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i3 Energy (i3E)

Proselenes
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Re: i3 Energy (i3E)

#260911

Postby Proselenes » October 29th, 2019, 9:23 pm

New video interview following the Serenity Oil Strike

https://www.proactiveinvestors.co.uk/co ... 05864.html

.

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Re: i3 Energy (i3E)

#261780

Postby Proselenes » November 3rd, 2019, 9:00 am

https://contrarianinvestor.net/posts/20 ... ber-2-2019

Early last week I3E had an RNS that it had discovered a decent amount of oil at its Serenity prospect. The previous week, the shares had gone as low as 17p. On the news the share price spiked to 55p on October 29th at the open. Unfortunately its been down hill all the way to the current 37p on fears that the bond funding the current exploration could be called in if the next Liberator well being drilled imminently and results due late November/early December does not come in with the results expected. Because of a problem drill on Liberator in the summer and a delay in mobilising the rig, money has been tighter for I3E than they had hoped.


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Re: i3 Energy (i3E)

#262099

Postby Proselenes » November 4th, 2019, 8:05 pm

Video of the presentation done at Proactive by I3E:

https://www.youtube.com/watch?v=VTNKknals_A

.

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Re: i3 Energy (i3E)

#263885

Postby Proselenes » November 13th, 2019, 8:34 am

I3E have applied for consents to Locate a Mobile Installation and Undertake Drilling Operations for Liberator field earliest start date 12th DEC.

So possible 4th well planned this year.

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Re: i3 Energy (i3E)

#266453

Postby Proselenes » November 23rd, 2019, 3:37 am

I am estimating we will get news this coming week.

This is based on the drilling time of the 1st well, which was similar depth/target.

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Re: i3 Energy (i3E)

#320395

Postby IronPyrites » June 22nd, 2020, 10:33 am

Hi All

So where is I3E now?
We have a current MC 6.6m and share price of 6.1p

To summarise the current position:

I3E is an independent oil and gas company operating in the North Sea.
A core asset is the Liberator oil field in which it has a 100% interest.
They had a successful drilling campaign in 2019

https://www.investegate.co.uk/i3-energy ... 57429967U/

Liberator:
This has confirmed an extensive sand body (200+ feet), an oil water contact (OWC) matching the regional expectation at 5270 ft true vertical depth subsea (TVDSS), and an important residual oil column below the OWC. Collectively these mitigate the risk of oil migration westward to fill the A3 and A4 culminations and the Minos High structure in Liberator West, which the Company estimates to contain up to 400 million barrels (MMbbls) of stock tank oil initially in place (STOIIP).

Serenity:
Confirmation of an OWC at 5270 ft TVDSS supports i3's expectation of a substantial oil volume in Serenity (estimated at 197 MMbbls STOIIP). i3's modelling indicates a potential connection of Serenity to the Tain oil field, for which a field development plan is being prepared by the Tain operator.


Appraisal drilling on these was planned for late summer 2020.

So the crucial question is how do the finances stand?

At the beginning of the 2019 drilling season I3E had raised around £41m through a placing (£19m) at 37p and a loan facility of £22m
Drilling costs and expenses in 2019 were estimated at around £32-34m

Interest on the £22m loan is 8% (and can be paid in shares) and it lasts until 2023 but with the condition that I3E commit to a minimum of £16 million of equity which the Company can contribute through either the issue of new ordinary shares to investors or through the proceeds of a farm-out.

As a farm-out was not imminent this condition was extended from 6th December 2019 to April 30th 2020 – the cost was a further placement (and 15% dilution) worth £5m at 35p per share to the note-holders.

At this point (end of 2019 drilling) cash probably stood at around £7m.

With the Serenity discovery Dolphin who have the drilling contract bought in with a 10% farm-in in block 13/23c for which Dolphin will cover 22% of the costs. This was conditional on I3E having enough funds to fund its portion.

