Member Info for tonynorstrom1

Agreed Stas - last significant news was the Dividend and NOI cut. With slashing the Capex budget and pushing new drilling to late Q3/Q4 and only reinstating a quarterly dividend in October - news was always going to be very thin during the last 3-4 months and as you say - good news is what is required to turn sentiment around.

The Q3 update was very solid but sort of expected based on previous guidance - now we need more of the same if not a couple of upside surprises. We have a very solid base and provided Oil & Gas co-operate - then I see sentiment returning.

I'm not sure any sale / part sale of the Company is imminent - I suspect the latest LTIP RNS was business as usual and addressing any possible outcomes which have always been on the table. I don't think there has been any change in strategy or at least if there has been - i3e has not communicated it yet. I3e have always said that they would be very commercial about opportunities which may include part of full sale of any assets.

Have said all of this - i3e have been pretty good at springing surprises (not all positive) - so expect an RNS 7.00am tomorrow morning announcing a full sale of the Company - just to rubbish my post !

Rehaurer :

https://intel.boereport.com/dashboards/map/well-activity/?redirect_from_boereport=true

The second Pembina well spudded on 9th of November so two well now being drilled. The Leduc Well is now licenced and ready to spud. This well is very close to Tamarack Valley wells - so were in good Company.

Louis10 - everyone knows that you are Oilman Jim and the comments here and particularly on the PRD & PANR BB indicate virtually everyone thinks you are a joke. It even looks like you are beginning to lose a few PAID subscriptions - time to withdraw your premium account me thinks and go 90% off.

WCSBCanuck,

"Yes! Dividends are being paid, when they shouldn't, and most that money is leaving Canada."

I suspected so - your reasoning is nonsensical like many of your posts. If your a foreign investor in MEG Energy for example (Canadian Company) - the dividends leave Canada as they would if your were a foreign Investor in Boeing, Exxon or just about any other Company in the World - why are you applying different Criteria to i3e - absolutely nonsensical.

As far as they "shouldn't be paying dividends" - its been a key Corporate Goal since the inception of the Canadian Business i.e. a dividend payer (Total Return Model). If you don't agree with it, it sounds like you bought into the wrong Company. On what basis are you saying they shouldn't be paying a dividend?

"Well yeah, if you extract value out of Canada, rather than create it, that language is absolutely justified."

Can you kindly explain the difference between "extracting" value out of Canada as opposed to "creating" value - I cannot understand the point / difference and bear in mind:

1) i3e bought assets that no one else in Canada appeared to be interested in and bought them with funds from the UK. Canadian banks were not lending at the time. So the initial finance was all uk money which got the enterprise started and making money.

2) i3e pays Canadian Taxes

3) i3e pays Canadian Salaries, Canadian Vendors and Canadian Service Providers

4) Investors get paid dividends same as any other Investors in Companies world wide - and quite rightly so - who invests money without a potential return and there's no differentiation between Canadian Investors or UK investors - if you own shares then you get a dividend.

5) i3e have been actively trying to boost Canadian Ownership of i3e so far with limited success. What are you suggesting - Shares should be expropriated from foreign Investors and handed to Canadians - sounds a lot like Socialism / Communism and not Colonialism.

I think you are correct 3LittleBirds - almost certainly a mistake but no real excuse for it. On my past projects - Critical Correspondence was circulated to department heads who were required to go through it word by word and then initial it as correct - only once it was initialled by all would it then get sent out. However - having done this, the odd mistake still slipped through from time to time in the rush.

Also looking at the wording - I suspect its an early draft that included potential projects / ideas that were being screened but not yet approved. After the comments from out Scottish friend and looking at the relative locations of Tain / Kyle - there appears to be no synergies - I would not be surprised if this disappears completely.

And before I get comments from the usual suspects about kissing butt and always defending Management - I did fire in an email to i3e about what I consider ( and I assume others do also) - the poor optics of the Incentive plan in the face of Dividend Cuts and abysmal share price performance.

To i3e's credit - they did respond but I have already replied back that the optics are still poor and that certain elements of the plan are not consistent with shareholder alignment imo.

In the link that Canuck posted – one of the quotes by @OilGasTourist:

“Having hundreds of undeveloped locations and spending C$2.23 million in capex in a quarter speaks for the management's strategy.”

