Member Info for tonynorstrom1

"Tony to answer your question (again), the deal was a good one with respect to how much we paid versus the value of the assets." To quote Graham - Its a great deal for shareholders - I agree !

"But it was structured poorly for PIs, meaning that added value hasn't been reflected in the share price. That doesn't mean the share price won't go up." This doesn't make complete sense to me - the value reflected in the SP affects all SH's - Institutions and PI's alike. The only difference is the price at what Investors have managed to get in at. You for example are in at an average of 5.5p !

"It will on a lower gradient, over a longer period of time. But it will go up more slowly (due to II profit taking - remember Graham's words), " - In the short term I probably agree with this !

"and won't hit the same highs in future had debt been used." I don't necessarily agree with this - its possible the market would have responded more positively in the short term but by no means certain. Having added $56m to the balance sheet via debt - the question then becomes how do i3e finance the rapid expansion of production within their own portfolio - such as Simonette. Some may say farm in which I think will happen and could happen pretty soon though if you had to wait as long as Serenity - it could take some time. If you wanted to give yourself options and fund through debt - how much could you borrow if you have just borrowed $56m on an acquisition and have $32m in loan notes?

"So I'll say again. Great deal. Really, really great deal for IIs. Great deal for bod." - agreed !

"Nowhere near as good for PIs." - disagree, its a great deal for all shareholders. If its a bad deal then its a bad deal for all shareholders. Again your talking about price - you are in at 5.5p and many PI's are in at sub 11p - great deal.

"Arguing against this would mean you refuse to acknowledge the share price." 2+2 = 5 - I dont agree !

"Or how we'll struggle to break 15p in the near future." - Could be some element of truth hear but it depends on what you define as short term and this ignores the fact that it is not Managements job to Manage the business for short term share price appreciation - their job is to manage manage for the medium and long term value accretion. There are many things they could do to affect SP in the short term - some are illegal and will be bad for SH's!!!

"Or what the share price would be if they debt funded - one of those questions you refuse to answer." I have no idea what the SP would be if they funded via debt, I'm not even sure it was prudent to take on debt to fund the acquisition for some of the reasons I've highlighted above. Its quite possible that they SP would have responded more positively than it has now (in the short term) though as I've said , its not I3e's job to manage the SP with a short term view. In the longer term - I think debt was not a good idea again for some of the reasons highlighted above.

have

I was reading an article on OilPrice.Com on the spat between the UAE and Saudi. The jist of the article was that UAE are in favour of opening up the taps and extracting value out of its reserves whilst there's still value to be extracted.

I think that this is very much i3e's strategy i.e. expanding production rapidly and returning value to shareholders via dividends and possibly via share buybacks later on when they cannot deploy capital more profitably. i.e. making hay whilst the sunshines.

This deal including its structure very much aligns with this strategy. Nice to see the SP move up a little first thing this morning - let i3e get the new shares registered and lets see where we go.

Lets get our votes off to i3e whilst the passions are still high - a really good opportunity for PI's to have their voice heard!

Tomhuk2000,

Not sure what you do for a living but I think I might nominate you for a nobel peace prize !!

Pete,

Its truly not a cop out - I have answered lots of question - backed up many with numbers from spread sheets, references, answers backed up with input received from i3e via responses to emails i've sent. Most people here know that I do a little bit of research to back-up what I post.

If people don't accept what I post - that's ok, free speech and all that and a right to hold a different opinion - great !

Fastfoods Modal - well and truly busted !

The good thing about this deal - due to added scale, FCF and resultant increases in production - I think i3e will be able to increase the dividend and SP even if the Oil price were to fall slightly.

https://oilprice.com/Latest-Energy-News/World-News/Oil-Falls-Slightly-Despite-Crude-Draw.html

"As has been argued on here it's not about whether the deal is value accretive, it's whether it would have been better..........................."

Well you will have to forgive us - if us mere peasants cannot even ask the right question - then how can you possibly expect us to come up with the right answer.

