i3 Energy plc said that unstable prices had created possible merger and acquisition opportunities after the company posted a rise in production and decrease in revenue.
PERFORMANCE
In the first six months of the year, revenue totalled $75.5m (H1 2022: $101.6m) from its operations in Canada.
The company averaged 20,640 boepd (H1 2022: 18,950) following a successful winter drilling and workover programme improving figures for Q1 2023.
Average production fell in Q2 due to forest fires in northern Canada affecting Lodgepole, Edson, Wapiti, Simonette, Tony Creek and Noel in northern British Columbia.
In June, scheduled turnarounds temporarily shut in production in the central Alberta areas of Gilby and Rimbey, and to a lesser extent Wapiti in the North.
i3 performed twenty operated turnarounds on associated facilities in Central Alberta at a gross cost of US$2.9 million ($2.4m net).
During the first half of 2023, third-party operators drilled and brought on production three wells within the company’s royalty interest properties.
A portion of i3’s own 2023 drilling programme began in late Q4 2022, focusing on Central Alberta (Cardium), Wapiti (Cardium, Dunvegan), and Clearwater (operated and non-operated) assets.
The company participated in eight gross (5.5 net) wells across its drilling portfolio, including seven gross (five net) operated wells and one gross (0.5 net) non-operated well.
i3 and partner Europa Oil & Gas plc continue discussions on the potential development of the Serenity field in the UK.
OPTIMISATION
Guidance for full year 2023 remains 20,000 – 21,000 boepd and net operating income has risen from $75 – 80m to $90 – 95m following improved prices in July and August.
Chief executive officer Majid Shafiq added: “Price volatility has also resulted in potential opportunities for growth via M&A and we continue to monitor the market to ensure our capital allocation for the remainder of the year is optimised.
“We are confident that our business model, allied with our asset base and the skills and dedication of our staff, will continue to create and extract value through the commodity price cycle.”