There are also comments here on this BB with regards to “value destruction” despite “higher Oil Prices” and also “sitting on cash” and not doing anything with it. These comments demonstrate no appreciation of i3e’s finances imo. To try to add a bit of context perspective:

AECO Gas has averaged CAD 2.58 in 2023 with the lowest average monthly pricing in October at around CAD 2.26. In 2022 the average was CAD 5.10 / GJ. That's a massive collapse especially when you consider that opex remains the same so at 5.10 you are generating lots of free cash flow for dividends, capex etc but at 2.58 you are barely above break even. NGL's are also significantly down on 2022 as is oil hence there are many reasons why i3e is well down from the 2022 highs and not just Management missteps. So, I’m not sure where the comment on massive value destruction comes from – it appears a lot of it is down to a collapse in prices particularly gas and NGL’s

Also, the comment on drawing down CAD 75m (£45m) and then not doing anything with the excess cash. I3e had to settle the loan notes (Circa £27m) at the end of May. There was massive capex spending in 2022 that was not fully funded from Cashflow – i.e., some of the new facility was required to settle outstanding bills from the 2022. They have effectively given you the cash balance as of the end of Q3 2023(£19m approx.) and the cash balance after they settled the loan notes at the end of May was approximately £12m. Bearing in mind that that the new facility requires i3e to hold a minimum cash balance of about £6m – what excess cash are they talking about – they’ve been building the cash balance since the start of the year and strengthening the balance sheet which seem prudent imo.

Https://zerogcos.substack.com/p/expecting-a-company-shake-up

This is an old article that I think Canuck has posted before - the authors are relatively new to substack and whilst the article has some interesting points - its pretty poorly written in general with a number of inaccuracies.

WCSBCanuck is posting as "Denver Hodge Lentil Fund" on twitter and "@LentilEater" on the CEO/CA BB.

He does post some interesting links from time to time that no one else has picked up on but he also posts a lot of under researched nonsense. He is also very anti UK management and not just i3e Management but UK Management in General using language like "Colonist UK BOD".

So worth bearing in mind when you try to put his posts in context - always DYOR !

PDP = Proved Developed Producing

So not the untapped part but the most valuable in terms of SP recognition.

"So, no more Kyle or Banff, what are we supposed to make of this?" It should not have been referenced like this - the Project if indeed it is an approved Project should be announced separately in advance of any vesting terms in an awards RNS.

SlickMongoose - thanks for the response - I'm aware of options and how they work - an additional element is that the awards include a cash portion.

My earlier point was really do they deserve the award based on the dividend cut and the dismal SP performance. They have been issued a bucket load of options previously and not that long ago. The other point is that they dilute existing shareholders as well!

SlickMongoose - can you kindly elaborate as I genuinely not sure where you are coming from.

Dartron

Which term are you referring to ? Sale of the Company is pretty standard but i'm not sure i've seen "selling 75% of the PDP". I stand to be corrected but this seems to be something new.

Question for the BB generally - is it normal / correct to be issuing an RNS on options / awards that refer to vesting conditions / projects that shareholders have no idea about i.e. Kyle / Banff.

Agree - after having a look at the locations of Kyle and Tain - hard to see how they are connected. Thanks to our Scottish friend for pointing that out.

Agree - after having a look at the locations of Kyle and Tain - hard to see how they are connected. Thanks to our Scottish friend for pointing that out.

It should be born in mind that the Chairman and CEO are not on the proxy for re-election - so a message can still be sent by voting on the 3 Directors that are up for -re-election. Shareholders can then decide on how to vote on any future resolutions depending upon the BOD's response to this vote and whether they hear the shareholders.

Also an interesting RNS from i3e this morning on options with vesting conditions that may or may not be related to Serenity / Tain

Putting 2 and 2 together Stas and coming up with 5 - Serica's preliminary plan is to develop the Kyle field via a tie back to the Triton FPSO which they have an interest in. One of the apparent holes in the Tain / Serenity development was the possible non-availability of the Bleo Holm FPSO - perhaps this fills the gap? Would need to check the relative locations of the fields. This suggests that the Tain / Serenity Project if it does go ahead is some way off into the future. I imagine not many people here will be happy about that both timescale and the fact that i3e are still eyeing the project

The other interesting aspect of the RNS is the vesting conditions linked to selling 75% of the PDP - I wonder what that is all about.

Finally with shareholders waiting to hear about the Capital Reduction and hopefully a little nudge to the SP - it's heartening to see that the BOD are laser focused on what really matters i.e. sorting out yet more share options and cash awards for the directors especially after such a poor period for the SP.