I apologise in advance for presenting this in such a disorganised manner. I simply haven't got time to write it from scratch so have just done a cut and paste job from my previous comments and added on some extra bits. I'd give myself low marks for structure, style and presentation, but hope the content is useful nevertheless.


I3 Energy (LON:I3E) - is a small Aim listed E&P - mcap 300 million - generating bucketloads of cash from a portfolio of onshore oil and gas fields in Canada. These assets are low risk and have lots of scope for being developed to increase production by a multiple. Operations in the field seem to be well managed and efficient. Also has assets in N sea awaiting appraisal and development. Just announced a farm-out for the Serenity field in the N Sea which will be appraised later this year at little or no cost to i3E. Pays dividends on a monthly basis - was equivalent to 7% at the time of the recent announcement but the SP has risen since then so you can do the math. Stockopedia has classified this as a "momentum trap" ever since the price was 10 or 11p. That looks to me to have been misguided - perhaps because of an anomaly in their classification algorithms? perhaps because the fundamentals of E&P do not fit neatly into the analysis model? That conclusion certainly does not reflect the underlying fundamentals in my opinion. Recent analyst reports calculate a value of 30p/share for the core operation with a potential for an additional 40p depending on the N Sea asset appraisal/development. That was based on oil prices below $80. The recent surge in oil & gas implies a significantly higher value. When I wrote about it a week or two back it was around 19p. Current share price is around 27p. Momentum trap, schmomentum trap I say. 


The above was posted elsewhere on Stockopedia a week or 2 back. 

I3E has issued a very impressive update this week which says inter alia:-

"Current production continues to exceed expectations due to continual outperformance of the Company's low decline production base, which has been further enhanced through strong drilling results via i3's inaugural development drilling program."

"Based on forward strip pricing at 31 March 2022, i3 now forecasts full-year 2022 net operating income ("NOI" = revenue minus royalties, opex,…

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