I3 Energy PLC (PK) (ITEEF) News

Some good news on the new Montney well...

WHI update after Serenity result.

#I3E have applied and given consent for 2 Geological Sidetracks on Serenity.......potential 3 in 1 in the success case and could prove up a lot of oil @i3energy
$ITE $ITEEF #oil #oilandgas #OOTT

November dividend news should be soon.

I will go for the next monthly divi being :

Dividend: 0.1425 pence/share
Ex-Dividend Date: 13 Oct 2022
Record Date: 14 Oct 2022
Payment date: 11 Nov 2022

As a reminder :

Year end 2022 we will have........

Production will be circa 24K boepd (currently 21K+)

Monthly dividend of 0.1425p per share

Debt free

Net cash

Generating lots of FCF

Revenues in Dollars.

Assets valued in Dollars.

Many hundreds of drilling locations to keep increasing production, to 30K boepd and to 40K boepd ahead......

Increasing ownership of Clearwater play, the most economic of all North American oil plays.


And - pending drilling results from Serenity - potentially the first resources associated with the North Sea - all current resource estimates have zero attributed to any North Sea asset.

WHI update on #I3E $ITE $ITEEF @i3energy following todays news. Canadian assets valued at over 49p a share......Serenity is currently "free" in the price as is half of Canadian production. Extremely cheap.

I3E is ITE in Canada
ECO is EOG in Canada

https://www.hydracapital.ca/2022/09/23/crosscurrents/

...........but there are two other junior exploration stories that I like given that both are imminently drilling on material oil prospects.

They are i3 Energy (ITE.TO, last at $0.35) and Eco Atlantic Resources (EOG.V, last at $0.49).

ITE is in the North Sea and its Serenity well (currently drilling, 75% ITE working interest) is fairly low-risk as far as exploration wells go. ITE is looking to prove a theory that a thin oil column encountered in a previous nearby well is in fact connected to a thicker oil column up dip. The company’s interpretation makes the drill target look pretty straightforward and, if successful, Serenity would represent a major discovery and growth wedge for the company. ITE even pays around a 5% yield from its existing ~20,000 boepd of North American production, so Serenity is a bit of a free call option.

The other one, EOG, has no production, but it has a lot of exposure to emerging hydrocarbon fairways in offshore West Africa. In the near-term, EOG’s most relevant asset is its Block 2B exploration target in the nearshore of South Africa’s northwest coast. The company is about to spud the Gazania-1 well in order to test its theory that a down dip oil discovery extends substantially up dip, potentially holding some 300 million barrels of oil. EOG has a 50% interest in the well and it’s the kind of well that will attract attention if it hits, maybe even before. On success, I think either stock could see a step change in valuation, so I own them both in moderation. And yes, I still own some Africa Oil (AOI.TO, last at $2.53) as I think it’s just too cheap not to own.

They are drillin!!!!!!!!!!!!!!!!!

Broker note on i3E news

Stena Don rig is underway to drill Serenity for i3Energy.

Here we go.......

Download link to the new Tennyson Securities Broker Note on I3E :

https://wp-i3energy-2021.s3.eu-west-2.amazonaws.com/media/2022/09/220915_i3e-Making-hay.pdf

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https://www.thetimes.co.uk/article/i3-energy-to-drill-at-new-prospect-2tsfpzc9c

I3 Energy to drill at new prospect

Greig Cameron
Tuesday September 13 2022, 12.01am BST, The Times

An oil and gas firm has confirmed it is on course to start drilling at a North Sea prospect this month.

I3 Energy said that if there is a positive result from the Serenity prospect it will then look to start planning for a full field development.

That came as the company announced it had more than trebled its revenue in the first six months of the year from £26.5 million to £101.6 million. It booked a £20.3 million pre-tax profit for the period, compared with a £7.8 million loss a year earlier.

I3 has its headquar.........

I3E presentation video from the 8th September.