My thinking all along has been - if you can do materially accretive deals, repeat it over again, keep the debt low - then that's got to be good for the company and the share price ------hmmmm maybe i've got to rethink this?

GGG,

At the present time - I'm not going to answer any more of your questions - mainly because i've answered them already and you just don't accept the answers which is ok. If Pirate Pete or someone else feels there is a question to be responded to - i'm more than happy to give it a go even if its a repeat of one of your questions .

And talking about not answering questions - you've failed to answer a very simple question that i' ve put to you several times and I think would be of interest to all regardless of the stance on the merit of a placing v debt

The question: Is the deal a good deal for Private Investors - simples yes or no.

We know that we didnt get the same opportunity as II's at the placing which by the way can be addressed now by buying in the open market, but putting that aside is it a good deal ?

Also put aside the question of whether it would be better with debt - not because its not a good question - it is, but because its irrelevant now - its not the option management chose to go.

Tomhuk2000,

I was so busy focusing on jolly roger and his Parrot - I missed your posts - you've touched on a number of valid point - well put.

Clearly not everyone one is convinced - my suggestion is for PI's to step up and vote - there's 5 resolutions. #1 is the current Deal, # 2 looks like authority to issue more shares in future, im a little confused about resolutions 3 & 4 but number 5 is the authority to buy back up to 100m shares. Plenty of options to vote for - seems like most here would favour a buy back at some point, some may also approve of current deal but have reservations about additional shares in which case you could vote for 1 & 5 and reject the rest. Point is you should vote - pointless coming on here and complaining and then failing to register your vote.

gla

Pirate,

Previous response was a little flippant / tongue in cheek - but I think just about all the questions have been asked and answers provided - it come down to what you are accept and what you dont.

If you really believe there are questions that have been asked and left unanswered - I would be more than happy to give it a stab - let me know.

Pirate,

If you were awake and smelling the coffee - you would have notice that I have in fact answered GGG's questions - he just doesnt like / accept the answers.

Flabby,

I respect your opinion and you may be correct - imo you are not - but you maybe. Touching on a couple of your points:

1) In what respect do you think i3e has sold PI's down the river - can you be specific. There are metrics to say this is not the case. If your talking about SP, then the yes - the the current situation is a little disappointing. However, i3e's job is not to manage the SP - their job is to stabilize and grow the business and accrue value to shareholders over the medium to long term - the SP will follow if they do the right things. If you look at GGG as an example - he has already said he would be looking to cash out a significant portion of his holding at 20p, in fact he sold shares at 16p. If this was the sole measure of success - i3e could quite easily manipulate the news flow allowing GGG to sell off his holding and the rest of the shareholders would be left saying - wtf! Do you think he would be complaining then ?

2) "A loan would have stabilized the SP" - you don't know this at all - you are guessing, GGG is guessing. I mentioned Hurricane the other day as an example - not for one minute do I think we are in the same boat as hurricane - I think we are much better than that - however, some SH's there are looking at their cash (its significant), their production (its significant) and their FCF (its significant) and are thinking how can we not be a going concern. Well the answer is that they have not run the numbers. Shockingly HUR need oil at $80-$85 to be able to operate as they are or otherwise they have to restructure the debt.

GGG is talking about "good debt" and "bad debt" - in my humble opinion he's guessing again - its no bad thing in the current environment to have a relatively low debt load.

good luck and please vote on the resolutions. If you hold your shares though an online broker - you need to vote soon - it takes a little while for the votes to get through to i3e.

GGG,

If your going to quote Graham - you might want to consider quoting him correctly ! He did not exactly say the underlying value was 21p - to be more accurate what he was saying that given the market was pricing at i3e at 16p only a few days earlier, then on the same basis (post deal)the market should be pricing at 21p. I think Graham actually believes the shares are worth more than 21p.

Piratepete,

Genuine question : what is it precisely that you feel is a bad deal for PI's

1) Fall in SP
2) Dilution of existing assets such as Serenity
3) The fact that most PI's not given a chance to buy in at 11p ?
4) i3e have paid to much for the new assets?

