Salaries were a tad on the high side but certainly not the double or more that some would have you believe.
However, my point was in the same time it has taken someone to post the query here (which serves very little purpose), you could have posed the question to I3E and got a more precise response for all to see. It seems some people are not really interested in fact but rather spreading misinformation and discrediting the management.
I have taken notice of some of Fandangles posts - I have observed that he has talked down i3e (much like some posters here) yet has claimed to have recently taken a stake.
My impression is that he has no more insight into what's going on than your average investor and probably far less than anyone who has bothered to do any research.
That said, i3e have stated that they anticipate closing a deal in H2, also Repsol Sinopec have stated that FID (Tain) is due by Q2 (gone). So taking these two together - news is due shorty and I would not credit Fandangle of being in the know if they announced tomorrow. I was expecting by Q2 end based on Repsol statements. I still see it as a positive that they have not updated the FID decision in the negative.
Your contradicting yourself - "Not correct, the reason ........Oil Price Collapse, Covid..........."
The net effect of all this is - reduced Cashflow , ability to service debt , ability to take on debt and reduced liquidity in the market i.e. those with access to Captital are able to pick up assets on the cheap those that don't are forced to sell assets on the cheap. I think you've not grasped the correct end of the stick here at all !
I think you have a point about salaries - you've mentioned it more than once and done your civic duty in alerting potential shareholder to the issue. What I don't get is your eagerness as a shareholder to talk down your shares - what is the purpose - how does it serve your interest or any other shareholders. IYou had a chance to takeup this issue with Management and have the question and answer posted on the i3e website along with your other issues – you’ve not don’t it why !
I’ve not dodged any of your questions - I think I’ve answered pretty much all of them - you just don’t agree with the answers. Little point answering more if you are going to dismiss them as “fantasy”.
I was a little concerned at first with the issue of equity, but after having looked at the numbers and tried to understand and followed up with questions to Management - i’m less concerned. So I’ve done my due diligence - if your not going to believe Management - then probably you should be asking yourself whether you should be invested.
I’ll give you my response to future debt / equity if you are prepared to look at the response objectively and answer I question that I’ve felt you’ve dodged.
Anyway the weather is crap today - currently in the pub having a Carling.