Igas Energy Share Discussion Threads

[haydock] 06/10/2016 09:13

Perhaps you should consider which other company has most licences in the Weald ?

The mkt thinks it's go on fracking.

[moneymunch] 06/10/2016 08:58

Of course we need fracking, home grown energy to power up the new gas fired power stations in the planning.......energy security and potentially billions of £'s revenue for UK Plc......and then we've got the multi-billion barrel high quality oil potential of the Weald Oil Basin in South East England......UKOG, ALBA et al could be set for stardom on confirmed recovery volumes, which look like there going to be massive. Gla holders On and Up!!! ;-)

[baggariddim] 06/10/2016 08:58

Let's get to 18 first?

[gary38] 06/10/2016 08:47

HUR has a great future.

[moneymunch] 06/10/2016 08:21

UK energy security and the likely billions £'s generated is the way forward for this new UK Govt. as an independent UK embarks on a new and exciting chapter in its history. Gla ;-)

IGAS has got to be worth a punt on a yes vote.....i'm in....gla ;-)



6/10/16

UK fracking ruling due to be announced by government today.


The government is due later to reveal whether it backs fracking plans, in a landmark ruling for the UK shale gas industry.

Communities Secretary Sajid Javid is deciding on a planning appeal by firm Cuadrilla to test frack in Lancashire.

His backing would enable shale rock to be fracked horizontally for the first time, in a bid to yield more gas.

But, protesters say it uses techniques that risk the environment because of the chemicals and pressure used.

Lancashire County Council refused permission to extract shale gas at two sites - Roseacre and Preston New Road - last year on grounds of noise and traffic impact, forcing Cuadrilla to appeal.

In response, a Planning Inspectorate report was sent to the Department for Communities and Local Government on 4 July, with Mr Javid being given three months to reach a decision on both sites.

The announcement will come after a planning inquiry earlier this year in Blackpool lasted six weeks, during which Cuadrilla restated its case.

[haydock] 05/10/2016 19:46

Live updates: Misson shale gas decision day
By Ruth Hayhurst on October 5, 2016 • ( 3 Comments )
 

Check here for live updates from the meeting deciding IGas’s application for two shale gas wells at Springs Road, Misson, north Nottinghamshire.
The meeting of the county council’s planning and licensing committee, is at County Hall, starting at 10am.
It is expected to hear from the council’s planning officer, the company and opponents of the application. Key facts on the site and meeting

Announcement
4.24pm
Cllr John Wilkinson, committee chair, tells the meeting
At 1.30pm today a letter was received from a Friends of the Earth solicitor. I have decided to defer this item. this means that our meeting will be adjourned until November 15. On that date our meeting will commence at the point we now leave it.
The reason for this adjournment is to allow members to receive definitive legal advice. A copy of the representation will be circulated. I would advice members that we are still in committee, retain your papers and observe the rules on lobbying.

[wiseacre] 03/10/2016 09:35

Igas – dire interims, bondholders take box seat as covenant breach looms
By Nigel Somerville, the Deputy Sheriff of AIM | Friday 30 September 2016


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Rarely does one find good news in results which are released at the last minute, and in the case of Igas the recent record of fairly prompt reporting suggested that leaving the interims to deadline day would be a bad omen. This morning’s numbers and, more to the point, update on the bond situation reads badly – for all the positive spin applied. The numbers aren’t good, a bond covenant breach is expected in the second half of next month and then there is the question of how long it may be before the cash simply runs out.

To the numbers first, where we see a loss of £25 million, or 8.45p per share. Grim. On the balance sheet we note £27 million of cash and equivalents but net current assets were just £23.6 million – a drop of some £12.5 million over the period and we might also note an increase in non-current borrowings on the balance sheet of £7.6 million since the end of 2015.

