Iofina Share Discussion Threads

[rugrat2] 04/10/2014 12:30

Thanks to all for recent posts on our great news. Interesting post from Leggit - Trustlands Oil Field Services seem to have only one address that I can find. They are in New Town, ND about 70 miles east of the Montana/ND boundary in a loop of Lake Sakakawe, in the south of Mountrail County.

EDIT Long/Lat 47.9749,-102.4511

[battery] 04/10/2014 12:30

3622 acre-feet equates to 77995 bpd

[superg1] 04/10/2014 12:29

I make it a bath tub full just below 77000 bpd.

In the US they use different gallons per barrel measures for water and oil, but in the case of fracking on figures and costs it seems they use the 42 gallon rule.

It makes sense to do that for their internal calculations.

As you now mention it in detail Leggit, I note they mention half the pumps are for hot water.

Obviously such a point is subject to change, but clearly they have the depot planned out in full.

We have no idea how much they can sell, but tbh I'm not the that bothered as I think the outcome here will be a generous lump of cash appearing from a JV partner. Perhaps a 50/50 split like before.

That's what I would prefer as the timing couldn't be better for a cash injection. Chile on the back foot and IOF sitting on a range of sites of higher ppm and bpd than current plants, with 82,000 acres of leased land in OK.

[leggit] 04/10/2014 12:25

One final goodie.

the Application granted included the water depot having 10 filling stations, 5 of which will have a hot water boiler system.

[naphar] 04/10/2014 12:23

What's wrong Neddo? Did you go short?

[neddo] 04/10/2014 12:20

aggggggggggggghhhhhhhhhhhhhhhhhhhhhhhhhhhhh

[bocker01] 04/10/2014 12:17

Yes, in excess of 100,000 barrels per day!

[bobsworth] 04/10/2014 12:14

Leggit - thanks
That's more barrels than we expected!

[naphar] 04/10/2014 12:04

Legitt
Many thanks.

[sleveen] 04/10/2014 12:01

superg1

Thanks for your explanation, interesting times for IOF it would appear.

[leggit] 04/10/2014 11:56

superg re your post 25257

The original application was for 3800 Acre-feet per annum, subsequently amended to 3622 AF. This amount has been awarded in full. Equivalent to 1,180,232,322 gallons per year or 37,468,000 barrels (not oil barrels)

Letters of intent include Trustland Oil Field Services (for 1000 AF) Halliburton (1000-1500 AF) and three Fire Depts; totalling 2300 to 2800 AF.
It was only necessary to have LOI for over 50% of applied for.

A date for objections to be received by will be specified in the public notice but will be over 15 and up to 60 days. If valid objections are received we proceed to a contested case.

As already stated on this BB notice of the grant is served on the parties by first class mail. It may be that although IOF will have received a copy of the grant by email, they may not receive the official copy until too late to rns on Monday am our time. Of course they may have prepared the rns on the email notification and release our time Monday pm.or more likely Tuesday.

[phoenixs] 04/10/2014 11:39

at long last!! have been through hell and back on this one. Suddenly all the boxes are lined up, in a row and ready for lift off, maybe at some time in the not to distant future of having a £££;££ sign in front of the share price

[superg1] 04/10/2014 11:11

For the record (to save all the friends texts), I am absolutely sure the permit has been awarded, and that has nothing to do with the date in the box, it's just the good fortune of having so many good contacts, that quietly put a lot of effort in.

[germanicus] 04/10/2014 10:49

Blimey! What a fantastic result....I'm actually looking forward to a Monday morning for a change! lol

Gla

G ;-)

[captain_kurt] 04/10/2014 10:16

Hoping for some low hanging shares on Monday morning. Well for the first 5 minutes atleast

[superg1] 04/10/2014 09:47

Naph, Ors thanks.

All I did is stick with what the water laws state, and on that front it seemed certain they would get permit. Nothing else mattered, all the noise from nay- sayers was just noise you have to stick with the facts. To deny the permit would have been discrimination against IOF, and contravene US water laws.

