RE: PR5 May 2021 09:38
i3 Energy Plc (LON:I3E, TSE:ITE) told investors that its production in Canada outperformed expectations in the first quarter, with output averaging 8,856 barrels oil equivalent per day.
It was achieved despite adverse weather conditions and the performance remains above what had been estimated in the competent persons report commissioned last year, at the time of the asset acquisition.
The rate of 8,856 boepd comprised 3.16mln cubic feet of gas, 2,123 barrels of natural gas liquids and 1,466 barrels of oil per day.
The company, in a statement, also noted its financial discipline and its hedging strategy whilst highlighting that expectations for net operating income has been raised to C$38mln for the full year.
"We are very pleased with the performance of our portfolio in the first quarter of 2021, with production levels continuing to be above expectation,” said chief executive Majid Shafiq.
“We continue to evaluate opportunities to extract incremental value from our portfolio and look forward to completing the first of these initiatives with the tie-in of the Noel well in the middle of the year.”
The Noel gas well is due to come online for production in June.
Presently the programme to tie-in the Noel well is progressing on schedule and on budget, and remaining milestones include regulatory approval and tie-in to third-party gas processing facilities.
Elsewhere, the company highlights significant initiatives at the Clearwater play where planning is underway for an appraisal and development drilling programme in the Marten Creek area. This follows successful oil appraisal recompletions.
The company recently expanded its footprint in Clearwater with a farm-in to additional acreage, some 29.4 square kilometres, via a programme of drilling activity. The first two of nine wells were spudded in the Marten Hills area in May. A further 17.9 square kilometres were also picked up, through the recent Alberta Crown Land Sale.
Back in the North Sea, the company noted that farm-out efforts continue for the Serenity project.
“The farm-out process for the Serenity appraisal drilling in the UK continues to make progress and we remain confident that we will achieve a successful outcome,”
“Although our balance sheet restructuring has taken longer than anticipated we will shortly complete this process and pay our maiden dividend."
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