I3E then in March this year did a deal with Toscana (a distressed Canadian oil producer) to buy their debt and assets for £2.4m
Buying Toscana and its oil producing assets at a knock-down price looks like a good deal for I3E. Less so for Toscana as expressed by the more vocal share holders on the Canadian Stockhouse bullboards.
https://stockhouse.com/companies/bullbo ... orp?page=1

It is worth noting that the CEO of Toscana (Ryan Heath) is the brother of Graham Heath the CFO of I3E.
One other point is that I believe Toscana share holders get to vote on the deal with I3E. Many private investors are not happy and threaten to vote no. I’m not sure how this would effect things as Toscana is essentially worth nothing having defaulted on its debts and I3E has bailed them out as part of the deal.

This I calculate probably leaves £3-4m in the I3E kitty.

So the bottom line is that I3E doesn’t have the funds to meet its obligation to the loan note-holders.
Failure to do so is a breach of the agreed contract despite the loan maturing in 2023 and potentially could mean that immediate repayment is demanded.
Understandably I3E is pursuing the option of a further extension.

In these circumstance the loan note-holders have considerable leverage – how will they use this?
Bankrupting I3E is unlikely to be to their advantage. They also own shares as well as warrants in I3E.
Who are they?
One of the largest appears to be an European Investment Manager with assets under management in excess of £1 billion who agreed to subscribe for £12 million of the Loan Notes.
However they will want their pound of flesh which will reduce the value held by other shareholders probably by further dilution which is likely to be greater than before.

So what do I think is the most likely scenario here?

Liberator and Serenity are valuable assets and Dolphin are ready and willing to drill them. September 1st being the earliest date mooted.
Toscana has been bought at a knock-down price and will offer near term production and cash flow.
Forcing a debt repayment is not in the note-holders best interest. I suspect this will result in a placement and significant dilution for shareholders.

I3E will still need to secure a farm-in partner.
It is possible that one is about to step in imminently but this was obviously not the case on 30th April when the note-holders condition expired.
Buying Toscana 3 months ago would seem to indicate that I3E management are at least optimistic as to the likely outcome of a farm-out. Of course others might suggest that they are deluded.

However with the shares at 6p (MC 6.5m) the market appears to be giving a relatively big weighting to the possibility that the company will go under. This is a risk but with the asset potential and possibility of near-time production and cash-flow from Toscana it would not seem in the note-holders interests to push for this. Better for them to extract a greater proportion of i3E.

It looks likely that all will be revealed at the AGM on 30th June.
My opinion is that I3E will pull it off but at the price of further dilution for current shareholders. My guess would be perhaps around 30% dilution (finger in the wind job).

I do have a few shares in I3E bought at 35p so at 6p I am well underwater.
Having reviewed the company's position over the weekend I am tempted to average down.

I would welcome any thoughts or comments on my summary.

Regards
Iron

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Re: i3 Energy (i3E)

#320645

Postby IronPyrites » June 23rd, 2020, 8:34 am

Hi All

Well I wasn’t expecting news that quickly:

https://www.investegate.co.uk/i3-energy ... 00055830L/

https://www.investegate.co.uk/i3-energy ... 01037222Q/

Firstly regarding the loan notes – no further dilution as I feared and an extension until 30th September.
There have however been some significant amendments to the loan notes:

The necessity to start the development of Liberator by a specific date has been removed.
However by 30th September 2020 the following is required.

To secure £15mm financing or farm-out for at least one well on Serenity in 2020 or 2021.
And to execute an acquisition agreement for the production of 2500 boepd and subsequently above 5000 boepd by 30th April 2021

On 31st May 2020 the cash balance was £2.4m slightly under my £3-4m guess.

Secondly the Toscana option has been executed.
This is in effect a reverse takeover and requires I3E shareholder approval (AGM 30th June)
Key points are that in 2019 Toscana produced 1065 boepd, I3E will be listed on TSX and Toscana shareholders will receive I3E shares. A 4% dilution to I3E shareholders

Completion of the ‘plan of arrangement’ will be conditional on a vote in favour of the arrangement resolution by 66 2/3% of Toscana shareholders voting at a general meeting. I believe this is also to be held on 30th June.

This acquisition then opens another door to acquire further Canadian oil producing assets.

