Member Info for tonynorstrom1

3littlebirdies,

Just no pleasing some people - our oil is organic and all some want is rotten tomatoes to throw at Management.

As far as do I know what Companies may be interested in i3e - no, not really - Shubham Garg has addressed this question a few times and mentioned a couple of Companies - the only one I can remember is Cardinal Energy.

One of the issues is that our land base is scattered in multiple area's and Companies tend to like contiguous area's. That said Shubham still thought there would be a couple of Companies interested. Pretty much all our area's are sought after to a greater or lesser extent - even the Central Alberta Acreage which is by far the most developed but also the largest acreage by far and with the most infrastructure - I remember Ryan Heath in his first podcast saying that he had battled with several Companies in his previous role to acquire the Cenovus assets.

I suspect also that the sum of the parts are worth more than the whole - I.e. I could see someone buying i3e for one or two of the areas and spinning off the rest or even i3e doing the same. But to gain top dollar - I think we need higher Oil & Gas Prices and to prove out a couple of our area's more - namely Clearwater & Simonette.

They've done that already Pete - production up organically 24% in 2022 and a minimum 3% this year which could be expanded once the dust settles - and dont forget from zero production less than 3 years ago to a peak of 24,000 boepd at the start of this year - do they deserve any credit for that?

I didn't miss it Pete but thanks for sharing - are you saying that i3e need to get a buy back program in place?

Crunching the numbers i3e has about £32m in cash and £42m in debt as of the end of July i.e. net debt of around £10m (should be around £3m by year end)

If your wondering how much 5,000 bopd might cost - take a look at the following presentation from Prairie Provident:

https://37374b.p3cdn1.secureserver.net/wp-content/uploads/2023/06/PPR-Corporate-Presentation-2023-06-06.pdf

It has about 3,700 boepd - high percentage oil and comes with an enterprise value of £85m and interestingly CAD 800m of tax pools. This is the kind of acquisition i3e needs - Oil and tax pools but I do not see how they could afford it without a significant equity raise which not many have an appetite for.

During the recent podcast - it didn't seem that they were close to inking any deal but i'm still hearing rumours of i3e running their rule over a Company or two. Lets see what happens.

Https://www.youtube.com/watch?v=7IKu4gSZuKY

A very good presentation - a lot of useful stuff on why junior oil companies have succeeded and failed and what to look for in a successful junior. Also some good technical stuff on reservoirs, technology including eor techniques.

Note that as per the Q&A - i3e has fields under waterflood!

Https://oilprice.com/Latest-Energy-News/World-News/Equinors-Earnings-Dive-57-As-Oil-And-Gas-Prices-Slide.html

So it seems only investors here were surprised by the fall in earning and the correlation to Oil & Gas Prices !

Jim - stop hiding behind the Louis10 moniker - its pretty sad.

GGG - but you said it was a simple fix last time I.e. they should aggressively bump up the dividend - what makes you think you are right this time?

vmax - i have to say that i agree with your sentiments entirely. obviously no problem with investors venting their anger for wrong calls / mistakes the company have made but it makes zero sense if you are an investor to perpetuate unsubstantiated negative rumours and thoughts - understandable if you are shorting the stock but absolutely bat**** crazy if you are not.

and there's several people doing it as you note - it does not add balance or understanding as some think but is an echo chamber in some instances for opinions often with very little basis behind them.

Apologies for the CSE maths but imo people are being overly negative and cherry picking some numbers to make their case.

Your asking for growth but ignoring the fact they spent nearly $90m on capex last year and grew production 24% from Q1 2022 (18,391) to Q1 2023 (22,773). You could quite easily argue that this was the mistake last year - they spent too much on growth (Capex) relative to the POO / revenue and consequently were not able to grow cash reserves sufficiently to payoff the loan notes all in cash - and this was in a higher Oil and gas price environment.

I dont think you can look at the revised Capex budget which is effectively a 6 month budget and say they are not spending on growth - you have to look at the growth trajectory over the last couple of years and its quite clear that they have spent heavily on growth and I expect this to continue should Oil prices remain supportive.

i3e's mistake was articulated better on the ADVFN BB imo - i.e. that they led investors to believe that the dividend was sustainable not so much that they made an incorrect call on the POO & Gas which just about everyone got wrong.

