RNS31 Mar 2021 08:23
I expect this is going to be somewhat underwhelming reading for some of the forums jam tomorrow remoaners :-)
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.
Maiden Dividend
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."
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no hats were eaten during the recreation of this newsflash
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