Q3 Operational and Financial Update EASTLEIGH, UK / ACCESSWIRE / October 26, 2021 / i3 Energy plc (AIM:I3E)(TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, is pleased to provide the following update.
Highlights:
- Q3 2021 average production of approximately 13,740 boepd, based on net field sales estimates, with September averaging approximately 18,985 boepd.
- Inclusive of i3's current hedges, full-year 2021 net operating income ("NOI" = revenue minus royalties, opex, transportation and processing) is now forecast to be approximately USD 65.7mm, and USD 119.1mm (assuming CAD:USD 1.24) for the next twelve months ("NTM") from 1 October 2021. This increased guidance is due to lower-than-expected base declines, the results of our reactivation programme and strong commodity prices.
- Dividend payments commenced during the quarter with a special dividend of 0.16 pence per share paid on 6 August 2021 and the H1 dividend of 0.2 pence per share to be paid on 29 October 2021.
- Closed the strategic acquisition of approximately 8,400 barrels of oil equivalent per day ("boepd") (51% oil and NGLs) of predominantly operated, conventional, low-decline production, and a network of complementary midstream infrastructure from Cenovus Energy Inc. ("Cenovus") in i3's Central Alberta core area.
- Completed a bolt-on acquisition of 230 boepd in the Wapiti area, which i3 has since increased to approximately 480 boepd through field operations.
- Completed well reactivation programmes in recently acquired South Simonette and Wapiti acreage, adding approximately 970 net boepd.
- Drilled and completed six wells, with two wells being drilled in each of the Marten Hills, Wapiti and Pembina areas, adding combined net production of 565 boepd, with the 15-29 Ellerslie well at Pembina still to come on production.
Majid Shafiq, CEO of i3 Energy plc, commented:
"The third quarter of 2021 continued with an intense level of activity across all fronts. We closed the transaction with Cenovus which added circa 8,400 boepd of production to our portfolio and, together with ongoing optimisation of our pre-existing asset base and some smaller transactions, we have managed quarter-on-quarter production growth and are currently producing circa 19,000 boepd.
We are now finalising our capital programme for the rest of this year and for 2022, following which we will commence deployment of free cash flow into an active, operated development drilling programme, which we expect to materially grow our production base into a very positive commodity price environment.
We are also extremely pleased to have commenced dividend payments this quarter and look forward to completing payment of our H1 2021 dividend on 29 October."
Q3 Production
Production in Q3 2021 from the pre-Cenovus acquisition assets, based on net field sales estimates, averaged 9,975 boepd (compared to 8,905 boepd in Q2 2021 and 9,090 boepd in Q1 2021), and comprised of field estimate sales equalling 34.6 million standard cubic feet of gas per day ("mmscfd"), 2,500 barrels per day ("bbl/d") of natural gas liquids, 1,490 bbl/d of oil and 215 boepd of gross overriding royalty interest production. Since acquiring its initial assets in Canada in Q3 2020, the Company has successfully implemented its strategy to offset natural field declines and grown production with a combination of efficient organic growth and small bolt on acquisitions.
Aggregate corporate production in Q3 2021 based on net field sales estimates, including 42 days production from the assets acquired from Cenovus on 20 August 2021, the closing date for that transaction, averaged approximately 13,740 boepd and comprised of net field estimate sales equalling 44.5 mmscfd, 3,990 bbl/d of natural gas liquids, 2,070 bbl/d of oil and 265 boepd of gross overriding royalty interest production
Current aggregate corporate production based on net field sales estimates and before gross overriding royalty interest production averaged approximately 18,960 boepd, for the seven-day period ending 16 October 2021, equalling 57.3 mmscfd, 5,880 bbl/d of natural gas liquids, 3,520 bbl/d of oil.
https://www.accesswire.com/669636/i3-Energy-PLC-Announces-Q3-Operational-and-Financial-Update