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IBR – Oil and Gas company goes Cryptocurrency Mining

Discussion in 'Canadian Stocks Message Boards' started by Dan Thunderbolt, Jan 23, 2018.

  1. Dan Thunderbolt

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    IBR – Oil and Gas company goes Cryptocurrency Mining
    Iron Bridge Resources Inc. – TSX Exchange – T.IBR

    Cryptocurrency Mining Operation Launched by Oil and Gas Producer Iron Bridge Resources
    January 22, 2018
     
  2. Dan Thunderbolt

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  3. Dan Thunderbolt

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    The oil and gas business should improve in the coming months.

    "ICT’s pilot cryptocurrency mining project will involve a very modest initial capex investment as a result of its ability to leverage existing infrastructure and excess power generation from IBR’s Elmworth hydrocarbon processing battery, fired by IBR’s clean burning natural gas production, to provide power to the mining control center. The pilot project currently has access to approximately 700 kW of very low cost power with the ability to expand that power generation capability rapidly. ICT’s parent company, Iron Bridge Resources, currently produces enough natural gas to power a 45 MW facility and expects to significantly increase that gas production within the next two months when it brings on-stream additional Montney production. ICT is also in discussions with other natural gas producers to work with them on future commercial projects. As a result, ICT is interested in pursuing industrial scale hosting opportunities."
     
  4. Dan Thunderbolt

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    Excerpt News Release December 20, 2017

    Share Re-Purchase Program Update
    In November, the Company began to re-purchase shares of its common stock under the normal course issuer bid “(NCIB”). To-date, approximately 880,000 shares have been purchased in the open market pursuant to the NCIB for approximately $585,000 in aggregate (average re-purchase price of $0.66/share). All shares that have been re-purchased will be cancelled and eliminated from the existing outstanding share count.
    The number of future share re-purchases under the NCIB, the timing of purchases, and the price at which the Common Shares will be purchased, will be determined by the Company in its discretion and will depend on future market conditions.
     
  5. Dan Thunderbolt

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    http://business.financialpost.com/t...on-cryptocurrency-but-analysts-drop-the-stock

    Nice article, getting some exposure. I have read a dozen of articles on Kodak and its Kodakcoin. None of them were positive, nevertheless the stock is way up.

    Sometimes it may be good to be the first and Iron Bridge is among them. Some cryptocurrency mining fantasy might help the stock. We will find out once the company releases more news on their plans.

    Anyhow the next few months should also be interesting concerning their core business. The higher oil price helps as well.
     
  6. Dan Thunderbolt

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  7. Dan Thunderbolt

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    'Energy hunters': Bitcoin miners search for cheap, innovative energy sources
    January 28, 2018
    https://boereport.com/2018/01/28/energy-hunters-bitcoin-miners-search-for-cheap-innovative-energy-sources/

    Excerpt
    Oil and gas explorer Iron Bridge Resources Inc., for one, recently announced plans to launch a cryptocurrency mining division that will use excess energy from its oil and gas operations in northern Alberta.
    Chief executive Rob Colcleugh said the company is planing to pilot a roughly 600 kilowatt crypto-mining operation to make use of the high Bitcoin prices and extremely low natural gas prices.
    “The economics at these levels are pretty astounding,” he said.
    Colcleugh said he’d look to create a partnership that could offer power costs “orders of magnitude” less than provincial utility rates.
     
  8. Dan Thunderbolt

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    #1 Stock with the most net insider buying over the past 7 days:

    TSX Stocks with Net Buying
    1. Iron Bridge Resources (T:IBR)

    Net Insider Buy Vol.(000's)
    1,689,500

    Latest Quote
    $0.56
     
  9. Dan Thunderbolt

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    What's fuelling the potential bitcoin mining boom in Canada
    Power companies in Manitoba and Quebec have been inundated with inquiries from mining companies
    By Erin Collins, CBC News Posted: Feb 28, 2018 4:00 AM ET

    http://www.cbc.ca/news/business/bitcoin-mining-electricity-canada-1.4543319

    Excerpt from the article:

