I3 Energy PLC reported a 14% sequential increase in oil production for the third quarter, with the AIM-listed oil and gas company achieving an extraction rate of 21,165 barrels of oil equivalent per day.
This performance reflects a 3% rise compared to the same period last year.
The company witnessed a 47% surge in net operating income from the previous quarter, amounting to US$25.97 million (£21.2 million), buoyed by restored production levels and favourable global commodity prices.
Capitalizing on these positive developments, i3 Energy made strides in reducing its debt by paying off a portion of its new credit facility denominated in Canadian dollars, decreasing the initial borrowed sum from C$74 million to C$66.67 million.
Q3 Highlights:
· Average Q3 2023 production of approximately 21,156 barrels of oil equivalent per day (“boepd”), representing a 14% increase over the prior quarter and a 3% increase from Q3 2022.
· Net operating income for the quarter reflecting restored production and strengthening commodity prices was USD 25.97 million (as compared to USD 17.66 million in Q2), representing a 47% increase quarter-over-quarter.
· i3 remained focused on repayment of its new credit facility, with the original drawn amount of CAD 75 million reduced to CAD 66.67 million (USD 49.39 million) and net debt as at 30 September 2023 of approximately USD 27.56 million, down from USD 38.98 million as at 30 June 2023.
· As part of i3’s commitment to its total shareholder return model, dividends of £3.08 million (USD 3.91 million) were declared in Q3 and paid in October 2023.
· Post quarter-end the board of directors approved a USD 6 million capital program, for the balance of 2023, centred on the Company’s Glauconite and Leduc oil fairways in Central Alberta.
As the third quarter concluded on September 30, the firm’s net debt stood at US$27.56 million (£22.5 million).
In line with its commitment to shareholder returns, i3 Energy distributed dividends of £3.08 million during the third quarter, with payments executed in October.
Following the quarter, the company’s board sanctioned a US$6 million (£4.9 million) investment plan targeting the Glauconite and Leduc oil regions in Central Alberta.
CEO Majid Shafiq expressed satisfaction with the rebound in production post the second quarter’s maintenance and wildfire disruptions, affirming that the company is on course to fulfill its 2023 production and net operating income projections.
The upcoming phase includes initiating a three-well drilling project aimed at oil development within Central Alberta.
I3 Energy’s forecast for 2023 remains steady, with anticipated daily production of 20,000 to 21,000 barrels of oil equivalent and a net operating income target of US$90 million to US$95 million (£73.3 million to £77.4 million) for the year.