Slev

We wait to see if it's a full award of the permit or partial. What does it mean?

Cold water sells for 75 Cents to $1 per barrel. Costs for that were said to be no more than 20 cents per barrel, but way back were estimated at 5 to 7 cents opex pb.

Hot water has been in use for some time as it improves production rates. Hot water costs $5 to $6 pb. Armstrong quote opex of 3 cents per degree of temp rise with a typical increase needed of 70 degrees. So on that front it would mean $2.10 for heating plus the pumping side, so there is a big margin on hot water.

Slick fracking which has just hit the market in the Bakken involves huge volumes of water, and will put demand way beyond any estimate of use previously stated. I have no idea right now if hot water is used in slick fracking.

It's not just about being involved in water, it's the size of the permit compared to the dozens in the Bakken with small permits. Such permits and water supply ability is not reliable or cost effective for the big oil services companies, they need big supplies with suppliers that can deliver what they need.

We now have to wait and see exactly what has been awarded in terms of volume. As I said many months ago, there will be a lot of information available once that 'yes' appears in the right hand box.

Heart

Your initial posts were just BS intent on causing disruption, however good on you for the last post, you didn't have to do that, and could have just disappeared off the radar. I'm all for folks that have the tenacity to stick their head up, and be counted. I just wish some had the balls to appear in person at presentations or the AGM, but for many that is a bridge too far, peering over the sofa is as brave as it gets for them. The vast majority here are very pleasant folk, very much worthy of the effort to say hello to in person.


Going back to basics on potential revenue from a permit, it all depends on whether there is a hot water demand. EG 10% of the permit as hot water would mean $15m to $17m per year revenue, which is near the entire revenue for IOF in previous years. The potential margins are lucrative.

What will IOF if that permit has been awarded?

I know what I would do and we all know what has been on the table in the past.

I would look to secure a lump sum from anyone interested in the water. That would be for 50% or the entire business if the price was right.

Halliburton imo put in a low offer of $15 mill for half of the business, but that was at a time when the Bakken boom was just starting. Going forward Hal and others need to think about supplies for slick fracking and water flooding which is also a potential aspect being mooted. The US army corps engineers control the huge lake Sakakwea in ND, and they have been disrupting water supplies for some time, restricting suppliers to a 10 mile stretch of the Missouri, so the likes of Halliburton are well aware of the importance of securing water supplies and how long and complicated it is to do so.

I suspect IOF will go for a JV or sell the lot, that will mean a sizeable cash injection to potentially reduce any loan notes (I say that for a reason) and have funds to start an aggressive move on iodine.

Tom in that interview did say with passion to invest in IOF, which is something the BOD have never stated like that before. I thought it was an unusual move to say that and to put in the rns about becoming THE iodine world leader. All they need to do that imo is the cash, and it rather looks like that cash is potentially about to arrive.

It's all subject to the details of that water permit, at the moment a date is in a box with no details, sadly we have to wait until next week until they add the full facts.

[angel of the north] 04/10/2014 09:40

10 days ago I was ready to hang myself by the nipples with fish hooks and wire after topping up at 52p and then watching the decline to 40p! I feel a tad happier now and will keep the fish hooks for my new boat?

[jasp2] 04/10/2014 09:36

Does IOF not have sufficient cash itself to build a water depot? Is a JV really required?

[che7win] 04/10/2014 09:20

Im thinking the possibilities with this.

The water grant is worth £10s of millions to us, potentially the current market cap or more. We will definitely need a joint venture if we do keep part of this business as part of our plans.

Say we sell half of it for £15m+.
What would that do for the iodine side....20-30 mobiles out in the field?

What will SQM think of that?

[che7win] 04/10/2014 08:46

Sleveen,
Nothing to see here.🙈

Let's keep this news as tight as possible, give loyalty reward to long term holders. 👍

[captain_kurt] 04/10/2014 08:41

Word is it's for the whole 80k.