i3 Energy PLC - oil & gas company with assets and operations in the UK and Canada - Shares rise 8% Thursday after announcing the potential payment of a dividend which could be made as early as July. Having acquired a large production package in 2020, i3 notes that its assets have outperformed the company's expectations. As a result, i3 will reclassify its previous dividend of CAD2 million as a special dividend, which will be paid if court proceedings to cancel its share premium account are successful.
Aberdeen, Scotland-based i3 Energy says the cancellation of its share premium account is hoped to be confirmed on June 29 at a court hearing. If approved, this put i3 on course to make dividend distributions. It will set the special dividend's ex-dividend date for July 8, with the payout to be made in late July.
i3 Chief Executive Majid Shafiq comments: "i3 is continuing to deliver on its stated strategy of economics-driven buying or building, dependent on attainable metrics.
"On our intention to become a dividend payer, the necessary share capital reduction is nearly behind us and we expect to commence returning value to our shareholders by way of a special dividend, with scheduled half-yearly dividend payments thereafter alongside our interim and annual reports."
i3 also announces plans to drill two wells in July at its Canadian Wapiti Elmworth acreage with an expected cost of USD2.1 million. Operations are expected to commence shortly and are anticipated to conclude in the third quarter.
The wells are expected to initially increase i3’s production by 175 barrels of oil equivalent per day and are estimated to return its investment in around 16 months.
I3 also announces it has signed a letter of intent to buy 230 boepd of Wapiti production for around USD410,000. The production acquisition is expected to complete in the second quarter.
Current stock price: 9.8 pence, up 8% Thursday
Year-to-date change: up 79%
By Will Paige; willpaige@alliancenews.com
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I3 Energy (I3E)