I3E has also entered a non-binding letter of intent for a package of light oil and gas assets in Canada.
In 2019, the Proposed Assets produced over 10,000 boepd
Cash flow from the Proposed Assets would benefit from Toscana’s US$89 million in accumulated tax pools. The total consideration to be paid for the assets is just under US$60 million 
The Company intends to move to a legally binding acquisition agreement for the Proposed Assets.

There are a number of events that therefore need to fall into place to see a significant re-rating of I3E
1) I3E and Toscana shareholders need to vote in favour of the reverse takeover.
2) A farm-out partner (or other funding) needs to be secured to drill Serenity – Dolphin is lined up to do the drilling.
3) Funding to buy the proposed assets ($60m US) is needed. But then the other loan note conditions will be met.

Management obviously think this can all be achieved and the building blocks do appear to be in place with an achievable date line.

The shares are suspended in the meantime so all we can do is be patient and trust that management can pull this off.

Regards
Iron

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Re: i3 Energy (i3E)

#322888

Postby IronPyrites » July 1st, 2020, 7:29 am

Hi All

The AGM occurred yesterday and the replies to shareholder questions were posted this morning:

https://i3.energy/investor-relations/shareholder-faqs/

Briefly:
There are interested partners for a farm-out for Serenity and Liberator but covid has made drilling before the winter 'unlikely'.
The funds to buy the Canadian assets ($60m) will be raised by equity or equity and debt with any equity issuance made available to retail shareholders.
Suspension will be until between mid-August and late-September (no doubt after the Toscana vote which is scheduled for around that time).

Regards
Iron

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Re: i3 Energy (i3E)

#330475

Postby IronPyrites » August 3rd, 2020, 8:33 am

Hi All

While we await events it appears that Toscana has been struggling:
(Toscana shareholders have a vote on the I3E deal in September)

Management discussion and analysis was released on 22nd July
https://www.sedar.com/GetFile.do?lang=E ... Id=4764768

Toscana was in default of its financial covenant relating to maintaining an adjusted working capital ratio of 1:00 to 1:00 on its senior credit facility however I3E agreed a waiver.
On top of this I3E has agreed that the interest associated with the senior credit facility and subordinated note shall not accrue or be payable during the period from March 30, 2020 up to and until September 30, 2020.

Despite this cash flow from operations has been significantly impacted by COVID-19 and the resulting commodity price collapse.

They are struggling and there is significant uncertainty surrounding Toscana’s ability to continue as a going concern and to meet their obligations as they come due.

On top of this Toscana’s ability to sell certain assets may be restricted by the current abandonment and reclamation liability management regime in Alberta and Saskatchewan.

They had total liabilities of $57.0 million on June 30, 2020, including $21.9 million of decommissioning obligations and limited funds available to execute its future remediation and abandonment program.

It doesn’t look particularly good for Toscana and I am not quite sure what happens if they default before the deal is completed or how this might affect the ability of I3E to meet the conditions of its loan notes?

Any thoughts or insights on this situation?

Regards
Iron

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Re: i3 Energy (i3E)

#331576

Postby IronPyrites » August 7th, 2020, 2:53 pm

Hi All

Plenty of news just out regarding I3E
Firstly the results for last year ending 31st December 2019:

https://www.investegate.co.uk/i3-energy ... 18234150V/

Listed are the series of events and decisions made over the last 18 months:

    Placing at 35p raising £24.4m
    Loan notes for £433k paid off
    Site survey N Sea licences
    Loan note facility for £22m with closed end fund
    Contract with Dolphin for 94 day multi-well drilling campaign
    Due to start 1st September but I3E didn’t have finance to support their commitment
    Crude oil marketing agreement with BP
    Liberator drilling (disappointing) and Serenity oil discovery (success)
    Funding long-stop date extended to April 2020
    2.8m warrants at 56.85p issued (deferred payments for oil field services)
    March 2020 agreement to acquire Toscana (dependent on September AGM Toscana shareholder vote)
    Loan note agreement extended until 30th Sept with conditions
    - secure £15m of financing
    - or agreed farm-out for minimum of one well on Serenity
    - or acquisition giving 2500 boepd to I3E
    - and 5000 boepd by April 2021
    - associated warrants reset to nominal value of 0.0001/share

In July this year they agreed to purchase Gain Energy in Canada for $80m
https://www.investegate.co.uk/i3-energy ... 00070592S/

Subsequently they have agreed to sell part of Gain to Harvard Resources for $45m
This leaves them with assets costing $35 (Cad) and producing 9000 boepd.

