Member Info for tonynorstrom1

just for transparency - I added about 60,000 shares in the last couple of days as a small trading position for ****s and giggles as Carrie Bradshaws husband would say. Just sold out 15 minutes ago (75,950 trade). Hope I can get back in today - just for more ****s and giggles.

nomadinvestor,

Just for reference RRE:

300M plus in cash
no debt
20K bbl per day

market cap 100M

A year or two ago I3E - no debt, 32m shares in issue and planned production of 20k bbl per day in 2020/2021. Fast forward a year or two - 22m in debt, no production, 105m shares in issue.

Oily,

Wouldn't want to be out of this over the weekend hey buddy !?

Whats your well placed source on the Repsol FO saying today ?

Munchbox,

I addressed the issue of PMO debt below - if it were not for this debt, PMO would probably be sitting at 10x RRE's market cap. Then again if my Grandma had two wheels she'd be a biycle.

ferrotty,

That was sort of my point - also PMO have over twice the market cap of RRE. It would be much more than this if they didn't have the $2B in debt that you reference.

Munchbox54,

Someone warned me that you can only say positive things on this board otherwise you get jumped on. "Many other oil companies have decommissioning costs" - a bit of a statement of the obvious don't you think. Costs / provisions are also linked to the size of the asset - no ? So for example BP is likely to have higher decommissioning costs than I3E.

You mentioned Premier Oil with similar decommissioning costs to RRE - but dont t, their producing at over 80,000 bbl versus RRE which is just less than 20,000 bbl.

" announces the following update"

Notice the difference from the previous RNS. We'll find out in a few minutes what the market makes of this - probably "Not Please"

Not be able to buy a more shares for the last 20 minutes on Hargreaves. Put in an order for anything from 10,000 to 50,000 shares - no quote given. Got a quote for 1000 shares only.

“Expects to provide an update to the market prior to the 30th April”

Well they haven’t done this, either:

1) negotiations haven’t gone as planned and have failed to agree the extension / waiver.

2) they’ve made progress on the FO and are holding off a day or so until they are ready to make an announcement on the FO.

3) or ???

Found this on Street Insider posted 14th April

Canaccord Genuity analyst Charlie Sharp raised the price target on i3 Energy plc (I3E:LN) to GBP0.12 (from GBP0.06) while maintaining a Spec. Buy rating.

1st rating i've seen from Canaccord in a while - previously they were in the 70p range.

Wouldn’t want to be out of this over the weekend......Brent said whilst quaffing a bottle of Merlot.

Just finished watching the 2nd season of The Office whilst downing a few glasses of homebrew.

Would want to be out of this over the weekend...

I think Graham does care - had I3E’s story played out - he would have made a lot of money - he may still do.

I think there usually is a message in how they “announce” the results.

In the A2 results - they did not include the word “pleased” in the opening sentence which was inconsistent with the other RNS’s with a positive news.

That being said - they have made several mistakes on RNS’s resulting in having to re-issue them.

With the latest one - they’ve missed a deadline so the logical assumption is that the next RNS will be somewhat more positive. If it’s not - I’ll never Question Fastfood again.

If A2 was the last one ie 13/23c-11 then they weren’t “pleased” - they just “announced” the preliminary results - that was what was so striking about the RNS.

I know that Oil Man Jim gets a lot of flack on this board - but I do recall that whilst everyone else was trying to figure out what the results meant - he called it a “dud” immediately.

Strange wording on the RNS - “Pleased to announce” - given the it relates to a missed deadline.

You would assume that the next RNS is a waiver of the RBL deadline as a Minimum.

The rumblings in the background that everyone was talking about must be due to the curry that Harel ate the other night.

NewKOTB,

Thanks KOTB - not sure how I missed the information in the Company results .

I see over a billion pounds on the balance sheet in commissioning provisions - also some information on tax rebates. Not sure whether the provisions factor in the expected rebates. I don’t have enough expertise to evaluate how this will impact the income / earnings overtime.

I guess this is a good part of the reason the SP is sitting where it is despite the healthy cash balance.

I have a small holding in RRE and a rather larger holding in I3E - wish it was the other way round.

One thing that has puzzled me is the large cash position and relatively low sp. I’ve tried to rationalize this apparent disconnect. Somebody touch on it the other day but I’ve not been able to find further details i.e. we inherited a lot of cash when RRE bought Marathon Assets which were to cover future decommissioning costs.

These costs have not suddenly disappeared - can anyone point me to any information on decommissioning liabilities.

Thanks in advance.

Oiler87,

Brent down 20% but on the bright side WTI up nearly 100%. To. -$1.5.

What is your well placed source telling us about the Repsol FO this week?

Dim26,

I think you have missed the Jist of the argument - Toscana shareholders do have a choice and if they do elect to reject the offer - does I3E have the financial strength to follow a legal process to claim the asset. Someone on the Toscana board who appeared to be familiar with the Process stated it could cost CAD 2 - 4 M.

As far as a producing asset is concerned - I3E itself
Put out information stating that the break even cost of an average barrel of oil is in the $22 range. I have seen recent reports that some of the Canadian blends are receiving prices in the single digit range - that was a week ago. The POO is quite fluid at the
Moment and within the last few days as an example , the Price of Kuwait Blend went down $9 overnight to less than $16 / bbl.

Now I have no degree in finance - but an asset with a cost of production of $22 / bbl selling in the single digits - I would imagine that not only would it not be able to raise a lending facility on such a basis but would have to shut down production to avoid an operating loss.

Further food for thought - Toscana’s production was insufficient to service its own debt which was of the same order of magnitude as I3E’s . The Oil Market is arguably in a worse state this week than it was last week - in all , not a very rosy picture.

Harel,

I’m interested in hearing your rationale for stating the probability of a FO before the June deadline. At greater than 50%. There appears to be more negatives than positives at the moment. Not to mention that they’ve been discussing this FO in one form or another for a year and a half. There cannot be too many details left to iron out - aside from the % the farmer gets for his money and whether it’s prudent to spend capital in the current environment.

I think it suites RRE to wait it out - RRE said as much in their recent interview with Malcy.

As far as the Toscana SH vote is concerned - the offer is so low to where current SH were a year ago - I suspect most SH will have effectively written off their investment and might prefer to register a protest vote.