Ithaca Energy Share Discussion Threads

[bountyhunter] 16/3/2017 18:52

it's pathetic isn't it, can't wait for the next RNS!

[bountyhunter] 16/3/2017 18:37

just noticed via the LSE thread that if the bid has greater than 50% take up (re shares not owned by Delek) by the current deadline then they will extend the offer by a further 10-days!

...of course they left that bit out of the RNS (let's call that OMITTED NEWS!) but have a look at the top of the takeover bid circular posted on the IAE website (first paragraph in red and further down the pdf):

[ziblot] 15/3/2017 13:37

Lets hope these institutions slap them down.

[bountyhunter] 14/3/2017 17:48

Regarding Stella start up last year they said the following in the Financial results published in March 2016:

"-- Near term production forecast to more than double with start-up of the Stella field - long term growth underpinned by the Greater Stella Area satellite portfolio and leveraging the value of the infrastructure

-- Significant commodity price protection - average of 10,000 boepd hedged until mid-2017 at $61/boe, with a mark-to-market value of $127 million at year-end 2015"

"It is anticipated that deleveraging of the business will continue through 2016, with a step change in this profile arising upon the start-up of Stella production."

and

"The combined interest rate of the two bank debt facilities, fully drawn, is LIBOR plus 3.4% prior to Stella coming on-stream, stepping down to LIBOR plus 2.9% after Stella production has been established."

and

In accordance with the Stella Sale and Purchase Agreement ("SPA"), Ithaca receives the right to claim a tax benefit for additional capital allowances on certain capital expenditures incurred by Ithaca and paid for by Petrofac on the Stella project.

The tax benefit of these capital allowances is received by Ithaca as the expenditure is incurred. In recognition of the benefit Ithaca receives from the additional capital allowances a payment is expected to be made to Petrofac 5 years after Stella first oil of a sum calculated at the prevailing tax rate applied to the relevant capital allowances, in accordance with the SPA."

Now the're saying that Stella start-up is a risk! i.e from today's RNS "The Company has near term operational and re-financing execution risks ahead of it, the most immediate of which include: bringing the Stella field into full production in line with expectations;"

...it sounds as if they are priming us for more of the same in the Financial Results due in 9 days time - they must think that we are all clueless!

[jimbobaroony] 14/3/2017 17:04

Can't argue they were good investments. Had a good few successes to counter balance those, so not all bad.

[freddie ferret] 14/3/2017 16:38

Seems like you buy basket cases.
This one is good however, that's why people want to buy it.

[jimbobaroony] 14/3/2017 16:33

oilandgas1, just a small time investor. Made a decent amount on this and just don't need the stress and agro. This is obviously the intention of the RNS this morning. Had my fingers burned on XEL/GKP/PRG in the not so distant past, so caution is my middle name. I'd be holding otherwise. It seems like highway bloody robbery which you'd think they couldn't get away with.

[steve73] 14/3/2017 14:01

The board do own a sizable chunk of the company - or they will when all their options pay out.. See my post from a few weeks ago detailing their holdings.

It stinks..!

[buy curious] 14/3/2017 13:08

The board do NOT own the company.

They are employees of the company and can be replaced at will.

The fund managers own the company.

They will decide what happens here.

I am definitely sitting tight.

Little downside. Lots of potential upside.

Don’t fall for Project FEAR

[oilandgas1] 14/3/2017 12:58

I think jimbobarooney works with / for iae/ delek based on his comments this morning or he really is just a scared / poor investor.

[bountyhunter] 14/3/2017 12:38

yes a continuing case of PROJECT FEAR and FAKE NEWS; I sincerely hope the bid fails but for this to be the case the significant institutional investors who disagree with the bid need to make more noise!

[jimbobaroony] 14/3/2017 12:30

well, I may regret this, but I have chickened out and sold up. Don't fancy battling aginst the board.

[buy curious] 14/3/2017 12:26

Prepare yourselves for Ithaca Managements, PROJECT FEAR.

Shamefull behaviour.

I hope the instis start full rebellion.

[bountyhunter] 14/3/2017 12:21

yes talk about fake news, it seems to be catching on!

[bountyhunter] 14/3/2017 12:21

duplicate removed

[dozey3] 14/3/2017 11:47

I was particularly amused by the double speak of the following:

"Favourable Transaction Timing. The consideration payable for oil and gas company transactions is driven predominantly by calculations of discounted future cash flows, with risk factors applied to development projects dependent on remaining uncertainties. For this reason, the Directors consider entering into the transaction shortly before Stella first hydrocarbons to be highly advantageous for realizing full value without taking exposure to post start-up operational risk."

It is patently obvious that once the rig is installed, hooked up and oil is flowing, and you've had a couple of months to iron out any wrinkles, then the execution risk is minimised. The fluctuation price of oil is/will be a risk always with us.

Time the directors took a good long look at themselves. We are being stitched-up for sure. I hope all holders will wait to see the results before doing anything hasty, and see the reactions of fund-managers like Paul Mumford.

[bountyhunter] 14/3/2017 11:18

yes I agree >66% for the bid to be successful, but also >75% (of shareholders votes at a prearranged shareholders meeting) would be required to delist as in the RNS today:

"If the Offeror acquires sufficient shares under the Offer it could be in a position to force delisting or cancellation of the Company's shares from AIM. Under the AIM Rules, cancellation of a company's shares from trading on AIM is generally conditional upon the consent of not less than 75% of votes cast by its shareholders given in a shareholder meeting."

and >90% to compulsorily purchase remaining shares to avoid paying the remainder a pro rata share of future dividends + all the other extra administration involved

as already said no need to do anything just yet as broker timetables not yet circulated

(imo, no advice intended)