This is to be funded by a placement for £30m at 5p which closes on 9th August so 600m new shares to add to the 110m shares already in circulation.
Retail investors can apply for shares via the primary bid platform https://primarybid.com/

Assuming the warrants will be taken up we could end up with over 710m shares.
At 5p the MC would be around £35m.

So what does this give?

Firstly if the placement is successful the loan note extension requirements are met.
Secondly if Toscana shareholders agree (and some of the private investors are not happy with the deal) I3E will absorb Toscana with its experienced oil production team and further stable production assets (881 boepd in last quarter – NGL $26/bbl) to add to Gain assets of 9000 boepd.
Assuming the warrants will be taken up we could end up with over 710m shares.

At 5p the MC would be around £35m.
With finances and or a farm-out in place discussions with Dolphin could see drilling commence for at least one well on Serenity.
Liberator and Canadian exploration assets are then on top of this.

Lots of caveats but if everything lines up 5p could be a bargain entry price.

As always DYOR

Regards
Iron

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Re: i3 Energy (i3E)

#332323

Postby IronPyrites » August 11th, 2020, 7:59 am

Hi All

I3E have announced a successful placing today:

https://www.investegate.co.uk/i3-energy ... 06307616V/

This raises £29m and commitment for a further £1m by a subscription of 568,496,326 shares and a further 12,650,929 shares via PrimaryBid.
This is conditional on a shareholder vote on 28th August

The funding is to be used for the acquisition of Canadian producing ‘Gain assets’ for $80m Cad.
The deal then involves selling on the Saskatchewan assets to Harvard for CAD$45.

The Gain Assets delivered production of 8,948 boepd in June 2020 and would add 2P reserves of 53.8 MMboe with a before-tax NPV10 of c.US$182 million (excluding Saskatchewan).
This adds diversification to their portfolio with near-term production and FCF.
They plan a future shareholder dividend 20-30% of FCF rising to 40%.
The market suspension will be lifted today for the old shares and the new shares are expected to trade after AGM on 28th August.

Regards
Iron

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Re: i3 Energy (i3E)

#503533

Postby Proselenes » May 29th, 2022, 2:03 am

i3E is becoming a cash machine..........with a monthly dividend.

Gas prices going up is only helping this generate more and more and more cash.



https://www.cbc.ca/news/canada/calgary/ ... -1.6468716

Price of natural gas could climb higher still after cresting multi-year highs

Summer heat waves could also push prices higher by driving up electricity demand

Amanda Stephenson · The Canadian Press · Posted: May 27, 2022 2:35 PM MT | Last Updated: May 28

Natural gas prices could climb even higher, especially if hot weather boosts demand this summer. (Nigel Roddis/Reuters)

The rising price of oil may grab most of the headlines, but another commodity — natural gas — is on an even wilder ride and expected to hit fre................

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Re: i3 Energy (i3E)

#503563

Postby Proselenes » May 29th, 2022, 9:11 am

The new UK "Windfall Tax" is actually a boost for i3 Energy imo.

If the Serenity appraisal comes in good, the it makes "buying" the Serenity area as a viable option to reduce tax paid by companies who have North Sea production and looking to reinvest in the North Sea.......to reduce that tax.

It may make "farming into" or even "buying out totally" the Serenity prospect very interesting for some players.

Even now, it might be attractive for some players in the North Sea to now farm into the Serenity appraisal well before drilling, therefore giving i3E a "free carry" on the drilling costs.

Basically anything spent by current North Sea tax paying companies on Serenity now, or future is all then due for tax rebate.

i3 Energy are in a very good place at the moment with zero current North Sea production but with a lot of potential in Serenity.......

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Re: i3 Energy (i3E)

#503999

Postby Proselenes » May 31st, 2022, 1:27 pm

https://www.energyvoice.com/oilandgas/n ... nity-well/


i3 Energy hands Petrofac contract on ‘company-maker’ Serenity well

Petrofac has been named well engineering operator on the upcoming i3 Energy Serenity appra..........................