The cashflow statement shows a net decrease in cash of £4.2 million, before forex differences brought that down to £1.6 million, but this is all rather flattered by a £6.6 million drop in receivables since the end of 2015 (down from £14.8 million). It is good to see the company making an effort to chase up its receivables but I can’t see that being repeated on quite the same scale during H2. But for that, the cash-burn would have been more like £8.2 million in six months and since year-end the company had a coupon payment on its bonds to meet (call that around £5 million).

Having previously thought that the company was heading for a cash-crunch around April/May next year, today’s numbers suggest that the cashburn has slowed – but with an extra £7.6 million turning up in the long-term borrowings the position looks flattered, as is reflected in the net debt position reported of £83.5 million, up by £19.5 million (32%) since at Sept 2015 (just nine months previously). That’s just over £2 million a month going to money heaven.

But we are also told that cash balances as at 27 Sept of this year, after the payment of interest and amortisation on those bonds, sat at twenty-seven million. So the company has stopped burning cash all of a sudden? Er, no. The balance as at Sept was in dollars, the balance sheet is in pounds sterling.

So in fact (taking £1 = $1.30) cash as at Tuesday of this week was down to £21 million – a drop of about £6 million since period end. And we don’t know the current state of payables/receivables, nor the current net debt position.

Talking of debt problems, we come to those pesky bonds. We are told that the company is expecting to breach a daily liquidity covenant in the second half of October – call that three weeks away. We are also told that the daily liquidity requirement is $25.9 million – so the company had, as at last Tuesday, just $1.7 million or room for manoeuvre. Yikes.

We are further told that the company expects to breach leverage covenants at year-end (now just three months away). The noose is tightening.

The company says it is in active discussions with a number of key bondholders, including the mystery bondholder which acquired a large holding via a Dutch Auction. The party is not named, but we are told that its holding is about 34% - a blocking minority should anything need a bondholder vote….

….such as a capital restructuring, which we are told is the aim of the bondholder talks – with the comment that the aim would be to create a sustainable capital structure. IE the current one is not.

The company says it may look to sell off some assets so as to alleviate its liquidity position – including the potential sale of some bonds held in treasury. Hey-ho, let’s solve a debt problem with more debt! Better still, why not sell off the producing assets so the income is reduced. Igas is caught between a rock and a hard place.

Of course, the company says that discussions have been constructive and indicate that a consensual deal is possible - but not a certainty. The Board believes a consensual solution is in everybody’s best interests – but do the bondholders? Do the bondholders care about the shareholders? Of course they don’t!

Igas is about to go into a bond covenant breach within days. That could see the bondholders calling a default and Igas has no way in which to repay the outstanding debt if that happens, unless it can raise $86 million (plus a bit) by selling assets. I would suggest that this might be quite an ask in the current oil price environment, especially if shareholders think that there might be anything left over for them.

Thus the risk is a debt-for-equity deal in which shareholders are diluted to oblivion (see Gulf Keystone, GKP) or the bondholders help themselves to the assets (see Petroceltic, PCI). Most likely, in my view, will be some kind of hybrid deal involving some D4E, some rescheduling of debt maturity, some fundraising (at a hefty discount, natch) and perhaps some asset sales. Whether the bondholders will accept that is another matter, and whether it will actually be enough to turn around the balance sheet woes of the company will remain to be seen. In the end, we could see a partial deal which only kicks the can down the road for a while before they all have to gather round the table once again at a later date.

My guess is that the board will want a once-and-for-all deal. After all, this is the board which inherited a train-wrecked balance sheet from previous head honcho Andrew “piggy” Austin. They can blame him. A partial deal which fails will leave the current incumbents on the receiving end of the wagging fingers of blame.

The problem is that the secured bonds are due for repayment in 18 months’ time. The longer the bondholders are in talks, the stronger their position gets.

As it is, today’s interims get an audit emphasis of matter regarding the company’s status as a going concern. Not only are we warned that there is a material uncertainty about the company’s ability to continue as a going concern – and that the balance sheet does not show the adjustments that would result if the event of the company being unable to pay its bills.

