I3 Energy Share Discussion Threads

[showme01] 31/5/2018 16:18

tgg, all good points and I am not in a position to put up a counter point forward but the chap I know works in this sector and believes they will prove 80m with just one exploration drill. Time will tell but he thinks they will be very confident with previous Dana 3d and the one's they did last year.

[thegreatgeraldo] 31/5/2018 16:14

Can't see them getting 30-40,000bopd from Liberator & the appraisal area. 33mmbbls of reserves (assuming the contingent are proved up) won't support production of 11-15mmbbls pa of production. Of course, if the explo acreage is drilled & comes in, that's a different matter & we might find out about one of the "stand-alone solutions" they've mentioned. Then, of course, if you're looking at bringing in an FPSO, availability becomes an issue.....

[craffert] 31/5/2018 16:11

thanks showme01. nice to be on a board where folk are knowledgeable, are close to the people making this happen, and happy to share insights. £7 would be sub £250mn market cap so not unrealistic given the scale of daily productivity of Liberator and short time from now to bring it on line

[begorrah88] 31/5/2018 16:07

Great post showme, as ever thanks for sharing

[caters] 31/5/2018 16:02

Excellent feed back to the forum from your meeting - I'm very grateful indeed.

I've never sold an I3E share; I was adding yesterday and the day before.

I've been caught out trying to trade on other shares (including Ithaca) so I'm just going to hold onto my shares all the way.

Good luck everyone here - this is going to be mega.

[che7win] 31/5/2018 16:00

Excellent showme, Thanks for sharing.The oil price is storming upwards again today, last thing we would want is a takeover approach at this stage.

[showme01] 31/5/2018 15:57

Craffert, Just coming back to you from my meeting earlier with a fellow investor who has a very good understanding of the oil and gas sector. Basically he is delighted with the 30th round block. He believes that i3e already know that it is a continuation of the asset they own with Liberator, hence the urgency to prove up those reserves, giving 2p of 80m barrels of oil.
Having the Dana geologist on the board of i3e is a big advantage. Basically, he sees no risk once funding is done to first oil as he thinks i3e have underplayed the 70% COS. It is more of a formality to prove it up. This is just his opinion but one I value to try to get to exit values. The only unknown is the funding package but he thinks with a reasonable funding package in place and the new assets proved up, that we should easily see £7 within a few months. All this prior to drilling and it is possible they will convert the exploration well into a drilling well after they have drilled the first 2 Liberator drills after the exploration drill and possibly a forth production well thereafter. Next year i3e could have 4 producing wells of anything between 30,000-40,000 barrels of oil per day. The share price could be mind blowing. I've removed sell limits for now :-)

[scotty666] 31/5/2018 14:25

It was the same yesterday morning but I just sent a FOK in and the order got filled straight away no problem.
Good Luck

[fardels bear] 31/5/2018 14:24

And yet:

I3 Energy plc (I3E)
Ord GBP0.0001
Sell 20000 shares at 108.0286p

No problem.. I'm not going to, of course.

[fardels bear] 31/5/2018 14:22

He's right, you know..

[someuwin] 31/5/2018 14:13

Can currently buy £2k online. But not £3k.

[cashandcard] 31/5/2018 14:00

ducati2345,


That's true, got an excellent asset for very little. However, they must not get complacent and close a deal soon on funding for various reasons. The most important one being the cost of drilling, supply & services are still cheap, but that window of opportunity will come to an end. Also, they need to get the main asset into production to not only demonstrate the reservoir but get cashflows going that are ploughed back into new exploration/appraisal.


Cash

[ducati2345] 31/5/2018 12:47

There is one guaranteed thing with this BOD they are not in a hurry they are looking at long term. They could have simply made a small fortune on liberator prior to 30 license but they delayed all that for 30 license, they will do same waiting again if it means better long term outcome.they are ahead of game on oil price so have a lot of fat on the bone to play with

[cashandcard] 31/5/2018 11:16

tgg,


Some good points. Its possible to design an exploration/appraisal well to be completed as a producer, if the well is successful. This is what Hurricane did a couple of years ago and others have done also.


Cash

[showme01] 31/5/2018 11:07

Oh, well I'm sure NC and GH have it all in hand! Oil prices have since increased and the BoD might be trying to strike a better deal. Plus they have more than one offer on the table so maybe a bit of further negotiating before signing on the dotted.
Graham has raised an awful lot of money in the past so it is all in very good hands :-)

[thegreatgeraldo] 31/5/2018 10:53

Must be a bit tricky from a logistics POV - ideally if you're drilling an app well into phase 2 east, you'd want to consider the result before sticking another (production) well into the structure. You'd also, maybe, design the app well as a production well. Beyond my pay grade!

[chopsy] 31/5/2018 10:50

Yes, go for 75% WI (rather than 67%). There may be other lenders interested now to increase the competition.

[cashandcard] 31/5/2018 10:44

Showme01,


It sure does, if they are able to get both production wells and (perhaps) an exploration/appraisal well drilled under one rig contract, that will be much better use of capital than doing it in 2 or 3 operational phases spread over a couple of years. Its the potential for scaling up production and efficiency achieved in one that will pay dividends for shareholders and the Lender/s. I also think now that we have 13/23c, a better deal in terms of equity-split and covenants maybe achieved.


Cash

[showme01] 31/5/2018 10:27

Craffert. I know and the market has not caught on yet! Sure, quite happy to post a summary so long as it is not taken as advice, just opinions :-)

[craffert] 31/5/2018 10:22

Would obviously be interested in your analysis and conclusions after you meet showme01. I believe the main men in i3e are as good as you could get in the oil industry, and the technical folk under them are the core of the old Dana Liberator discovery drill team

[showme01] 31/5/2018 10:13

Cash, it probably makes more sense economically too. They can do the initial drill on the new licence and then start back to back drilling on Liberator. Another big carrot to dangle is that the JV funder gets up to 33% of both assets, the second being potentially a lot larger and therefore more attractive due to the upside.
I've got a lunch meeting this afternoon with the investor that initially got me involved with GWIK. We are both quite heavily invested in i3e and we initially met the CEO of GWIK 2 years ago pretty much to the day.
It's been a rollercoaster since then. The initial asset Glenwick wanted to buy got turned down by AIM, then it got suspended and had 6 months to make an investment otherwise it would be struck off. They invested in early stages i3e and what a turnaround of fortune since then. This guy I am meeting understands the oil markets very well and we are going to chat over potential this now has.
The last thing I want to do is start top slicing far too early :-))

[cashandcard] 31/5/2018 09:54

corgies2,


Yes I echo your sentiments. Clearly, there was no impediment to agreeing a deal on Liberator sole as I3E own it outright. I read it as an 'impediment' to agreeing the comprehensive Liberator & Greater Liberator funding deal as indicated in 31st Jan RNS. They pursued that aggressively and now its cleared up, a deal should be forthcoming. I agree, I think the terms will be better for I3E compared to a deal for Liberator only and this is another reason why they 'aggressively' pursued 13/23c. Money always talks.


Cash

[haideralifool] 31/5/2018 09:34

Thanks everyone. HPotter - that detail is really useful.

[ducati2345] 31/5/2018 09:29

I had strong follow through when they dropped to 90p

[hpotter] 31/5/2018 09:27

Haider, only 8 Bids in the 30th Round included a commitment to drill a well. Most were just reinterpretation of seismic, or shooting some new seismic. Its aggressive to make a drilling commitment and it has put i3E in a league with the Shell's and BP's of the world.