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Page 2

WHI comment on the interims Page 1

https://www.investorschronicle.co.uk/news/2022/09/08/looking-for-income-on-the-aim-market/

......The exceptionally good performer among the 13 is i3 Energy (I3E), which combines oil and gas production in Canada with appraisal wells in the UK’s North Sea whose attractions have swelled enormously this year. Thus i3 is in the happy position of generating enough cash both to distribute generously to shareholders – dividends have been paid monthly since March – and to fund its capital spending. Management is committed to distributing 1.05p per share for 2022, though City analysts reckon that amount will be exceeded and the prospective 4.7 per cent yield shown in the table is based on a 1.2p pay-out..........

Interesting news today from EOG. They have got a 1m debt facility lined up "IN CASE OF SIDE TRACK AT SERENITY". Looking for even more oil with this appraisal then.

This is from their RNS this morning.

https://www.londonstockexchange.com/news-article/EOG/loan-facility-secured/15621586


.....Simon Oddie, CEO of Europa, said:

"We are pleased to have secured this source of debt financing from UJO, which is one of our joint venture partners at Wressle. The loan will provide us with additional liquidity and reflects the prudent cash management philosophy that we adopt at Europa when looking at the various development settings that we could face in the near term. One of these scenarios includes a success case side-track that may be drilled in the upcoming Serenity appraisal well. The side-track could prove up further volumes in addition to those proven by the main wellbore and these additional funds will ensure that we have sufficient working capital to progress all of our assets under the potential growth scenarios that we are modelling."

October dividend news :

https://www.londonstockexchange.com/news-article/I3E/october-2022-dividend-declaration/15617477

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https://www.telegraph.co.uk/investing/shares/investors-should-normally-avoid-perfect-stocks-oil-company/

........................In doing so, we maintain our exposure to oil through this giant company as well as via the up-and-coming producer i3 Energy and the oil equipment and services play Hunting, covered here a week ago.............................

London shorting update for August.

The figures are the average amount of stock borrowed from CREST.

ECO a reduction of around 600K shares - current loaned amount now 2.79 million.
(Canada=EOG USOTC=ECAOF)

PANR increase of around 2.2 million shares - current loaned amount now 26.48 million
(USOTC=PTHRF)

I3E a reduction of around 2 million shares - current loaned amount now 3.83 million
(Canada=ITE USOTC=ITEEF)

Serenity to commence operations around 10th September

https://kingfisherbulletin.org/notice-map?noticeId=2625

Gas futures pricing looking very strong now.

WHI update on i3E

Q2 Results are out.

https://www.londonstockexchange.com/news-article/I3E/q2-2022-operational-and-financial-update/15601896

Highlights:

· Strong Q2 2022 average production of approximately 19,502 barrels of oil equivalent per day ("boepd"), representing a 116% increase over Q1 2021 and an 8% increase over Q1 2022, despite delays to drilling caused by expected seasonal wet weather conditions and maintenance shutdowns at third party facilities

· Average field sales estimates exited July above 20,000 boepd with current field estimates of approximately 20,500 boepd.

· Assuming the full implementation of the Company's previously announced Enlarged Capital Budget (as announced on 9 May 2022), full-year 2022 net operating income ("NOI" = revenue minus royalties, opex, transportation and processing) is now forecast to be approximately USD 200(1) million (based on current strip), versus previous guidance of USD 241 million, predominantly due to volatile near-term commodity pricing

· Ongoing multi-well pad development of i3's core Glauconite, Cardium and Clearwater holdings and the strategic delineation of the Company's high-impact Simonette Montney position

· Drilled 7 wells (5 operated and 2 non-operated) with production testing underway

· Completed a 25% working interest farmout of the Serenity discovery to Europa Oil and Gas ("Europa") with Europa funding 46.25% of the cost of the upcoming appraisal well, up to a gross capped well cost of £15 million. Preparations remain on track for a mid-September spud

