The Lemon Fool

https://www.thetimes.co.uk/article/i3-e ... -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.........

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

https://wp-i3energy-2021.s3.eu-west-2.a ... ng-hay.pdf

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Stena Don is underway to Serenity.......

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.

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.

Interview Video link with the I3E CEO :

https://www.youtube.com/watch?v=HK9uN05Szwk

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Well we had it this week and the saying rings true.

Serenity fail.
Gas price collapse.
WCS oil price collapse.

https://www.gasalberta.com/gas-market/market-prices

https://www.bloomberg.com/news/articles ... -abundance



But the other saying is......things can only get better........fingers crossed.