I3 Energy Share Discussion Threads

[duckdown] 03/4/2018 14:34

The 29th round license application took about 5 months from close of applications to awards. A similar timeframe with the 30th round would take us to the 3rd week of April so like Neil mentioned, news is probably imminent.

Should be a very interesting month, and it could be transformational.

[showme01] 03/4/2018 14:29

Can't get any online quotes. Just trying to get a few more.

[begorrah88] 03/4/2018 14:07

LikewiseThanks

[showme01] 03/4/2018 14:02

Brooko Nice find. Just listening. V upbeat!

[brooko19] 03/4/2018 13:54

hxxps://audioboom.com/posts/6770899-seeing-machines-see-i3-energy-i3e-and-w-resources-wres-plus-alan-green-on-pdz-phe-avo

11 mins in

[showme01] 03/4/2018 13:07

With news due soon and ongoing, I have created a proboards forum as a private chat room. To join, please registar at hxxp://i3e.proboards.com

I am not a member on the LSE bb. Please feel free to copy and paste this info there.

[showme01] 03/4/2018 00:15

Mr T. Assets always value out in the end. Lack of liquidity once buying volume starts should true value this quite quickly. There will always be swings but with low liquidity, they should be limited. Time will tell.

[rosedale1] 02/4/2018 21:20

Thanks for your thoughts.new to this ,and looking to top slice ,but don't know at what stage ,if all goes to plan.I have also invested in RBW which is doing well.

[mr. t] 02/4/2018 20:22

Credit Suisse has improved its outlook for the energy sector, and their favourite sub sector is e&p. hTTps://www.cnbc.com/2018/03/26/energy-stocks-look-attractive-for-first-time-in-two-years.htmlImproving market sentiment is positive for i3e.

[mr. t] 02/4/2018 19:09

rosedale, I hope showme's predictions come true. They make sense looking at the implied valuation in I3e's corporate presentation ($279m or £5 per share on round 30 award based on recent ithaca and wytch sales) and the Liberator NPV ($200m or circa £3.50 a share from the competent persons report).However, I wouldn't be surprised if it took longer for the share price to reach those levels.

[showme01] 02/4/2018 18:20

I posted this on twitter

Funding should get this up to £2 a share. Successful 30th round bid where reserves are tripled should double it to £4. First oil should get it £6-8. A multi drill programme of Liberator should get this into double figures in 2019. No better upside share on AIM imo #i3e

[rosedale1] 02/4/2018 17:04

Would love to hear your thoughts were this could go on news

[mr. t] 02/4/2018 14:47

Nice post showme. Brent approaching $70 again will encourage both i3e and the funder to close financing so they can start drilling quick.

[buffythebuffoon] 02/4/2018 10:57

A very well constructed post showme.

Thanks.

Buffy

[hpotter] 02/4/2018 09:14

Worth a re-read of the CPR (extracts below) to get an understanding of the potential upside/downside of Liberator. Back in Autumn 2017 apparently they were in active discussion on getting the 13/23a Block Licence. If successful LP2 could be drilled from the optimal location, but only 2 wells proposed for Phase 1:

• A significant portion of the field extends into Block 13/23a northwest of the phase 1 area. i3 are in active discussion with the OGA to mitigate this risk. Risk of lower net interest in case the licence is not awarded to i3 Energy.

Extension of the Liberator field into the Block 13/24a, Licence P.101, and risk of lower net interest to P.1987 licence holders. Up to 10% of the in place volume extends into the neighbouring licence.


The second development well targets a higher structure (Figure 5-14) and is therefore easier to achieve, although currently constrained by the licence boundary (which may be extended later).
A portion of the Phase 1 area of the Liberator Field extends outside the P.1987 licence boundary, both to the Southeast into the Blake Partners’ exploration acreage on P.101, and into the un-licenced area to the Northwest as indicated in Figure 6-1.
The STOIIP based volumetric split based by licence area is as follows:
• • 68% within the P.1987 Liberator licence
• • 22% within UKCS block 13/23a to the Northwest
• • 10% within the currently held licence to the Southeast

[2prsimo] 02/4/2018 08:15

great post showme

[che7win] 02/4/2018 06:56

Showme, Well summarised.

