I3 Energy Share Discussion Threads

[coscos] 27/6/2018 11:09

'i3e expects to disclose the proposed terms of a commercial arrangement in due course'Investors will soon realise the current £40m market cap is far too cheap in relation to terms being agreed.

[showme01] 27/6/2018 11:09

This will finish blue imo and rise further tomorrow once the updated presentation is put out. Vox podcast later too

[tiler1] 27/6/2018 10:59

Salient Points From Twitter:

Parties expect to enter a legally binding SPA
-A JV project team will accelerate & submit Phase I FDP to OGA for approval
-The parties continue to progress the sourcing of long lead items & other kit & services to meet commitment to earliest possible Liberator first oil

[haideralifool] 27/6/2018 10:10

cash and chopsy, thanks. I'll see whether they're willing to elaborate along those lines tomorrow.

[cashandcard] 27/6/2018 10:01

HAF,


They have already indicated in 31st Jan RNS, what the likely parameters of a deal are going to be. After 30th round award, I cannot see that getting worse, only better.



Cash

[chopsy] 27/6/2018 09:57

HAF we were happy with the outline terms previously mooted, so we can expect these new farmout proposals after 30th success to be better. The market will have to play catch up eventually.

[chopsy] 27/6/2018 09:54

OK I stand corrected.

"2P reserves plus Mid case contingent and prospective resources totalling 80 MMBO"

I would hope, however, that much of this will eventually be 2P, following FFD (L & LE) and appraisal (LW). Also, who is to say that mid case won't turn into best case?

[haideralifool] 27/6/2018 09:54

cash, can the market fully appreciate what is going on here, without knowing the terms on which the farm-out has been done?

[cashandcard] 27/6/2018 09:44

A2584728,


Agreed. Lets look at the wording again;


"The Company has granted a period of exclusivity to a potential farminee in order to conclude contractual negotiations which, upon success, would result in i3 being fully funded for both the Liberator field development and the appraisal of Liberator West"


In January RNS they talked of indicative interest in a $200mln 'multi-well' program including Liberator and possible 30th round award. We now have the 30th round award, so the impediment of the 30th round is far behind us.


The market still has not fully appreciated what is happening here. The pointers are all there in the RNS this year.



Cash

[a2584728] 27/6/2018 09:28

JV very soon imho followed by funding to take us beyond 150p

[cashandcard] 27/6/2018 09:14

tgg,


Agree, they are not in the bag just yet. 2P & 2C would be Liberator and phase 2 East only. A combined 33mln bbls.


Cash

[thegreatgeraldo] 27/6/2018 09:12

chopsy
27 Jun '18 - 08:39 - 2570 of 2577
0 1 0
About 40m shares and 80m barrels, 2P&2C. That's 2 barrels per share.

No & no. 47mmbbls are prospective resource.

[cashandcard] 27/6/2018 09:12

Morning all,


What unexpected (for me) and intriguing news to read this morning. Definitely pre-empting the AGM an shareholder meetings etc. Importantly, seems things are moving along nicely. Whoever the partner is, whether its an industrial party or RRE or another entity, we all just want the process to conclude. Hopefully this can be concluded before end of summer.



Cash

[hpotter] 27/6/2018 09:06

There must be synergies/cost savings if Rockrose develop Tain at the same time as i3E develop Liberator.

[tiler1] 27/6/2018 09:02

Massive stride in the right direction for me. Happy

[ducati2345] 27/6/2018 08:54

Choosy liking your optimism, I think you are way over simplifing the case but even so my calcs of 5 quid a share look nailed on if I use your method.

[begorrah88] 27/6/2018 08:50

The AGM would have been very surreal without an update so they pretty much had to give themselves some space to work in.

I'd say the RNS was more triggered by Rockrose RNS/AGM today.

[caters] 27/6/2018 08:43

I'm not so sure. I think this has been going on a while and it's the AGM tomorrow that's triggered this RNS.

[ducati2345] 27/6/2018 08:41

I've a sneaky feeling that this funding delay was caused by BOD turning down previous offers as they know they have a good thing, and have been renegotiating and now found best solution that gives them more long term benefit hence why it's now a further 90 days to iron out the creases and move forward. I can only think this is really good news in long term

[chopsy] 27/6/2018 08:41

HAF you are probably right, so shall we say we should hear by the end of September at the latest?

[chopsy] 27/6/2018 08:39

About 40m shares and 80m barrels, 2P&2C. That's 2 barrels per share. HUR has about 1 barrel per share, but is probably slightly ahead, and much larger scale. As the appraisal progresses, 2C --> 2P, and proven oil in the ground is worth up to $20 per barrel, so $40 per share, or around £30. By this simplistic calculation i3e could be a 30 bagger in 2-3 years. We may have to give up some of that for the funding, the intention was always to retain at least 67%, so let's call it £20.

[haideralifool] 27/6/2018 08:38

chopsy

the RNS reads as if it was the start of the 90 day period that triggered it.

'is pleased to update the market on the status of its discussions with potential joint venture partners ... The Company has granted a period of exclusivity to a potential farminee in order to conclude contractual negotiations '

I don't know how usual this is:

'Meanwhile, the parties will continue to progress the sourcing of long lead items and other development kit and services in a timely manner to meet their commitment to an earliest possible Liberator first oil date'

says to me that both i3e and the farminee are committing capital. Who pays the bills if the talks don't conclude as planned? Or does the above suggest that they pretty much assume they will come to a positive conclusion?

[chopsy] 27/6/2018 08:30

HP it is unknown at this stage. Previously we thought that the cash flow from liberator would have to go, at least in part, to repaying a multiple of the $200m funding package. Now with the SPA the terms will be eagerly awaited. It might be a lot better for us. Let's hope so. It could compensate a bit for the delay. Whoever goes to the AGM or the pub please try to screw out of them when the 90 days started. I suppose they may have to be tight lipped on that.

[caters] 27/6/2018 08:02

Spot on ... i3e mgt is optimising the amount of equity/licence farmed out.