The level of trust that you have in the management of a company can often play a big part in your willingness to invest.
I had been wondering when further news would come from i3 Energy (I3E) and these week two significant RNSs dropped on the same morning, which ultimately led to shares being suspended for the foreseeable future.
As usual the bulletin boards seem to be flooded with people saying what a great deal I3 Energy (I3E) has just secured, having announced today that it had acquired Toscana Energy Income Corporation (TEIC).
I see I3Energy (I3E) heading towards the top of the daily AIM leader board, with its shares up some 35% at 8.1p when I last checked. Now why would that be? A funding deal or just the power of social media based ramping? I think the later for good reason.
I3 Energy (I3E) was one of the most popular oil shares on AIM last summer and autumn, but the situation is very different now after a number of failures operationally.
These days on the markets there seems to be a willingness by some private investors to just believe any story that is being spun, rather than making any attempt to actually check the facts themselves.
So there we go, I3 Energy (I3E) has confirmed the A2 Well on the Liberator field has likely found oil, but not a fat lot from what I can see. I have been warning about the risks on Liberator drilling and the consequences of not finding oil with the drill bit for some time, most recently HERE. Looks like those risks have crystallised...
I3 Energy (I3E) is a company which I had high hopes for and have continued to keep the faith with despite being far from happy with the way that the board of directors has handled things during the current drilling campaign. Having screwed up the first Liberator pilot well, which was supposed to have determined the location for a first production well next year on its North Sea licence, and then operationally redeemed itself to some extent by striking oil during an appraisal of its nearby Serenity licence area, and proving that to be an extension of the adjacent Tain field, all eyes have been on the second Liberator pilot drill...
I3 Energy (I3E) has certainly had its share of ups and downs during its current drilling campaign, but I can still see the potential for shares in this to come good.
I commented on I3Energy (I3E) after the results of the Liberator LPt-02 well were released back in September. I questioned if the planed drill sequence would be changed with Serenity being drilled prior to the A3 Liberator well – subsequently it was. I questioned what, if any 3rd party certified reserves the company would have at Liberator to back the proposed RBL, and suggested it could be none. I rather think I was largely correct in that view, but the situation is now confirmed far worse in my view. Whatever the rocketing share price indicates...
I have commented on I3Energy (I3E) over the last few days concluding this company is uninvestable and noting the company Nomad seems to agree with me. After market close on Friday the company PR man issued an e-mail update to some shareholders. It confirms my thinking. This company is utterly uninvestable at best.
I3Energy (I3E) has caused Gary Newman and then I to comment. It’s also caused the Nomad and Broker WH Ireland to comment. I called for the company to clarify what the heck was going on and it looks like WH Ireland agrees with me- it seems to have no more idea than I do! How can the company’s nomad and broker decline to put any value on the equity? Perhaps fair equity value is less than the debt? What a farce!
Gary Newman is a fine chap and a fine writer who I am delighted to have as a colleague. But I must take him to task for a tweet he sent last night where he is just plain wrong. The subject is i3 Energy (i3E).
I3Energy (I3E) told us about the disappointing results from its LPt-02 well on Tuesday this week. Gary Newman commented on this and concluded the jury was out on it being a stock to buy or sell or hold. I am rather less positive for a number of reasons. I sold, and remain negative on fundamentals.
Any negative news on an oil drill tends to see the share price getting hammered, and that is exactly what has happened today after I3 Energy (I3E) announced that a pilot well had failed to hit the reservoir that it was targeting.
I3 Energy (I3E) has had a bit of a bumpy ride of late, largely thanks to some untrue rumours which were being spread by certain individuals on social media, but the uncertainty has now been resolved following the latest news from the company...
Smaller North Sea oil and gas companies seem to be out of favour, as investors go chasing big profits in riskier, less proven parts of the world, but more often than not the outcome tends to be heavy losses on these types of outfits.
i3 Energy (13E) floated at 55p earlier this week. Its shares now trade at just 34.5p to sell. Even by the standards of the AIM Casino this has been a god-awful IPO. But it is going to get an awful lot worse.
It was only a couple of months ago, on May 10 - 6 months behind schedule - when wannabee North Sea oil developer i3 Energy (I3E) announced it was to raise up to $50 million as it joined AIM. Since then, as we have noted before, there have been numerous false starts and it was obvious to all concerned - bar Amanda Van Dyke's related party snakefest Glenwick (GWIK) - that the fundraise was in deep merde. Oh yes. Party on bear dudes. This IPO has bombed and the business model is mega-fucked.
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