I3 Energy Share Discussion Threads

[tournesol] 07/2/2022 12:52

hi KingIf assets in the ground cannot be extracted profitably then they are not reserves. The definition of reserves includes economic viability within a defined (and imminent) timeframe. If you've got reserves that you can't produce yourself you can sell them

[king suarez] 07/2/2022 12:23

Yes, highly likely that net resources can be increased in time with further production/appraisal wells also to give greater confidence of total reserves..

[moonshot3] 07/2/2022 12:18

Net resource (WHI) = 137.5mm boe2022 production = 21,060 boepd2022 Annual = 7.4m (21k x 350 days)Reserve life = 18 yearsIf correct, this looks like we have many years of stable production from our Canadian assets to come.

[highly geared] 07/2/2022 11:49

The broker fair value targets, accompanied by the ability to substantially increase production from the long life Canadian assets + the North Sea assets mean a potential several fold increase in value over the next 12 months..

[gusto01] 07/2/2022 11:46

Excellent volume today.Finally people are realising we are still soooo cheap.

[mattybuoy] 07/2/2022 11:42

Anyone else noticed that AECO is trading above Henry Hub? That virtually never happens. Excellent news for I3 of course :)

hxxps://oilprice.com/oil-price-charts/

[divmad] 07/2/2022 10:30

I suggest you all listen to Eric Nuttall's 2022 Outlook, posted by Older andWiser on the other board. He explains simply the concept of value for an oil and gas company, by looking at reserves and cash flow and how long it will take to take a company private from cash flow, with a reserve life remaining, to exploit. I3e is one of the cheapest stocks in his universe of Canadian O&G shares on that basis.

[king suarez] 07/2/2022 09:40

I half agree with that tournesol, but it is no good having massive reserves if they can not be extracted profitably?!

Thus p/e ratio gives an indication of earnings v market value - combine that with expected field life and you can then take a view on true value i.e if reserve life is 10+ years when p/e ratio is low single digits then you are looking at a great buying opportunity, for example. Conversely, if you have a p/e ratio of 10 with a reserve life <10 years then you are looking at an overvalued stock, unless there is significant exploration upside!

Agree that taking p/e in isolation doesn't tell you enough about an O&G (or mining) stock though.

[tournesol] 07/2/2022 09:36

...it's one of the lowest PE that you can see...

P/E ratio is not a valid metric for an E&P co or for any other resource extraction industry (mining).

Why it's invalid has been explained many many times and I don't have the time to repeat the explanation in detail yet again but here's an abridged version.

P/E is helpful when looking at businesses which are not time limited and where you can assume that earnings/profits can be extrapolated into the future, indefinitely.

The critical factor in valuation of resource co's is how much resource they have - that resource has to be depleted to monetise it. Broadly speaking, if they double the rate at which it is extracted, they might double their cashflow and profits (and hence their P/E) but will halve the life of the asset, so will enjoy a shorter period of cashflow. Doubling production from a finite resource does not double the value of the asset.

P/E just doesn't tell you anything about E&P

[1choip] 07/2/2022 09:02

no doubt it's one of the lowest PE that you can see around for a profitable oil/gas producer.

[goodday1] 07/2/2022 08:54

The traders have been locked out.I don't think the MM doing it.The i3e run away re-rate causing it.It is all about fundamentals.Gl all

[tournesol] 07/2/2022 08:45

20p seems very achievable in the next day or 2.

[flyer61] 07/2/2022 08:31

18.9 to buy 1000 or 50000....

[markstevenkirby80] 07/2/2022 08:26

It's just called momentum and this has got it in bundles now

[goodday1] 07/2/2022 08:03

Onwards and upwards.Is it going to be a Goodday or a Goodweek?Gl all

[1choip] 06/2/2022 21:28

hxxps://www.whitetundra.ca/intelligence-suite

interesting to see Kelt Exploration valued at 1B dollars and Topaz Energy valued at 2.66B dollars

[goodday1] 06/2/2022 20:15

#I3E Daily+Weekly charts???Massive volume coming into the stock over the last week with price smashing through resistance at 17p. Price will no doubt be?moving up again this week with next major resistance around the 21p area.hTTps://twitter.com/stocksniper28/status/1490338986786803718?s=21

[haideralifool] 06/2/2022 16:07

Hi T

I think you timed this one much better.

I've been here since 2018. I do have buys over £1. (ouch). Average price now 24p. Don't regret not averaging down more aggressively, around the time this hit 5p, there were other bargains around as well.

[tournesol] 06/2/2022 15:33

Hi HaiderAliLong time no see. Good to know you're here. Tournesol

[haideralifool] 06/2/2022 14:53

Thanks King S

[basem1] 06/2/2022 14:07

Yes I am in THS ATYM and SLP The best of hours of research in the past

[moonshot3] 06/2/2022 14:01

Thank you for your comprehensive reply, KS. Looking for near term cash flow at undervaluation, dare I say it, an I3E rather than Buffalo lookalike (I was burnt on ADV as well). Will PM to avoid clogging up this board.

[king suarez] 06/2/2022 14:01

HaiderAliFool,

Sorry no particular view on EUA - haven't researched it much as I tend to go for producing miners that I can do some analysis on cashflows etc. EUA has a large mkt cap around £600m, but little production right now? Seems they have been in the process of an asset sale for quite some time (that caused the share price to shoot up) - whether they will get anything close to fair value for selling the resources I don't know - that kind of thing is a bit of a gamble if there has been no indicative sales price announced? I know a few posters have made a lot of money (on paper) due to the big rise, but it feels risky at that market cap to me at the moment.

ATYM - similar market cap for example, is doing around c€200m EBITA p/a currently and debt free. That's the sort of fundamentals that easily underpin a £600m market cap to me. You also have other co's in the PGM space, such as JLP, SLP, THS with smaller market caps to EUA but producing significant cash flows?

[muddyfox0151] 06/2/2022 13:56

Fair enough but jackknife caused a lot of financial misery over the years many usernames... whatever

[goodday1] 06/2/2022 13:51

From 3 minutes & 15 seconds.The leafs still saying 28/30p.The 9s wishes must be just a pipe dream, hard luck.Maybe to research a share is a good start Mr BB plonker otherwise you miss the golden i3e nugget. hTTps://www.youtube.com/watch?v=kEeSybr8NKUGl all