Member Info for tonynorstrom1

Jodo - have you listed to the last management podcast including the Q&A session. They CFO answers the question on this topic in some detail - if you havent then you probably should. If you have the same opinion after listening to the explanation - then fair enough ! No need for me to rehash old ground.

Austin,

I'm not sure I entirely agree -there was a lot of negativity about the equity raise / debt issue and it perpetuates if unchallenged creating a negative perception which puts some investors off. When people got to hear the reasoning first hand from Management - I think a few have changed their mind.

You are correct its done and dusted so why the past raise keeps getting brought up by existing investors is quite beyond me. However, they do have authority to issue additional shares so it is still a relevant issue - whats the point of moaning about it on here - why not as a shareholder let management know what you think direct and try to influence future outcomes. Ditto with the options which by the way are linked to equity raises.

Investor activism does work - take a look at what happened at HUR !

Jezzo,

Have you thought about emailing the Company and voicing your concerns ? They are normally pretty responsive if you raise a fair question/s

Jezzo - did you happen to take a listen to the podcast by any chance the the Q&A session?

Its not clear at all GGG that you have taken liberties and misquote i3e / Graham - were not all mind readers. What I can say is that certain people have objected and you are out of order posting such comments on a public forum.

Its not the 1st time either you have done it - I can refer you to one of your recent posts about comments from Doc |Jones on dilution - its in black and white on the CEO website versus your twist on his comments here. Its out of order GGG - you have a right to your own opinions, but not twisting other people words to reinforce you point.

This highlighted by Eric Nuttal - Canadian Companies starting to get noticed in the US

https://www.cnbc.com/2021/10/23/how-one-outperforming-energy-investor-is-playing-the-jump-in-oil-prices.html
https://twitter.com/eri****tall/status/1452667056587952145

1) Sector Rerate
2) i3e rerate
3) Production growth

i3e's path to 30p +

Yoyoma,

No I believe that CMC is pretty close which is quite different from what GGG has said and then going on to attribute the quote to the CFO.

apologies - meant to say "ensure the record is correct"

GGG,

You made the following comment yesterday which I am reliably informed is incorrect. If your going to quote someone, particularly the CFO of a listed company - it should be done accurately. I have Grahams email address so that if you have any queries on this or anything else you can clarify and ensure the record is incorrect.

“The reason we spiked to 16p before the acquisition was the IIs stopped trading in order to get more action from the bod. This comes from Graham himself by the way.”

Cenkman,

KELT used the proceeds to pay down debt - so no debt, net cash but perhaps not loads of dosh .

Where did you get the information on quarterly reports - im not sure its correct.

Vmax,

I’ve quoted what management have stated and also valuation metrics applicable today - how is that personal opinion and who are you to say it’s pathetic - what have you got to say that will enlighten fellow posters.

I think its entirely logical to look at the valuation of peer group companies and then figure out where I3E sit.

What do you want to talk about - needlework ?

GGG,

Theres your problem - “I’ve assumed net debt is in a zero position”. I’ve not assume that - I’ve read the interim report and run the numbers.

You’ve dismissed what Management have said - you’ve not really paid attention to my previous posts and you don’t seem to be familiar with the actual numbers - why would I think you would start paying attention now?

Let’s agree to disagree - I won’t comment on your future posts - let’s move on.

Pirate ,

I don’t necessarily disagree with your comments on options but there has been issues in the past with bonuses just linked to SP performance - it can encourage bad behaviors . There’s nothing wrong with production targets - if there met the SP should do ok. You can question whether the targets are sufficiently aggressive enough which is a good question but is a different question.

PiratePete,

I think you know the answer to that question - I think he may have bought once , but it wasnt very much - I think about UKP 30,000 from memory.

N o arguing about Kistos - its SP is where its at because of the confidence of shareholders in Andrew Austin including a more shareholder friendly approach to options / share awards.

The SP has done great but it does appear to be significantly more expensive than i3e. I3e have to gain shareholder confidence and deliver and the SP will follow.

