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i3 Energy is growing a production base in Canada

Last updated: 03:30 26 Mar 2024 AEDT, First published: 23:25 20 Jan 2021 AEDT

Snapshot

  • I3 Energy refinances with Canadian bank as it settles Trafigura loan
  • These four AIM North Sea oil stocks are set for a big end to 2022
  • I3 Energy Plc set for very positive catalysts - stockbroker
  • i3 Energy announces strategic refinancing and positive reserves update
i3 Energy PLC -

About the company

i3 Energy is an oil and gas company with a low cost, diversified, growing production base in Canada's most prolific hydrocarbon region, the Western Canadian Sedimentary Basin and appraisal assets in the North Sea with significant upside.

The company is well positioned to deliver future growth through the optimisation of its existing 100% owned asset base and the acquisition of long life, low decline conventional production assets.

How it is doing

25 Mar 2024

i3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) has secured a new C$75 million reserve-based lending facility, and at the same time has settled a prior loan with Trafigura.

The company, in a statement, said the new arrangements ‘enhance its financial flexibility through improved liquidity and enabling acceleration of its growth and income-based business plan’.

At the same time, chief executive Majid Shafiq highlighted that i3 Energy maintains an extremely positive working relationship with Trafigura – which is a major commodities trading and financier in the natural resources sector.

i3 Energy, in a separate statement, formally reported its annual reserves statement which thanks to a successful 2023 capital programme saw the firm maintain inventory- proved and probable (2P) reserves stood at 179.9 million barrels, despite a significant decline in gas prices compared to the prior year.

11 Mar 2024

I3 Energy PLC has proposed a capital reduction plan aimed at boosting reserves to facilitate dividend payments.

Updating on Monday, I3 said the plan would involve the capitalisation of the firm’s £148.5 million transaction reserve through the issue of new shares, which would then be cancelled.

26 Feb 2024

i3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) confirmed a record annual production rate of 20,711 barrels oil equivalent per day (boepd), at the high end of its forecasted range, as the growing oil and gas firm gave an update for its fourth quarter.

It comes after I3’s 2023 drilling program successfully delivered 12 wells within budget and in line with expectations. Four wells were completed in the fourth quarter.

Insight: These four AIM North Sea oil stocks are set for a big end to 2022

23 Sep 2022

It promises to be a big fourth quarter for a number of small-cap North Sea firms and those invested in them.

Onshore shale and fracking garnered a great deal of attention this past week – with IGas Energy and Egdon shares rising – as the government enacted on Thursday the recently announced plans to lift the ban on the controversial extraction technique.

What the brokers say

12 Feb 2022

I3 Energy Plc is set for very positive catalysts both in terms of commodity prices and the group’s operations, that’s according to analysts at WH Ireland.

The stockbroker highlighted that I3 has “its propeller turning” in Canada where a multi-well drill campaign promises to build material production volumes, described by WH Ireland as a development with major strategic implications.

Today, the company provided details of its planned Phase One, US$47mln, capital programme for 2022.

What management says

26 Mar 2024

i3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) chief executive Majid Shafiq joins Proactive's Stephen Gunnion with details of a positive refinancing for the company.

The company has entered into a reserve-based lending (RBL) facility, secured against its Canadian reserves and assets. The facility totals C$75 million, comprising a C$55 million revolver and a C$20 million operating loan, with an option to index the rate to the Canadian prime rate. This new arrangement offers a slightly better interest rate compared to the previous loan and is expected to reduce as central bank interest rates fall. It also effectively halves the company's current interest costs due to cash balances being held with the lending bank, offsetting the loan.

Shafiq said the refinancing has freed up $25 million Canadian annually, previously allocated to amortising the existing loan. This amount will now be reinvested in the business. Approximately C$50 million remains undrawn from the new facility, available for future investment to grow the business. The flexibility and lower interest payments provided by this facility are highlighted as significant benefits.

Meet the management

11 Dec 2020

i3 Energy (LON:I3E) presenting at the Proactive One2One Virtual Forum 10th December 2020

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on 27/6/18