# Interesting: IBR � Oil and Gas company goes Cryptocurrency Mining



## prex (Aug 27, 2017)

*Interesting: IBR – Oil and Gas company goes Cryptocurrency Mining*

Iron Bridge Resources Inc. – TSX Exchange – T.IBR 

I had this on my watchlist as an oil and gas stock. Surprisingly they are now doing Cryptocurrency Mining. Any thoughts?

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


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## Nerd Investor (Nov 3, 2015)

Hadn't really heard of this one, based on the charts looks like it's been more or less left for dead. The financials aren't pretty, but if you think they can operate at cash flow positive in this environment and survive then it might be worth taking a flyer on. You may get boost from that news eventually. People do get hyped about block chain/crypto, although maybe less so now after the big pullback.


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## prex (Aug 27, 2017)

Thanks Nerd Investor for your feedback. I have meanwhile taken a small position. You never know... Besides the cryptocurrency mining I think they will make progress with their oil and gas business in the coming months. The News Release December 20, 2017 is very interesting in this regards. Below is also an excerpt concerning a share buy back programm from that News Release. The stock is currently trading at $0.66

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.


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## Nerd Investor (Nov 3, 2015)

I might take a very small flyer on it as well if the price is still this low when I sell another position. 
Definitely interesting, thanks for bringing it up!


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## prex (Aug 27, 2017)

The recent insider activity looks encouraging. You can check on the canadianinsider website. 

The company is also mentioned in the following article:
'Energy hunters': Bitcoin miners search for cheap, innovative energy sources
January 28, 2018

Looks like IBR is still under the radar. Maybe that will change when the next hype comes around. Lets wait and see...


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## Nerd Investor (Nov 3, 2015)

I ended taking a small position, so we'll see!


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## prex (Aug 27, 2017)

I bought additional shares at these levels. Below is an interesting excerpt from a recent article. I am confident that the time for IBR will eventually come in the future...

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 Last Updated: Feb 28, 2018 5:10 AM ET

Excerpt:

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."


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## prex (Aug 27, 2017)

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."


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## prex (Aug 27, 2017)

Iron Bridge Resources Reports Year-End Reserves and Fourth Quarter 2017 Financial Results and Provides Operations Update
March 20, 2018 18:28 ET

http://globenewswire.com/news-release/2018/03/20/1443249/0/en/Iron-Bridge-Resources-Reports-Year-End-Reserves-and-Fourth-Quarter-2017-Financial-Results-and-Provides-Operations-Update.html


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## prex (Aug 27, 2017)

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

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


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## prex (Aug 27, 2017)

IBR is finally back at my entry point. I do not expect much from the crypto currency mining activities, however they have some of the best rock in the basin.

Iron Bridge Resources Announces Initial, Enhanced Gold Creek Well Production Rates
CALGARY, Alberta, May 17, 2018 (GLOBE NEWSWIRE)


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## prex (Aug 27, 2017)

Velvet Energy Announces Premium All Cash Offer to Acquire Iron Bridge Resources
May 22, 2018
https://globenewswire.com/news-rele...h-Offer-to-Acquire-Iron-Bridge-Resources.html


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## prex (Aug 27, 2017)

IBR currently trading above the Velvet offer of $.75 

Here is a link to an interesting article and perspective on the takeover bid
https://oilandgas-investments.com/2...er-battle-in-the-oilpatch-how-un-canadian-eh/

"CONCLUSION—both the math and the Street say another, higher bid is coming, and my guess it’s much closer to $1."


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