I3 Energy Share Discussion Threads

[north sea oiler] 14/1/2019 10:30

I am simply making a comparison. RRE have multiple income streams and no debt. i3e have failed to secure a JV to date and are now looking at the debt route as well. They failed to secure the $25m debt last year and now seem to think they can get $100-130m. They need $41m to carry out the drill project in 2019. Senior debt will only lend against income or future income so you can count senior debt being used this year. The Vox podcast says that of the $41m needed, they hope to get $30m in senior junior debt ( this will be very expensive and use the word 'hope'...again). Where is the other $11m coming from if they fail to get a JV again? Placing is the only route. They are also announcing indicative terms in the next few weeks. Indicative is not concrete deal done. I HOPE for your sakes, they pull this off otherwise RRE might just get this asset for a rock bottom price which they seem to have a habit of doing.

[fardels bear] 14/1/2019 10:17

He's probably bought some RRE and thinks he's being clever ramping it by the back door..

[uk2day] 14/1/2019 10:12

Same club! Same rubbish being spouted!

I3e announce multi well 2019 drill campaign!!! and still NSO is intent on spouting same type of drivel as before rns!!

[fardels bear] 14/1/2019 10:00

I don't think that we should just pretend that every naysayer is the same person.

[uk2day] 14/1/2019 09:57

Not sure who nso aka windjammer/jaknife is aiming his negative rubbish at as no one is listening!

It’s Absolutely hilarious he thinks he can convince us we should sell out after such a positive rns!

[showme01] 14/1/2019 08:13

Onwards and upwards imo.

[duckdown] 14/1/2019 08:10

The reason the market cap is so low is because funding has not yet been secured.

If the BoD manage to do a reasonable deal over the next month or two then you'd think the value of the company would be multiples of what it is now.

Over to Majid & Graham to deliver...

[che7win] 14/1/2019 08:03

This rerate is halfway to fair value, a lot more upside to come.

[caters] 14/1/2019 08:02

You'll have to try much harder than that.i3 is run quite differently now with MS in charge.Will it hold the gains? Possibly not all of the gains but any pull back will be minor.

[north sea oiler] 14/1/2019 07:49

Will i3e hold the 50% gains over the last week on more promises by the board?

Previous statements made on funding:-

Wed, 20th Dec 2017 13:51

RNS Number : 9642Z
i3 Energy PLC
20 December 2017

i3 Energy plc
("i3" or the "Company")

Funding Update

i3 Energy plc, an independent oil and gas company with assets and operations in the UK, is pleased to update the market in relation to its funding progress.

The Company continues advancing multiple initiatives to seek full funding for its Liberator development through prospective equity capital markets, joint venture partnerships and private funding sources, one of which is the proposed $25 million senior secured credit facility. The Company now expects to finalise loan documentation in early 2018 alongside pursuing other financing initiatives which i3 believes would fully fund the Liberator development to first oil. The Company is planning for the full financing of the development to occur in Q1 2018 although there is no certainty definitive agreements will be entered into. i3 will further update the market at such point as sufficient information becomes available.

23 March 2018
i3 Energy plc
("i3" or the "Company")

Funding update

i3 Energy plc, an independent oil and gas company with assets and operations in the UK, is pleased to update the market on its funding progress.

On 31 January 2018, i3 Energy announced that Joint Venture ("JV") discussions were at an advanced stage with multiple industrial partners relating to both i3's 100% owned Liberator Oil Field and its 30th Offshore Licensing Round ("30th Round") application. These discussions remain ongoing and the Company expects to reach a conclusion in due course.
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There can be no certainty that these negotiations and discussions will lead to definitive agreements.

27 June 2018
i3 Energy plc
("i3" or the "Company")

Joint Venture Negotiations


i3 Energy plc, an independent oil and gas company with assets and operations in the UK, is pleased to update the market on the status of its discussions with potential joint venture partners As announced on 23 May 2018, i3 Energy respectively holds and has been awarded a 100% working interest in UK North Sea Blocks 13/23(d) ("Liberator") and 13/23(c) ("Liberator West") containing the entire Liberator trend with associated 2P reserves plus Mid case contingent and prospective resources totalling 80 MMBO. 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.

i3 expects to disclose the proposed terms of a commercial arrangement in due course. During the 90-day exclusivity period, the parties expect to enter a legally binding Sales & Purchase Agreement ("SPA"). Completion of the SPA will be subject to the negotiation of certain joint venture agreements in line with industry practice as well as certain conditions precedent relating to the approval of the final Liberator Phase I FDP by the OGA.

