Member Info for tonynorstrom1

GGG,

I agree on the resource mix, however, the financials seem to be straight forward - the're paying $32,500 per flowing barrel - it shows the value of production without a debt load. I3E has a relatively low debt load especially in comparison to its Canadian Peers.

ENQ itself has a high debt load which goes a long way to explain why as an existing producer of approx 45k bbl/day are paying more than their market cap for an additional 10K of production .

Just took a look at the RNS - it’s an interesting transaction and looks like their paying top $. Not seen all the detail but I assume the assets come free of all incumberances except decommissioning costs. I agree that this just underscores how cheap I3E is.

B00oom,

You cannot just look at production and share price - some of the recent posts looked at EV/Flowing Barrel and EV/2P.

Fast Food - if you are looking into this - can you calculate the above values.

You are correct - warrants at 40-55p will lapse

Cut and past from the re-admission document:

"4. WARRANTS
4.1 The Company has granted warrants over 65,483,293 new Ordinary Shares (together, the
“Warrants”), of which 58,694,348 Warrants remain outstanding. The Warrant Instruments
entered into by the Company and their key terms are summarised in the table below: "

the 141 million figure I reference dI believe is the sum of the warrants above, plus the 71m Options the Company say they will issue (nearly all at 5p, 500,000 at 11p) plus I assume 12m options already in issue.

Fastfood,

Have you looked at page 650 section 4 of the re-admissions document. It states that there remain 58,694,348 warrants remaining. Details as follows:

Entity----------------------------Qty------------- Strike Price----------- Expiry

Lombard ------------------4,225,204 ------------40-55p------------ 31 May 2021
Loan Notes Holders ---40,139,440 --------------0p ---------------31 May 2023
BHGE----------------------- 5,277,045 -------------56p --------------18 Sep 2021
Bybrook-------------------- 8,000,000 --------------0p ---------------8 Nov 2023
Other----------------------- 1,052,000 --------------0p ----------------6 Dec 2023

Fastfood,

Have you looked at page 650 section 4 of the re-admissions document. It states that there remain 58,694,348 warrants remaining. Details as follows:

Entity -------------------------Qty ------------Strike Price ---------Expiry

Lombard -------------------4,225,204 ----------40-55p ---------31 May 2021
Loan Notes Holders---- 40,139,440 ----------0p -------------31 May 2023
BHGE ------------------------5,277,045---------- 56p------------ 18 Sep 2021
Bybrook------------------- 8,000,000 ------------0p --------------8 Nov 2023
Other ----------------------1,052,000 -------------0p-------------- 6 Dec 2023

Fastfood,

Have you looked at page 650 section 4 of the re-admissions document. It states that there remain 58,694,348 warrants remaining. Details as follows:

Entity Qty Strike Price Expiry
______ ______________________________________________
Lombard 4,225,204 40-55p 31 May 2021
Loan Notes Holders 40,139,440 0p 31 May 2023
BHGE 5,277,045 56p 18 Sep 2021
Bybrook 8,000,000 0p 8 Nov 2023
Other 1,052,000 0p 6 Dec 2023

JoeSoap,

Thats not necessarily true - the price of any oil company will be related to amongst other things:

1) Quality of the assests
2) Quality of the Management

I3E is trading at a substantial discount to its peers. In addition the POO has risen $3-4 in the last week or so and I3E's SP has not budged.

On the other hand you would expect good assets to trade at least at Peer Group metrics and also to rise with the POO.

If I3E have any good news they need to release asap if for no other reason than to giver this board something to talk about. We've had a lot of good discussion here the last week or so on very thin gruel.

Kaneonaim,

Thank you - was not meaning to be funny but again thank you. If you are trying to infer that an Institutional Investor would not accept a 50% return on his money in less than a year then I think this is a naive view.

If you are laughing at my maths because 9p is actualy an 80% return - then ha, ha, ha !

could be but I dont think so - if an offer we to come in now at a premium of 50% say (9p). I think the Institutional Investors may well likely accept.

This would leave many long term holders in the hole and not make Management the millions they hoped for but still a significant return for the Institutions.

Also, if its on a board already and had any hint of substance - you would expect the SP to have taken a significant bump up. Where did you see this posted ?

Tomhuk2000,

The buyout rumour is interesting - to be clear I have not heard it before. I dont think it would be good news for Management or long term holders . The institutions are in at quite low levels and they would be in a position to approve an offer that would offer a significant return for the but not necessarily for Management or long term holders imo.

Doorstop,

I dont know whether you listened to the latest Proactive Interview / Presentation with Majid on the 10th December. There he talks about debt/dilution and deals. He talks about looking at smaller deals and also bids that have been unsuccessful because in I3E's view the aquisition metrics have been too high. Worth a listen if you have not already done so. He did mention that Gain / Toscana were done at just over 1 years cash flow and they were looking at aquisitions up to 3 times cash flow so you could be right.

Like I said, unless they have a deal ready to go - drilling just seems to make sense from the information we have imo.

Doorstep

You are right , however, assuming they have to pay $10,000 per flowing barrel - that comes at a cost of $50m = additional debt and probably substantial dilution. This is a big deal and if you take Majid at his word then they are not looking at big deals / dilution / heavy debt in their current position.

We are at a price now where it is cheaper to drill for oil than to buy existing production. I3E have previously stated that new wells can be drilled at about $1m per well producing at about 200 bbl/day i.e . about $5000 per flowing barrel.

Gain was bought at about $5,800 per flowing barrel at almost the bottom of the market. I would imagine that they would be paying atleast double if not more after the recent rise in the POO. The other advantage of drilling is that they can add production incrementally now from cash flow rather than have to raise funds via other methods. Unless they have a deal ready to go right now - I would expect them to announce a drilling plan shortly - maybe 5 or 6 wells to start with and then a couple of wells a month with the aim of getting to 15,000 bbl /day by the end of the year.

Doorstop,

He did reference acquisitions and the need for Capital. He mentioned small aquisitions and the possibility of funding from the balance sheet. He also mentioned debt. Current debt is around 1x next years fcf . So provided Oil prices remain supportive - there is an opportunity to fund from additional debt.

Majid seemed to be clear that there would be no more equity raises at current levels. My take was that we would have to re-rate significantly before any further raise - my guess would be at least double.

Duster,

Majids comment was in relation to further equity raises. I’m talking about ( and the re-admission document is referencing) options. These are already approved and means the share count WILL go up from the current 700m to 840m sometime in the near future. You should take the time to read some of these documents.

JAdam,

For completeness - I found the details of the additional 70m plus options - Refer to section 6 of the admissions document (around page 650).

These are options for Management and Employees of I3E UK and Canada. Nearly the full 70m will be issued with a strike price of 5p so pretty inconsequential for existing shareholders other than further dilution - im feeling generally less positive about this.

Only 500,000 shares have a strike price of 11p and are referred to as EMI options - dont know what this means.

9000 bbl x $1 x 365 days = $3,285,000

exchange rate at 1.3 and royalty at 15% revenue ( not 100 % sure of this number but I think it is in the ball park) = UKP 2.1 m approx.

I know we are 40% oil but gas prices have been on the rise also.

I'm not questioning your numbers which were right at the time - im just highlighting what the November Mirabaud report says that can be found in the Investor section I3E's website. I tried to find another reference to total share options and warrants - could not find but I do remember seeing somewhere a reference to 840m fully diluted. I emailed I3E to ask when the next financial report is due which will of course give the correct numbers.