· Inaugural annual sustainability report published outlining the Company's ESG initiatives and plans to reduce GHG emissions

· Increased minimum annual dividend to be paid in 2022 by 25% to £14.784 million (current monthly distribution of 0.1425 pence/share) on strong operational and financial performance and paid out £5.153 million in H1 2022

· Full year 2022 Enlarged Capital Budget as outlined on 9 May 2022 remains unchanged at USD 97 million, and i3 remains on track to deliver peak 2022 production above 24,000 boepd

I3E presenting in London on the 8th of September.

https://www.proactiveinvestors.co.uk/register/event_details/407

This means we should have an operations update and new presentation released before the event or on the day.

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Ref to the I3E/EOG Serenity well........

Europa Oil and Gas heralds 'transformational' spud of of Serenity well

Europa Oil and Gas's CEO, Simon Oddie, gave Proactive London details of 'exciting times' ahead with the start of drilling at its first offshore North Sea well: Serenity. Spudding of the well is scheduled in September with results expected fairly shortly afterwards, said Oddie. It is one of the company's 'two pistons of growth', he says, alongside the UK onshore well Wressle where there is also big potential for Europa and its partners to boost production.



.

Should be rig news this week.........mobilise to Serenity well location is near.

Strong day.

12 Aug 2022 Video interview with EOG CEO

Europa are delighted to link with I3E and look forward to early September Serenity appraisal spud




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So, lets estimate again the coming RNS

Week commencing Monday 15th August - Operational and Financial Update
Rig mobilisation news and Q2 results.

Week commencing Monday 5th September - October dividend announcement
0.1425p a share again.

Week commencing 12th or 19th September - Serenity Appraisal well spud

Week commencing 26th September - Interims
Half year report and potential Special Dividend news.

Week commencing 10th or 17th October - Serenity appraisal well results due.

Ultimately, for me, the previous good result at Serenity was diminished by poor drilling results at Liberator, and we are where are today, where Serenity is in fact not really included in the I3E share price.

The current price is more than covered by the Canadian assets, production, cash flow and dividends being paid out monthly.

Serenity, imo, is already proven to be commercial on a stand alone basis and what we are looking at ahead is appraisal wells that will confirm, or not, that Serenity is much bigger than currently proven. Success at the coming appraisal well should see a very real step change in the i3E share price, as Serenity goes from the current "no value attributed" to become "of value" in the share price.

Rig update for Serenity appraisal well should be coming in a week or so, mobilised, then spud in early September all being well.

If anyone wants some bedtime reading, this is the July 2020 TRACS report done for i3E on NS/Liberator.

https://cdn-ceo-ca.s3.amazonaws.com/1g8j4d8-NS+SERENITY+REPORT+%28TRACS%29.pdf

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Taken from Baytex August 2022 presentation, look at the Clearwater wells payout at 85$ WTI price........

4 months. With IRR over 500%. And I3E have lots of lovely Clearwater play to drill and develop. Its one of the worlds currently most profitable oil plays, given the extreme low cost of drilling (no casing needed and no fraccing) and good flow rates.

People I beleive really are not wide awake to what I3E has.

Link to presentation : https://www.baytexenergy.com/files/pdf/corporate-handouts/2022/2022-08-1%20August%20Presentation.pdf

https://www.bloomberg.com/news/articles/2022-08-04/saudi-arabia-raises-oil-prices-into-record-territory-for-asia

Saudi Arabia Raises Oil Prices for Asia to Record Levels

Saudi Aramco raises Arab Light grade for Asia to record level
Move comes a day after OPEC+ agreed to a small output increase

BySharon Cho 4 August 2022 at 16:17

Saudi Arabia raised oil prices for buyers in Asia to record levels, a sign the world’s largest exporter sees the region’s market remaining tight.

Despite indications that slowing economies are starting to hit global demand for crude, state producer Saudi Aramco increased its Arab Light grade for next month’s shipments to Asian refineries to $9.80 a barrel above the Middle Eastern benchmark. That’s 50 cents than in August.

