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IAE needs a catalyst to drive it through the resistance at .75
In the meantime, it drifts.
In GAP on the retrace.
Probably Rocket Red and his cronies selling.
Sellers remorse.
In my book, if it were up 35% then that would be leaving a lot of money on the table.
Up 3.5% lol
Kinda took off
Looks like OGR is the play to keep an eye on in Mexico these days.
Burgers everywhere.
How about posting one of those fancy charts of yours for IAE?
You following Underworld?
Who's the Trading Fool now?
Fraser Mackenzie sheet updated May 25th has a $1.70 price target for IAE
http://www.frasermackenzie.com/newresearch/Metrics.pdf
Trading at less than 1x cash flow now. I am staying long. At least a double from here.
BUY: Ithaca Energy Inc.
IAE-TSXV/LSE-AIM: $0.71
Target: $2.50
Increased Production
· Ithaca announced an increase in gross production rates to 10,000 bd (6,728 bd net to Ithaca) following the commencement of operation of its downhole pump on the Jacky field (67.275% interest). This compares with lower average volumes from Jacky and Beatrice of 4,740 bd (3,294 bd net) in April and 5,390 bd (3,710 bd net) in May, prior to switching on the downhole pump.
· The Company is now finishing up commissioning and maintenance work, with Jacky and Beatrice currently producing a combined total of 11,500 bd (7,850 bd net). Additional drilling, perhaps by year-end, could add to production volumes.
· The cash flow that Ithaca has started generating this month will allow the Company to continue its drilling program in the North Sea with the aim of taking production up to as high as 15,000 bd net to their interest. We are maintaining our BUY recommendation and $2.50 target price.
Warren Verbonac
Would be nice to see some analysts update their coverage. IAE should have revenue of $1.00 per share with these flow rates and the stock is trading at .70. Nuts!
Up 11% in London on the news.
Big volume in London and up another 11%. Should open here around 80 cents then.
Making money in the big casino!
You're on the puter too much man! lol
Yup. OPEC looking for $75 a barrel so we're in good shape with IAE
Good time for a news release eh.
Jacky was projected at 7800 barrels (5226 net IAE)
Soooooooo if its flowing at 13000 barrels (8710 net IAE)
Production would be
8710+2000=10710 vs 5226+2000=7226
10710/7226=1.48
So they should increase their target to
$1.45(1.48)=$2.15
Weeeeeeeeeeee!!!!!!!!!!
I guess its tomorrow before the open for news.
Nope. 2008 results came out March 26th and this letter came out after that.
I like burgers but not that kind. lol
Research Capital - $1.45 target
OIL & GAS
TARGET PRICE: C$1.45; PROJECTED RETURN: 164%
JACKY EXPECTED TO BE ON STREAM BY MONTH END
EVENT – YEAR-END RESULTS AND RESERVE UPDATE
Ithaca announced year-end financial results and updated oi l and gas
reserves. The company exited 2009 with cash of US$39.2 mi l l ion ($47.9
mi l l ion). Year-over-year, proven plus probable reserves increased 9.5%
to 28.7 mi l l ion boe.
HIGHLIGHTS
Slight Y/Y increase in reserves: After accounting for the sale of assets
to Dyas and the sale of the Barbara field, estimated reserves increased
by 9.5% to 28.8 mi l l ion barrels. The NVP10 after-tax value was
US$357.7 million ($420.0 mi l l ion).
Year-end cash of US$39.1 mi ll ion: As at December 31, 2008, Ithaca
had US$39.1 million ($47.9 mi l l ion) of cash. Netting out the US$60
mi l l ion ($73.4 mi l l ion) convertible loan from Dyas, we calculate net debt
of US$20.8 mi l l ion ($25.5 mi l l ion). Note that Dyas has an opt ion to
convert the loan for an addit ion 15.15% interest in Ithaca’s portfolio of
assets.
Net production to increase to 7,000 bbl /d: First product ion from the
Jacky field is anticipated to commence on or about the end of March
2009. Combined with current product ion from the Beatrice field, we
expect that Ithaca’s product ion wil l increase to 7,000 bbl /d.
VALUATION – SMALL INCREASE TO RISKED NAV
Our risked net asset value is based upon the estimated proven and
probable reserves adjusted for net working capital or debt, plus risked
potential for near-term exploration drilling. Based upon the updated
reserve report , our risked net asset value increased slightly from
$1.43/fd share to $1.48/ fd share.
RECOMMENDATION – MAINTAINING BUY AND $1.45 TARGET PRICE
Given the weak financial markets, Ithaca plans to fund i ts 2009 and
2010 operations with its existing cash resources, cash f low, and
selective farm-outs. Ithaca’s stock price has appreciated recently with
the price of crude, and after the Jacky field is placed on stream in early
April , net oil production should increase from approximately 2,000 bbl /d
to 7,000 bbl /d. We maintain our BUY recommendation and $1.45 target
price, equivalent to a 1x multiple of our fully-diluted net asset value
estimate.
VALUATION CATALYSTS – FIRST PRODUCTION FROM JACKY, THE
STELLA APPRAISAL WELL, AND OIL PRICES
The near-term catalyst is the initiation of first product ion from the Jacky
field. In September 2009, Ithaca expects to spud the Stella appraisal
well (49.8% W.I .). A recovery in the price of oil could also move the
stock higher.
Tomorrow you can print money on IAE
burger?
Seems like anonymous has an endless supply for sale at .70
It's slow out there (and in here too).
lol
I work 4 hours on Friday. Mid June they switch over to 4-10s for the summer.
If Jacky is flowing 25000 BOPD lol
Thats a joke and thats why I posted it. I think $1.50 is possible by mid summer. Maybe a buck tomorrow if Jacky is flowing 12-13k BOPD.
Even $2.50 wouldn't make me a millionaire. Close though. lol
If it hits $2.50 I'll be rich!
Yup. Fraser Mackenzie has $1.70 a share for IAE as well.