    Alberta's energy sector is also watching the rise of bitcoin mining in Canada closely. Inside a storage closet at the headquarters of Iron Bridge Resources in Calgary, a line of bitcoin mining rigs hums away on a table. The small oil and gas company is testing the rigs for use at its oil and gas facility near Grande Prairie. 'Natural fit' CEO Rob Colcleugh plans to use the natural gas that his operation generates as a byproduct of oil extraction to mine for digital currency and maximize potential revenue. "The cryptocurrency business was attractive because it uses quite a lot of electricity and that electricity can be generated off of natural gas," he says. "We do that anyway, so it was a natural fit." Colcleugh plans to power about 170 mining rigs. But his real goal is to provide power to a much larger mining operation transplanted from China, a deal he hopes to finalize soon. China is looking to curb the number of digital currency mines operating in the country because they use so much power, he says, which is why some of those mining firms are looking to expand or relocate to Canada. At least six Chinese companies have contacted Colcleugh about hosting mining operations, he says, as have a few American firms.
    Rewards can be great with cryptocurrency investing — but so can the risks
    He says most oil and gas executives are initially baffled when he explains the concept of hosting bitcoin mines, but he says their attitudes change pretty quickly when they learn about his Grande Prairie project. "I have an awful lot of coffees set up afterwards and they want to know the details and they want to know the math."
     
  10. Dan Thunderbolt

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    Canada-based Energy Company Catches the Bitcoin Bug; Set to Start Bitcoin Mining
    March 10, 2018 14:30

    https://btcmanager.com/canada-based-energy-company-catches-bitcoin-bug-set-start-bitcoin-mining/

    "Unlike other firms that entirely abandoned their niche and joined the blockchain bandwagon, Iron Bridge is not leaving the gas industry. Instead, they will use its yet to be created subsidiary, Iron Bridge Technology, to carry out its bitcoin mining operations.

    GMP FirstEnergy vice-chairman and co-head of energy sales and trading Ted Boehm opined that the company’s move is a smart one because even if mining one bitcoin requires 215-kilowatt hours of electricity, Iron Bridge will still earn approximately $49 per Mcf for its gas."
     
    #10 Dan Thunderbolt, Mar 17, 2018
    Last edited: Mar 17, 2018
  11. Dan Thunderbolt

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    This following part in the article of the previous post is also very intersting.

    "The author thinks some of the people criticizing the move might not understand what cryptocurrency mining entails.

    If Colcleugh and his company can match their abundant energy resources with standard mining equipment, they will surely hit the moon within a relatively short period.

    In a similar move, the Japanese conglomerate GMO, which only started mining cryptocurrencies in December 2017, has generated a whopping $3 million."
     
  12. Dan Thunderbolt

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  13. Dan Thunderbolt

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    Two things to watch out for in the month of April:
    • The two wells are expected to be tied-in and producing in mid-April 2018 through IBR’s 2-23 Facility.
    • Cryptocurrency mining equipment and a fit-for-purpose containerized facility is expected to be powered-up and operational after spring break-up.
     
  14. DaveP648

    DaveP648 New Member

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    Not that I thought of this... but it always seemed like that extra energy could go somewhere. Pretty clever
     
  15. Dan Thunderbolt

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    IBR Corporate Presentation – April 2018
    April 10, 2018
    http://ironbridgeres.com/wp-content/uploads/2018/04/Q2-2018-…

    Excerpts:

    2017 – 2018 Winter Program
    Finished:
    - Drilled two Montney horizontal wells at 2-23 battery, awaiting tie-in to production facilities
    - Drilled two Montney horizontal well at 8-22 and 3-17 for land retention (41 sections) and resource delineation
    - Drilled one water disposal well at 2-23 battery, awaiting injection approval

    Near Term Catalysts:
    - IBR's first two wells results from 75 stage wells (May 2018)
    - Approximately two dozens well results expected this year on Montney lands surrounding Iron Bridge

    IronChain Technologies – Crypto Mining

    Pilot Project at the Gold Creek Battery Site
    - Advancing our pilot project to use the spare generation capacity at our battery sit (500-600kw)
    - Will be housing miners in a modified sea can with venting, power and HVAC capabilities
    - Should be commercial after Spring Vreak-up
    - Near zero cost power cost makes for an exellent economics despite Bitcoin prices falling through Q1 2018
    - Small capital investment (~$500k) expected – any additional capital will be sourced from third parties

    Hosting Opportunities
    - IBR has been inundated with requests to host third party mining equipment and sell them power
    - Consumes significantly more natural gas than we could use with our small mining operation, therefore could have significant impact on netbacks
    - Are currently in discussions with potential partners outside of our Gold Creek battery site
    - Will update as commercial arrangements are advanced
     
  16. Dan Thunderbolt

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  17. Dan Thunderbolt

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    Two well results are expected this month which could move the stock price higher again. Some news concerning the cryptocurrency mining / hosting activities would also be nice. I still think this one has potential.
     
  18. Dan Thunderbolt

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  19. Dan Thunderbolt

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    Price of Oil is going up. If Iron Bridge reports good well results end of May the stock price should move up again.
     
  20. Dan Thunderbolt

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