[showme01] 02/4/2018 06:32

This is one month I don't think I will be forgetting for a long time. We should get 2 pieces of transformational news that will rapidly re rate the market cap of this company. Although some think that the funding has been delayed to see the result of the 30th round bid awards, I don't. A large chunk of the $200m funding package will be used imo to extract the reserves of Liberator quickly with a multi drill campaign. Funding packages of this size take time and I expect news soon. I have had it confirmed that there are multiple other options for funding if for some reason this didn't happen ( RNS 31st Jan).
It makes sense to aggressively drill Liberator. The oil price is high and expected to go higher so there is so much more profit margin at stake than when they bought Liberator and oil was under $50. It is far cheaper per drill to drill several times rather than once. After Ithaca Energy, Neill and Graham's second company failed as did many smaller oil and gas companies with the collapse in oil prices and I guess they have learnt from that so extract the oil and bag the profit while you can. Finally, they have plenty of current capacity to transport the oil with current infrastructure already in place. I still think that a benefactor will be providing the funding. This is an industrial funding partner, not a funding partner only. Repsol have the infrastructure already in place to transport the oil to sales and it is currently under utilised and running at a loss.
Both directors have said at presentations that they have a good working relationship with the Oil and Gas authority. There is a real push at the moment to push up revenue from the North Sea and the increase in oil price has helped this.
Regardless of the 30th round, i3e have identified other smaller reserves in the North Sea that larger companies have not prioritised to drill and extract.
i3e by their own admission are North Sea bottom feeders. They have been successful there multiple times with their previous company. They have built up good relationships with larger oil and gas companies in Aberdeen as well as the oil and gas authority and are well placed to build a very successful mid tier oil and gas company extracting larger companies smaller finds.
It therefore makes sense to use the Liberator field as cash cow to fund other projects and the quicker they get the reserves out of the ground using a multi drill campaign, the quicker they have a cash pile in their bank account to fund further purchases and drill campaigns.
A lack of PR has kept this still very much under the radar. A lack of funding confirmation has kept people on the side lines from investing. Once funding is confirmed, PR will kick in and the story starts to unfold. The BoD are confident in winning their bid in the 30th round. I am too now I understand the process. This block triples i3e reserves. This block has already had commitment to be separately funded with commitment previously announced so the $200m in the 31st Jan might not even be used to fund this. That is why I don't think the 2 are linked even though the $200m funding package could end up being used to drill this block.
This is a combination of my research, my observations, conversations with the BoD and conversations with Glenwick directors who invested nearly all of Glenwick's capital into i3e. Please do your own research on this company, there is plenty out there. Now I have purchased all the shares I can afford here, the hardest point going forward is when to start selling. A nice problem to have.

[cashandcard] 28/3/2018 10:08

showme1,


Agreed. Last year, the 29th round awards were announced in March. Then a small supplementary round was announced in July. I suspect given renewed interest this time round, we'll have to wait for a result into April. No problem by me.



Cash

[showme01] 26/3/2018 13:06

It's a waiting game now cash. I'm not at all concerned that the funding is slightly delayed. The key is getting a good deal for all shareholders and the flexibility to do a multi well drill on Liberator. The bopd figures will be mind blowing if that is the case and with oil at $70 a barrel, the sooner they can extract and sell on, the better imo.

[cashandcard] 26/3/2018 11:04

Very quiet here this morning. Got some more.


Cash

[showme01] 25/3/2018 10:28

Ziblot, it would be a requirement of bidding and they have previously RNS'd a separate funding package if needed for the 30th round bid block.

[ziblot] 24/3/2018 17:41

I'm sure I3 will have stated to the OGA of available funds relative to the 30th licencing round.

[showme01] 24/3/2018 13:39

Duckdown, correct they do and it is one of the back up funding plans if needed. I have a lot of confidence in these guys. Done it before and I'm sure they will do it again.