i3 energy plc reported an increase in production as it progressed its interests in Canada and the UK North Sea.
PRODUCTION
The company’s Q2 2022 operational and financial report showed average production of 19,502 boepd, a 116% increase compared with Q2 2021 and an 8% increase from Q1 2022.
i3 recorded the increase despite production curtailments resulting from a major turnaround at a third-party midstream facility, planned maintenance at i3-operated facilities and well shut-ins to enable offset-drilling and completion activity in the company’s core Montney position at Simonette.
OPERATIONS
i3 reported continuing multi-well pad development of its core Glauconite, Cardium and Clearwater holdings and the strategic delineation of the company’s high-impact Simonette Montney position.
The company drilled seven wells (five operated and two non-operated) with production testing underway.
i3 also completed a 25% working interest farm-out of the Serenity discovery to Europa Oil & Gas with drilling on course for mid-September.
The company also published its inaugural annual sustainability report outlining i3’s environment, social and governance (ESG) initiatives and plans to reduce greenhouse gas emissions emissions.
DIVIDEND
i3 increased the minimum annual dividend to be paid in 2022 by 25% to £14.784 million (0.1425 pence/share) on strong operational and financial performance.
The company said it paid out £5.153 million in H1 2022.
i3’s full year 2022 enlarged capital budget as outlined on 9 May 2022 remains unchanged at US$97 million, and the company remains on course to deliver peak 2022 production above 24,000 boepd.
“The company managed to increase base production levels quarter on quarter, without any contribution from our Q2 drilling campaign, despite delays and operational challenges caused by expected seasonal wet weather conditions and maintenance shutdowns at third party facilities,” said chief executive Majid Shafiq.
“The recently drilled wells from our Q2 campaign have been tied in post quarter end and will imminently commence making a material production contribution post clean-up.”
i3 ENERGY
The company’s Canadian interests lie in the Clearwater Play, Central Alberta, Wapiti/Elmworth and Simonette in Alberta.
i3’s UK assets are in blocks 13/23d and 13/23c in the Liberator/Minos High discovery and the Serenity field.