i3 Energy plc (AIM:I3E) (TSX:ITE), the independent oil and gas company with assets and operations in the UK and Canada, is pleased to provide the following update.
i3 has allocated CAD$2 million (£1.16 million) in relation to its planned Q1 2021 dividend. The Company can only pay a dividend out of distributable profits and i3 currently has retained losses. i3 is expecting to effect a reduction of share capital to create distributable reserves to offset the losses and create surplus profits. A reduction of the Company’s share capital is subject to loan note holder, judicial, and shareholder approval by way of a special resolution at a general meeting. i3 expects to shortly distribute a special resolution and circular to its shareholders which will specify the exact amount of the proposed reduction in share capital and explain the background and reasons for the reduction. Upon approval of the special resolution at the general meeting, i3 will apply to the UK courts to confirm the reduction and will immediately thereafter distribute the abovementioned dividend payment to its shareholders.
Noel Gas Well
As announced on 23 February, in December 2020 i3 completed a successful flow-test on a horizontal gas well into the prolific Falher formation at its acreage in Northeast British Columbia (“BC”). The tie-in project in Noel, BC progresses on time and on budget. Regulatory approvals and First Nation consultations are ongoing, and construction is anticipated to commence once surface access conditions allow, following spring breakup (an operational lull during which snowmelt and frost-release create soft and muddy ground conditions). The well is expected to be brought on at approximately 500 boe/d.
Majid Shafiq, CEO of i3 Energy plc, commented:
“Although our balance sheet re-structuring has taken longer than anticipated, we are delighted that we are close to entering the final stages of the process to allow the declaration and payment of our maiden dividend and commence delivery on our promise to distribute at least 20% of our free cash flow annually to our shareholders as dividends, subject to necessary consents. Our Canadian production assets continue to perform well, and we are actively advancing projects to maintain and grow production from our current portfolio and are evaluating a number of production acquisition opportunities. In the UK, negotiations with counterparties for a farm-out of Serenity appraisal drilling continue to be advanced.”
Notes to Editors:
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.
i3 is dedicated to responsible corporate practices and the environment, and places high value on adhering to strong Environmental, Social and Governance (“ESG”) practices. i3 is proud of its performance to date as a responsible steward of the environment, people and capital management. The Company is committed to maintaining an ESG strategy, which has broader implications to long-term value creation, as these benefits extend beyond regulatory requirements.
i3 Energy is listed on the AIM market of the London Stock Exchange. For further information on i3 Energy please visit https://i3.energy/
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
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