GGG,

What's wrong with you - we don't have a ZERO DEBT premium because we DONT HAVE ZERO DEBT - we have about $25m in DEBT . Not high by any means but not zero or nearly zero . This is clear isnt it!!! KELT for example have NET Cash - there's a difference - I think just about everyone on here (apart from you it seems) would agree that net cash is better than net debt all else being equal.

You are holding a position on debt that is contrary to what Management have explained in a recent earnings podcast to us all and to you again personally via email. Again most people here will agree that Management are much more qualified than anyone here to make the determination on funding not least because they are talking to the banks and other institutions directly. You are of the opinion that you know better than Management - that sounds like an EGO to me.

I have posted many times on valuation and the reasons (imo) - so im pretty clear in my own mind why we are where we are. I just dont think you have a handle on the numbers - time to move on I think.

Jezzo,

Go to the i3e website - top tab "videos" - then I think it is about 1:45:00 where the question is asked.

Jezzoo - can I ask - did you listed to the last company podcast and in particular the Q&A session where the responded to questions on the equity raise and the timing of it ?

GGG,

With all due respect - with KELT - you don't know what your talking about - you've not looked at it whereas I have spent time studying the numbers. I sometimes think that you don't bother looking at i3e's number properly. Did anything catch you eye in this mornings update for example ?

And I wont even mention NCCL if were looking at the quality of data analysis !

GGG,

This is what you actually said:

"SP reaction is muted for the very same reason I've been saying since it........" >>>>>>> I was merely pointing out that 11-12% is a pretty decent rise and not what I would call muted.

".....just over 20% higher than the raise price" >>>>>>> its actually around 25% which is a pretty decent rise and not what I would called anchored to 11p.

When the "mega raise" occurred - i'm pretty sure that you said we would need to churn though about 10% of the raise i.e. about 40 million shares, its now been several hundred million shares not with standing the fact that the shares have actually moved up 25% so not anchored at all.

I don't think I have recently put a 20p target on - I think your making this up. Secondly when the data changes - you need to revisit your thesis. A couple of things have happened in the last couple of months that for sure have had an impact on the SP and nothing to do with the raise:

1) Serenity has understandably been pushed back from Q2 to Q3 and now to year end.
2) ESG concerns have ratcheted up in recent months impacting the valuations of the whole sector - many Oil Companies have not kept pace with the price of Oil.
3) The latest earnings report was "Solid" as WHI put it but fell short of market expectations I think - It certainly fell a little short of broker estimates. If costs increase and FCF decrease - this will impact the SP - you should know this !
4) For someone that has 4 or 5 million shares - maybe $25 million of debt is next to nothing. For the rest of us its pretty significant and certainly not next to zero. Had they added another $20m as you have suggested - it would be very chunky indeed. Did you happen to pay any attention to the cash balance in the interim report ?

There's a Canadian Company called KELT (operations in Canada) - it has virtually the same reserves, production including mix (oil, gas , NGL's) as i3e but trades at over three times i3e'e market cap. It has certain advantages over i3e such as lower costs, no debt (net cash in fact) and also a significant drill program in progress. I've been trying to dig into the valuation gap with the guys over at the CEO board but so far have not been able to see anything that justifies i3e sitting at only 1/3 the market cap of KELT.

A couple of reasons given by the CEO board for KELT having a premium rating include:

1) Management have a record of delivering shareholder returns
2) Management perceived as being shareholder friendly - CEO takes no salary for example, executive compensation fairer etc
3) No debt (GGG should take note - no debt !! )

So my take away is that Canadian Companies sit at valuation metrics of 1.8 to 4.2x EV/CF - KELT sits at the top of the range and there's a couple at the bottom end including i3e with the average being about 3.2x.

When i3e demonstrate to the broader market that they are producing superior shareholder returns - they will move up the valuation axis - simples. I think this is starting to happen but it doesn't happen over night.