Member Info for tonynorstrom1

Senseman - go back and re-read your last 10-15 posts - what a load of rubbish !!

senseman,

do me a favour - try shinning a light in one of your ears (either one - it doesnt matter) and let me know if you see anything coming out of the other one.

you do know all this stuff about MM wanting your shares is sh_t dont you. They don't care whether they sell you a million $ worth of shares at 1p or 3p - they get a commission off the trade period.

Interesting presentation from Headwater Exploration. It includes information the following information:

1) List of operators in Clearwater and a map of locations including i3e
2) Production numbers of top 20 wells in Martens Creek 260 -700 boepd and 65 - 100 boepd per lateral

So what will I3e wells produce - Ron thinks we have a gusher !

https://headwaterexp.com/wp-content/uploads/2021/08/Aug-2021-Investor-Presentation-FINAL.pdf
https://twitter.com/eri****tall/status/1431294825081491473/photo/1

Any one notice the couple of RNS’s.

when do you think you will get round to checking the location ?

Interesting to note that one of Baytex's wells was spud on the 8th July and they already have 30 day stabilized flow rates. I3e's first Martens Creek Well was spud on the 15th June and no news yet - what's that telling us?

I don't know how we missed this at the time - but i3e even more compelling now - much higher FCF and Dividends in prospect going forward.

https://www.sharesmagazine.co.uk/shares/share/I3E/news/shares

Buy i3 Energy to play oil price strength and imminent dividends
Investors looking for a way to play the current strength in oil prices should snap up i3Energy (I3E:AIM). It is buying up conventional oil and gas assets in North America cheaply and plans to pay dividends from the resulting cash flow. The company’s strategy echoes the one pursued successfully by former AIM peer Diversified Gas & Oil (DGOC), which is now a FTSE 250 company. While ...

I need to take another look at Kistos - last time I thought it was expensive, high debt and the only attraction to me was the CEO based on what he did at Rockrose but its hard to argue with the SP - is it justified or is just based on reputation?

Sorry - I meant EMO.

Yes the Doc has been quiet - he's still in i3e, but he may have scaled back a little as with some of his other holdings to plow more into EMO. He owns over 2% of EMO so quite a chunk of change.

Nice close on i3e today - lets hope it does similar on the TSX.

News flow should start again anytime now including interims and H1 dividend - last years interim was issued on the 8th Sept.

Eringael,

Thanks for the information - no much happening with i3e today except a very gradual move up which is good. So I've added a couple of stocks to my watch list:

PTAL
IMO (I have a few of these - more drill results out in the next week or so. Doc's Jones's number 1 pick)
JOG (A new WHI report out today - they maintain there 622p target price)

Viable,

Thank your very much - ive seen the presentation but the oil report was new. Who is PeruPetrol - is the oil sold through them? I assume no payment issues and account receivables are pretty much up to date ?

thank again - looks an interesting investment proposition.

At face value - the RNS seems quite positive - why the relatively low volume ?

Bartlebobton,

Well what's your take on the deal - it appears a step in the right direction though the outcome is dependent on bondholders accepting the offer.

I'm not currently a holder here - I saw Malcy's latest blog and his 45p target price. I've taken a look at the presentations - the number look pretty good - low net debt, cheap on a EV/CF measure etc and I see plans to double production in the next 12 months.

The only downside I see is the operations in Peru and the associated risks - an oil field was shut down last year for some time due to rioting. Is anyone able to comment further on the risks including how many times have operations been interrupted in the last 2-3 years and how many days lost production. Also any issues with the Government / payments?

I want to take a closer look at the numbers - it looked very cheap compared to Canadian peers on a EV /CF multiple but its FCF yield looked a little lower than I would have expected at 21% . If you look at Canadian Peers - some of the better names are trading at 25-30% or more. Anyway an interesting stock that I want to find out a little more about.

GLA

Not sure about that - we did have one announcement in Canada that was afterhours in the UK and was followed up by an RNS the following morning so maybe its possible.

Well you did start off your response with:

"Other than the fact that Petrotal has;
- less than half i3's production
- less than half i3's 2 p reserves"

The production is a bit misleading as I pointed out, what your really interested in is revenue. Also reserves is worth a mention. If you from remember WHI's last report, they said they had shifted from a discounted cash flow valuation model to a cash flow multiple - this in effect places much more importance on current revenue and less on reserves. What this means for I3e is that if they want to see a step change in SP there going to need to bring more of these reserves into production i.e. Simonette etc. I dont recall whether it was WHI or Tennyson - but they stated that Simonette was going to be formally marketed as a farm-out opportunity later this year - so hopefully no to long before we hear something there.

Anyway thank for the response - it was what I was looking for - it seems the only real negative thats been raised so far against PTAL is the location - otherwise the investment opportunity looks promising.

Talking about risk - i3e is not entirely without risk - in the UK there's growing opposition to new drilling in the North Sea (I wonder whether this has had any impact on Serenity) and also the cancellation of pipelines in Canada. So the regulatory environment in Canada is quite good but there Southerly Neighbours are completely unreliable.

Ron,

Not sure what you mean by I should no better than that - these are the approximate selling prices of Oil / NGL & Gas :

Oil $68
NGL $33 (NGL's vary by product but i3e's average is around 50% of Oil at present)
Gas $23 (per bbl)

I know gas prices are higher in Europe but i3e is producing and selling in North America. If you had a choice you'd want i3e to be selling Oil over NGL's and Gas all day long and for breakfast !

What am I missing ?

Ron -I Meant to say I agree !

Another potential boost for the SP is the expiry of the gas hedges on the 31st October. i3e obviously did not forecast the Summer gas prices and hedged at about $2.35 which is a hit to revenue of about $15m over the next 12 months at current prices.

If gas prices remain at current levels or above, they presumably will be able to re-hedge after the end of October at significantly higher levels meaning that the SP should move up by 3p or more if the same cash flow multiple is to be applied to valuation.

Ron,

I dont disagree - I3e is the better stock in my opinion and ticks more boxes including the crucial one of being in a much safer jurisdiction.

However, PTAL is an interesting stock and you have missed the giant elephant in the room with PTAL -its production may be half of i3e but its all oil - which means it generates significantly more revenue off its 10k barrels than i3e does of its 20k barrels. The other thing is its gone from 0 to 10,000 is a couple of years and if you believe the presentations it going to add a further 10,000 within a year or so. Also not to different on the net debt front as it has something like $70m+ in cash. The biggest negative is its operations are in Peru although it seems Peru is not as bad as many other locations.