In six months’ time those secured bonds become a current liability. If the full year results come early then the covenant test (and breach) becomes apparent all the sooner. If the numbers are delayed then the secured bonds will become a current liability when the auditor considers a going concern statement.

In short, it is all bad. The company is haemorrhaging money, racking up ever more debt and the bondholders hold all the cards. With a covenant breach now imminent, the question is more one of how the bondholders see their best chance of getting their pound of flesh. They want their cash and they won’t care about shareholder. If it suits the bondholders, there may be a few crumbs left for shareholders, but I rather fear it really will be crumbs.

As for the assets, my guess is that they are probably pretty good, and about to get better. The bondholders will be delighted…..

Igas remains a slam-dunk sell. The risk is of a zero for shareholders. The best outcome that I can see is being diluted to oblivion at well under the current share price.

- See more at:

[julcester] 03/10/2016 08:12

East Midlands - Gainsborough TroughPEDL273 (SE31c, SE41e) Egdon 15%,IGas 35% and operator) and Total 50%.PEDL305 (SK49, SK59b) Egdon 15%, IGas 35% (operator) and Total 50%.PEDL316 (SK89e, SK88b, SK87c) Egdon 15%, IGas 35% (operator) and Total 50%.

[julcester] 03/10/2016 08:10

IGAS been awarded a 35% stake and operatorship of a new UK onshore interest. See EDR RNS.

[wiseacre] 30/9/2016 08:52

The Group's current forecasts project non-compliance with its daily liquidity covenant in the second half of October 2016 and its leverage covenants which will be measured with reference to the Group's annual audited accounts to be published by the end of April 2017; in view of the forecast liquidity position the Group is reviewing a number of options including requesting a temporary waiver of covenants from its bondholders.

The above suggests the company is effectively bust. The bond holders hold the whip hand and the equity may be worthless.

[haydock] 29/9/2016 11:41

Many thanks ft.
Politico's had enough say 2 years ago with the Lords investigation that recommended they get on with the job.
Hardly a hole drilled in the u>K this year, amazing neglect.
Candles anyone ?

If you want plenty frack flack follow.

[ftangftang] 29/9/2016 11:09

Daily Politics BBC 2 ... 12 noon

Debate on fracking

cheers
ft ft

[affc21] 28/9/2016 11:32

IGas shale gas plans are recommended ahead of Nottingham councillor decisionhTTp://www.proactiveinvestors.co.uk/companies/news/166610The Guardian news would appear to be correct...

[hatey] 28/9/2016 09:14

Good pump and dump though, impaled a few !

Well done twitterman/lee

Cannot beat a bit or a lot of ramping, onto the next one !

[effiert] 28/9/2016 09:02

Ty i will send that to the company and FCA.


wiseacre28 Sep '16 - 09:00 - 756 of 756 0 0
I see the BB morons have returned. Don't they know this company is bust?

[wiseacre] 28/9/2016 09:00

I see the BB morons have returned. Don't they know this company is bust?

[hatey] 27/9/2016 19:55

Strange you bang on about Cnel

I must be the only person on any bulletin board that openly tells people that I will
sell a stock at x price. It's called honesty and it drives you nuts.

Why not go and have a pop at all the pump and dumpers who write it's going to double
this and that then sell for 5%.

Filtered now.

[ileeman] 27/9/2016 19:53

You are a complete tard. I held 2 of those for weeks and day traded CTAG...what is your point haha.

I trade and invest AIM stocks I dont hide that you on the other hand are so devious and nasty it is unreal. You pump and dump stocks like CNEL selling the same day and then you start crying when people hold stocks short term...The pot calling the kettle black.

You are nasty bitter person and cant stand other people making money and start crying when you miss the opportunity, look at igas today...you missed the entry so what is the first thing you do come on the thread and have a dig at people.

Sad.

[hatey] 27/9/2016 19:33

Are you still holding cltv, sty and ctag ?

[effiert] 27/9/2016 18:41

with further article in the Guardian you can be sure there's going to be a queue of people wanting in on the bell.

Big move up coming