A Joint Venture project team will be formed between i3 and the potential farminee to accelerate and submit the enlarged Phase I FDP to the OGA for approval as soon as possible following signing of the SPA. 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.

Shareholders should note that there is no certainty that the proposed farm-in will successfully conclude. Further announcements will be issued in due course and as appropriate.

18 September 2018

18 September 2018

i3 Energy plc
("i3" or the "Company")

Joint Venture and Operational Update

i3 Energy plc, an independent oil and gas company with assets and operations in the UK, announces the following update regarding the exclusivity period entered into with a potential joint venture partner.

Under the exclusivity agreement announced on 27th June 2018, i3's potential joint venture partner was expected to deliver on key assurances within the 90-day period of exclusivity. Some of these conditions remain outstanding and are not expected to be addressed in advance of exclusivity ending on September 24th. i3 remains ready to enter a legally binding Farmout Agreement with the potential JV partner at such time as these key assurances have been provided.

No deal to funding Liberator has materialised in over 12 months of promises. Let's see if the board can deliver on this latest one. Track record speaks for itself.

[caters] 11/1/2019 17:08

Not with such a good % held by directors and senior management

[uk2day] 11/1/2019 16:41

Che7win

Far too many pluses for i3 to fall from here!, we Fell from over a £1 due to lack of progress so after the latsest rns which simply oozes progress we should be back above £1 very soon imho!

As you say mkt cap rediculous enough for a takeover bid to make sense, hopefully this will not turn out to be the case!

[che7win] 11/1/2019 15:40

Uk2day, Not me, cant understand why we ever fell below 100p in the first place.We are in takeover territory at this price, I do think management expectations are much higher than the markets, the market is still adjusting to the profit to be made from these licences.

[roundup] 11/1/2019 14:10

An excellent interview, lots happening and great prospects for an enormous uplift to the share price.

[maltby2002] 11/1/2019 14:02

I3E trading at a fraction of the value of our North Sea peer group says Majid in the podcast. Loads of short term upside pre drill with debt finance potentially finalised by the end of this month and JV by the end of February. Sounds like a possible 75/25 split between the 2.

[duckdown] 11/1/2019 13:59

Lots to look forward to this year if they can get the funding deal done.

3 wells in the summer, 2 of which are potentially transformational.

[duckdown] 11/1/2019 13:38

Interview on Proactive:

proactiveinvestors.co.uk/mediaFiles/stocktubeDetails/11800/i3-energy-team-discuss-multi-well-drill-campaign-and-development-plans-for-2019-11800.html

[scotty666] 11/1/2019 13:29

I3 on this podcast thing following up on yesterdays operational and funding update;

[a2584728] 11/1/2019 13:28

i would like to see them fund the whole thing themselves, maybe raise the cash or do something with a finance house, would be better and more lucrative than giving lumps away to third parties.

[uk2day] 11/1/2019 13:14

Nice summary craffert!! I Can see these hitting £1+ A lot sooner than many on here think!

[craffert] 11/1/2019 13:01

So they need $41mn for drilling and $90mn capex to first oil...total $131mn

They are pursuing debt of $100mn - $130mn but only 25% allowed for 2019 drilling campaign so $25mn-$32.5mn

So if all goes well on the debt side, the JV Farm Out process only needs to raise $8.5mn-$16mn

That's not a big number to be asking from the JV Farminee (ie) i3e have a very good starting point to minimise field or equity dilution. They also have more cards to play with due to the prospects being stronger.

i3e have learned from the mistakes of 2018. They haven't put all their eggs in one basket and granted anyone exclusivity. They have a suite of options to choose from which will keep all the parties honest and drive the best outcome for shareholders.

Really pleased with this

For me the key "press go" is actually the debt funding as the quantum they expect to land will have a domino effect on everyone else.

Land the debt and this project will absolutely happen.

I thought i3e could reach £5-£10 a share based on Liberator alone last summer. I thought NC made a mess of the farm in and we would be snookered as a result. I now believe that Majid and Neil are rapidly bringing i3e back to the investment case it always was. These guys reckon they can PRODUCE 200mn barrels of oil from what they have, at a cost of $30 a barrel....at today's oil prices that's £4.2bn of pre tax cashflow. OK they got to pay the funder back and HMRC, but this is still an awful lot of cash versus £25mn market cap. The Investment case is compelling when the senior and junior debt package terms are confirmed.

[caters] 11/1/2019 12:20

Delayed buys appearing as sells. Tricky to navigate but chart shows steady buying. This will continue trending up til spud.