(Alliance News) - i3 Energy PLC on Wednesday said that its subsidiary, i3 Energy Canada Ltd, has signed a deal for the sale of several royalty assets.
According to the UK and Canada-focused oil and gas company, the agreement is with "a newly formed private royalty company", for a total gross cash consideration of USD24.8 million.
The disposition is comprised of i3 fee royalties, i3 gross overriding royalties, as well as certain newly created royalties on a minor subset of previously unburdened lands.
Proceeds will go towards the transition of i3's capital structure, the firm explained. More specifically, it will fully eliminate i3's outstanding bank indebtedness and establish a working capital surplus.
"The increased liquidity on the company's balance sheet combined with its stable cash flows, will support both its organic and inorganic initiatives, as we actively look towards a dynamic 2024," said i3 Energy Canada President Ryan Heath.
i3 Energy shares were trading 4.5% higher at 12.16 pence each in London on Wednesday afternoon.
By Holly Beveridge, Alliance News reporter
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