I tend to be more in Vernetles court - I think there is a lot to look forward to and I think the market is too pessimistic.

No it doesnt Jolly - what you continue to miss is that revenue is linked to the POO & Gas - prices go down and revenue and spending go down - simple CSE maths - does not mean that there is anything fundamentally wrong the the Company. Capex is adjusted all the time in Oil Companies to match revenue - nothing unique to i3e

If you want something not linked to the price of oil - invest in a Company that make toothpaste or toilet rolls or something.

"...late December 2022.."

Thanks for that Mr Fibbles - appreciated.

Just wondering why you blame the previous CFO - he left in September 2022, the 2023 Capital and dividend program were announced in late December 2023. Many praised Graham for his good communication skills - obviously some mistakes have been made but the blame should be laid at the correct door - not sure given the timing Graham is the right person although that would be very convenient !

Anyway - looking forwards..............

Louis10/Jim,

You can assume what you like Jim - whether I have accounting training or not - 2+2 = 4 correct. What difference does it make. You've come on here asking questions but fellow posters here will see that you've been asked a few questions first and refused to answer any as have on the other BB's you post. I will gladly answer any questions from any genuine poster here which excludes you - I have nothing to hide.

Posters here will see how you have disrupted this BB as you have on the PANR and PRD BB - you're really just a spammer with nothing useful to add.

I dont want to provoke you here and invite you to swamp this BB with lots of useless posts.

I was asked here whether I could back up my claim that you are Oilman Jim -I'll have to admit that I cannot prove it with 100% certainty but I am pretty sure and can provide provide 4 or 5 pointers as to why i'm pretty sure - but I wont do it in order not to clog up this board unless a couple of posters here ask me to - so i'll leave it there.

Still waiting on you to back up your claim on I3E Management. Come back to this board I see - you’re getting no love on PRD or PANR - not many fans on here also.

Are you agreeing with Maestro we don’t have any debt?

"This relinquishment has no impact on Licence P.2358, which commenced its four-year second term on 30th September 2020 and contains the vast majority of the resources and potential reserves in the Company's UK acreage. Licence P.2358 includes the Serenity discovery and the Liberator West and Minos High prospective areas, which will be the focus of plans for appraisal and exploration drilling."

The relinquishment this old RNS refers to is Licence P.1987 which contained the Liberator East discovery. The essence of what you said is correct - i.e. licence P.2358 I think was amended to split into 2 blocks and EOG are only farmed into the one containing Serenity. I was actually wondering about the expiry date of the licence and thought Repsol might be able to pick up Serenity for free on expiry. An FDP fulfils the requirement of licence extension so whatever i3e do with Serenity will be on their terms and they are not running up against a clock.

Its interesting that they have not spoken about Minos High / Liberator West - this block still has potentially significant resources. A complete guess - if they are able to farmout Serenity, they could potentially farmout an interest in this block also and get another cheap drill in Minos High / Liberator West. If not I think they could decide to relinquish the licence in 2024 on expiry.

You missed it Justbe - put the popcorn away and go home - nothing to see here !

Jolly - you called me a paid stooge which is very insulting particularly as I have been on this BB for 2-3 years but i'll get over that comment.

"UK ops being scaled right back in advance of Serenity commercialisation, whatever that it is. I think they will drop the Liberator Minos license in due course. Clearly the strategy is all about Canada now."

I think its all one licence with Serenity from memory. The first step of the strategy is to get an approved FDP - at the moment Serenity is worth zero but with an FDP - reserves are assigned and the regulator agrees there is a potential commercial development -then Serenity becomes worth something and they can sell on the licence or decide to pursue a development.

With i3e's risk averse nature as seen with the appraisal well - they are almost certainly not going to develop themselves with EOG. I think its possible they could decide to develop jointly with Respsol and farmout a further portion to cut down on their development costs.

I think also that Repsol are waiting for i3e to get an approved FDP before making a final Investment decision on Tain - the two projects together is quite an attractive little development