Still, traders and refiners had expected a bigger jump of $1.50, according to a Bloomberg survey in late July. That was before data emerged this week showing that Americans are driving less than they did in the summer of 2020, when pandemic travel curbs all but halted movement.

Aramco also increased all US grades, with prices for the region going up by 50 cents a barrel. It was the first change Aramco has made for American customers since May.

For Europe, the company lowered light crude varieties and raised medium and heavy types.

The decision came a d...........

Monthly Dividend news - September 2022 divi


https://www.investegate.co.uk/i3-energy-plc--i3e-/rns/september-2022-dividend-declaration/202208030700076688U/

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: 11 Aug 2022

Record Date: 12 Aug 2022

Payment date: 2 Sep 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, 3 Aug 2022.

Lets have a Serenity recap.

As we stand now.........Serenity is commercial with expected recoverable oil of between 8.5 to 20 million barrels. HOWEVER appraisal drilling might push this up to 100 million recoverable barrels or more. Serenity appraisal well next month is the start of this process of firming up much more recoverable oil..........

EOG have farmed into only Serenity........not into the Minos High or Liberator. After the farm out to EOG, i3 retains a 75% WI in Block 13/23c North (Licence P2358) which has Serenity and a 100% WI in Block 13/23c South (Licence P2358), which contains the Minos High Prospect and Liberator discovery.



......."i3 is delighted to announce this potential farm-out which on completion will facilitate the drilling of an appraisal well on the Serenity oil field later this year,” said Majid Shafiq, i3 chief executive.

“This well will provide critical information which will help us to delineate the size of this potentially very large discovery and move it towards development.”........


Serenity migration video :

https://wp-i3energy-2021.s3.eu-west-2.amazonaws.com/media/2021/12/i3-Serenity-Migration.mp4



Serenity

The Serenity field was discovered by well 13/23c-10, drilled by i3 (100% WI) in late 2019. The well encountered a 20ft thick oil-bearing sand (11ft true vertical thickeness, TVT) unit at the top of the Lower Cretaceous Captain sequence. The reservoir quality was high, with porosities averaging 24.5% and oil samples, recovered by wireline, having an API of 31.5°, suggesting that they are very similar to the oil in the neighbouring Tain and Blake fields. The Serenity reservoir is a pinch-out of the Captain sands against the southern margin of the Halibut Horst, analogous to the Tain and Blake Flank. The sand has 11ft TVT at the 13/23c-10 well and thickens toward the west reaching 115ft TVT in the 13/23a-7z well immediately adjacent to Serenity’s western closure.



The maximum expected oil column in the Serenity field is 1124ft true vertical depth (TVD), from the highest known oil in Tain to the Blake-Liberator-Serenity common oil water contact (OWC). This matches i3’s pre-drill predictions and is supported by well 13/23c-10 pressure measurements.



The Blake, Tain and Serenity fields share a common reservoir and OWC. Their depositional history and reservoir charge have been modelled by i3. The model has been confirmed by the pressure and fluid composition data from the Serenity well.

Hence the re-development of the Blake field, development of the Tain field and appraisal / development of Serenity share common attributes and may be linked, depending on optimal use of infrastructure and commercial agreement between the parties.

The reserves already discovered at Serenity represent the opportunity for a commercially attractive tie-back to the planned development at Tain (operated by RSRUK and subject to development approval) with recoveries of approximately 8.5 to 20 MMbbls. If further appraisal confirms the sand deposition and connectivity model, then oil in place would be circa 197MMbbls and a stand alone full field development would generate recoveries of 100 MMbbls or more. With successful additional appraisal, alternate development options for Serenity could include re-deployment of an existing North Sea FPSO or tie-back to alternate existing infrastructure. Planning and permitting for the well is ongoing with the well Operator appointed.

https://www.thetimes.co.uk/article/north-sea-oil-duo-move-serenely-onwards-with-partnership-deal-qxdz0973g

North Sea oil duo move serenely onwards with partnership deal

Drilling on a North Sea oil and gas project is set to start shortly after a partnership deal was completed.