.

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Re: i3 Energy (i3E)

#505480

Postby Proselenes » June 7th, 2022, 1:39 am

Strong buying been coming in lately.

Record NOI. 6% dividend yield, paid monthly. Likely special dividend before year end. Oil and gas prices booming, in the case of i3E its the North American gas prices and they are still low compared to EU.

Pretty much a strong buy and undervalued as is, imo, however........there is the Serenity appraisal drill coming in September and that is basically ni the price for free.

I would not be surprised to see the dividend raised again soon in Q3 and the share price around 50p by September.

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Re: i3 Energy (i3E)

#505689

Postby Proselenes » June 8th, 2022, 7:50 am

https://www.investegate.co.uk/i3-energy ... 00110749O/

8 June 2022

July 2022 Dividend Declaration

i3 Energy plc (AIM:I3E) (TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, is pleased to announce the following update.

Monthly Dividend

i3 announces its July 2022 dividend totalling £1.6996 million and confirms the following:

Dividend: 0.1425 pence/share

Ex-Dividend Date: 16 Jun 2022

Record Date: 17 Jun 2022

Payment date: 8 Jul 2022

Payment to shareholders holding their shares on the TSX will be made in Canadian dollars using the exchange rate from the Bank of England at close on the Dividend announcement date, 8 Jun 2022.

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Re: i3 Energy (i3E)

#507287

Postby Proselenes » June 15th, 2022, 12:57 am

WH Ireland upgrade their target price to 60.6p

This was the conclusion of their updated note :

Source : WH Ireland note 14th June 22


.........Conclusion: We believe that i3 Energy™s forward-looking outlook is, by far, the best it has ever been. We believe that the company™s Canadian outlook is underpinned by low-risk drilling. The commodity outlook is robust. We expect the oil & gas sector to be re-rated. We expect i3 Energy to emerge as a premium company amongst its Canadian peers. Our high-conviction expectation is that i3 Energy™s forward-looking value creation will exceed the company™s impressive backward-looking (delivered) value creation. The company is delivering on its promise to grow its dividend, which is now (after the increase announced 11 May 2022) paying out monthly at an annual rate of 1.71p (currently yielding 5.9%; 0.1425p/month x 12 months). The forthcoming appraisal well for the Serenity discovery has scope to add very significant value (see Table 2). Following two increases to our fair value estimate in April, we find ourselves again increasing our fair value estimate for i3 Energy. With commodity prices racing ahead of the assumptions we have used to value i3 Energy, and with an inevitable shift of focus on 2023, we believe that our near-constant refrain on i3 Energy remains pertinent: Expect more cash! .............

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Re: i3 Energy (i3E)

#512040

Postby Proselenes » July 6th, 2022, 7:13 am

https://www.londonstockexchange.com/new ... n/15527499


6 July 2022

i3 Energy plc

("i3" or the "Company")

Aug 2022 Dividend Declaration

i3 Energy plc (AIM:I3E) (TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, is pleased to announce the following update.

Monthly Dividend

i3 announces its monthly dividend totalling £1.6996 million and confirms the following:

Dividend: 0.1425 pence/share

Ex-Dividend Date: 14 Jul 2022

Record Date: 15 Jul 2022

Payment date: 5 Aug 2022

Payment to shareholders holding their shares on the TSX will be made in Canadian dollars using the exchange rate from the Bank of England at close on the Dividend announcement date, 6 Jul 2022.

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Re: i3 Energy (i3E)

#515169

Postby Proselenes » July 18th, 2022, 2:41 am

Exciting times ahead with 2 wells due to spud soon.

#I3E/#EOG spudding Serenity in around 6 to 8 weeks time @i3energy
Appraisal well.

#ECO spudding Gazania-1 in around 6 to 8 weeks time @EcoAtlantic_OG
Big Explo well.

Hopefully both spud early September #oil #oilandgas #OOTT

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Re: i3 Energy (i3E)

#518054

Postby Proselenes » July 29th, 2022, 2:01 am



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