i3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) announced achieving a record annual production of 20,711 barrels of oil equivalent per day (boepd), hitting the upper limit of its projected range. This update comes as part of the oil and gas company’s fourth-quarter briefing.
This milestone follows the successful completion of i3’s 2023 drilling program, which saw the delivery of 12 wells, all within budget and meeting expectations. Notably, four of these wells were finalized in the fourth quarter.
The company reported generating approximately $93 million in net operating income for 2023, aligning with its forecasts. Additionally, it declared and paid dividends of £3.083 million in the fourth quarter, culminating in a total of £15.338 million for the year.
i3 Energy anticipates a year-end net debt of around $23 million.
Majid Shafiq, the CEO, commented on the successful completion of the annual capital program, noting that the dozen wells drilled in 2023, like the previous year’s program, surpassed pre-drill expectations. He expressed satisfaction with the program’s contribution to the company’s strong financial performance, achieved despite challenging market conditions and a focus on operational efficiency. This success enabled the company to meet its production and net operating income targets for the year.
Shafiq further stated that the company’s robust production and financial results supported its capital program, debt repayments, and significant dividend payments to shareholders, totalling over £15 million. He emphasized the company’s extensive drilling inventory, offering numerous opportunities for maximizing capital return.
Looking ahead to 2024, with ongoing challenges in commodity prices, particularly North American gas, i3 Energy aims to maintain a flexible business strategy, balancing between high-return organic drilling and potential inorganic growth opportunities.
Shafiq also mentioned ongoing initiatives expected to influence the 2024 drilling plans, with updates to be provided to the market in the coming month.