Europa Oil & Gas is taking a 25 per cent share of the Serenity prospect from i3 Energy. In return, Europa is paying for 46.25 per cent of the cost of the appraisal well, assuming that the cost does not top £15 million. Anything beyond that would be shared, based on the respective stakes held by the companies.

The drilling on Serenity is scheduled to begin next month and should give a greater understanding of the resources available in the area. Oil was discovered there in 2019 and it was estimated that up to 197 million barrels could be in place.

It is thought that.......................

Solid day and good volume in the UK. Q2 results will be out soon.

Should be Q2 results soon, and they should be excellent. Maybe this week or next for release.

Cash flow should be superb, and then we are only a few weeks away from Serenity well spud.

Hoping the results might also see a special dividend to go with the monthly dividend we get........fingers crossed.

News today :

https://www.investegate.co.uk/i3-energy-plc--i3e-/rns/completion-of-serenity-farmout/202208010755254035U/

i3 Energy plc

("i3" or the "Company")

Completion of Serenity Farmout

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, following the fulfilment of all conditions precedent in the Farm-in Agreement ("FIA"), the completion of the farmout of a 25% working interest ("WI") in Block 13/23c North (Licence P2358) which contains the Serenity discovery, to Europa Oil and Gas Limited ("Europa"). Under the terms of the FIA, Europa will fund 46.25% of the cost of the upcoming Serenity appraisal well up to a gross capped well cost of £15 million. Any well costs exceeding £15 million will be funded by the companies in proportion to their respective working interests.

Following this farm-out, i3 retains a 75% WI in Block 13/23c North (Licence P2358) and a 100% WI in Block 13/23c South (Licence P2358), which contains the Minos High Prospect and Liberator discovery.

Majid Shafiq, CEO of i3 Energy plc, commented:

"We are delighted to have successfully completed the farm-out agreement for Serenity and to welcome Europa as our joint venture partner in the discovery. The next significant step is to drill the appraisal well, which is on track for spud in September. The well will help us delineate the size of the field and provide the critical information required to formulate an effective development plan for a potentially very large oil field. We look forward to updating the market on our progress at what is an exciting time for i3's North Sea acreage."

With reference to the Clearwater play.........very much i3E and I have brought this to the attention of the author that I3E (London) / ITE (Canada) is very much involved with the Clearwater play.


https://seekingalpha.com/article/4527383-shale-oil-play-definitely-want-miss-out-no-not-permian

The Unconventional Oil Play You Definitely Don't Want To Miss Out: No, It Is Not Permian

J...

Target price 60 pence.

i3 pays a monthly dividend which is currently 0.1425 pence per share.

Next monthly dividend :

Dividend: 0.1425 pence/share
Ex-Dividend Date: 14 Jul 2022
Record Date: 15 Jul 2022
Payment date: 5 Aug 2022

Partner websites for i3E

https://cardinalenergy.ca are operating the Wapiti wells.
https://rubelliteenergy.com are operating the Clearwater wells.
https://www.broadviewenergy.ca is not a partner but might be at some point.

i3E Twitter : https://twitter.com/search?f=top&q=(%23i3e%20OR%20%24ite)&src=typed_query

April 2022 presentation : https://wp-i3energy-2021.s3.eu-west-2.amazonaws.com/media/2022/04/20220404-i3-Energy-Presentation-vF.pdf

https://www.proactiveinvestors.co.uk/companies/news/975727/europa-oil-gas-inks-transformational-deal-with-i3-energy-plc-on-serenity-project-975727.html

Added board to discuss i3 Energy (ITEEF).
My next play after the fall of 88 Energy (EEENF)