Are you going to vote on the resolutions - I think you should. I sent an email off to Hargreaves this morning.

https://twitter.com/OilGasTracker/status/1414864675922194432

Interesting graphic although slightly misleading. When thy present value metrics against flowing barrels or 2P reserves - you need to know if the production is Oil Rich or Gas Rich otherwise the comparison is not apples with apples. Nostrum Oil for eaxmple produces about 38% Oil / Condensate v about 19% for i3e.

Has anyone read the shareholder circular with regards the placing. In addition to the 360m shares in the placing and primary bid, resolution 2 looks likes it gives them authority to issue a further 360m shares at sometime in the future.

Any idea what they are trying to achieve with special resolutions 3 & 4 ?

Resolution 5 is seeking approval to buy back up to just over 100m of its shares.

My final top up today at 11.6p - lets see !

Next news - not sure - could be one of:

1) Serenity
2) Farm In to Simonette
3) Spud at Wapiti
4) Drill Results at Marten Hills
5) Perhaps a debt Deal and another Drill Program
6) Or an operational update covering any of the above plus work overs

A lot of catalysts to get the SP moving north !

GGG,

This will my last post to you on this topic as I'm sure that many will agree that the discussion has gone past the point of being useful:

"Integrity" - please look up the word in the dictionary - it mean "dishonest". I have never ever accused the BOD of acting dishonestly or of lying or resorted to calling them crooks - I don't believe this. I strongly object to you saying otherwise - please don't draw me into this discussion.

As for as what is said here making a difference - it certainly can if the narrative is picked up and gains momentum on other platforms - I recall something being said a year or so back on twitter about oil price and applicable benchmark pricing in relation to the Gain Acquisition - i3e had to put out emails to investors to quash the rumours. The're not likely to do that here - but keep it up and you might get a letter from their lawyer !

Lets hope there's some more good news shortly so the discussion can move on constructively !

"Do me a favor, don't start repeating................." - do shareholders here a favour - sell up if you're not happy and move on !

I hold a different opinion to you and you should respect that - you don't have to agree with it but you should respect it and stop trying to ram your opinion everyones throat. Some of your arguments don't even make sense anymore - if you think you've been "fu_cked" - do the sensible think for yourself and sell up and buy into something you believe in ............and do the right thing by fellow shareholders here and sell up and stop bashing i3e.

Piratepete,

You are correct but it does not really alter the point I was making - which was the issue of new equity - had this been discussed openly a month ago - SP is likely to have gone down as it has and the placing price would have been lower. We can argue about whether it should have been equity or debt - open minded posters can look at the arguments and make their own judgment.

About whether you are a SH or not - you seem to be making a concerted effort to talk down i3e. I agree that
there are two many options for a start (imo) and the vesting criteria are poor. However, you are making it out to be worse than it is - they are not new options as you seem to be keen to stress but are pre-existing options that could have been issued several months ago - I provided you the link or reference.

Again I agree with your comment on some Companies such as Kistos and the treatment of options of lack of in the case of Kistos. The CEO has done very well for shareholders in his previous company Rockrose and his stance with regards to options is admirable but it is by no means the norm and does not demonstrate i3e's lack of integrity.

and this by the way is why I think all things considered , i3e might not have handled the rights issue all too badly. Imagine if we had been discussing a rights issue one month back and then trying to raise the funds - what will the offer price have been then ?

Piratepete,

Serious question - are you a shareholder ?

I did not take it at whinging at all - I took it as highlighting the value creation of the deal and assuring investors that in their opinion - the market has got it wrong and the disconnect will be righted shortly.

Whenever there is a rights issue or talk of a rights issue - the share price nearly always reacts negatively in the short term - no great powers of prediction there. You cannot always run an business worrying about how a decision impacts the SP today, tomorrow or even next month - you've got to be looking further ahead than that .