RE: Management15 Feb 2021 10:44
Continued:
The Toscana portfolio contains a number of production optimisation and opex reduction opportunities which the Company will actively review, implementing those that pass our economic hurdles. Additionally, Toscana has a very large acreage position in the Clearwater play, providing significant growth potential in a moderately higher oil price environment from relatively low cost but highly productive wells.
TSX Listing
i3 Energy has received conditional approval from the TSX to list all its outstanding share capital on the TSX, subject to i3 Energy satisfying the listing requirements set out in the conditional approval letter issued by the TSX. The first day of trading on the TSX is expected to occur on 6th November 2020.
Gain Integration
On completion of the Gain acquisition on 3rd September, twenty-two staff from Gain joined i3 Energy and all contracts for field operating personnel were novated to the Company, delivering to i3 multiple years of knowledge of the acquired assets and related commercial and business relationships. The integration of the Gain assets and business into i3 Energy has proceeded very smoothly and without any operational issues. Toscana has been managing the assets we acquired from Gain since the completion of that acquisition in September under a management and administrative services agreement, thus allowing the assimilation of the Toscana assets and operations to occur immediately in a seamless fashion, with preparation for integration of business systems well advanced.
Production Update
Production from the Gain assets over the period from 1st May (transaction effective date) to 31st August averaged 8,935 boepd (63% gas, 37% liquids). There were scheduled maintenance shutdowns at two non-operated facilities in September, resulting in several wells being shut-in during the month, reducing average production in September to 6,483 boepd (59% gas, 41% liquids). All wells shut in for maintenance operations were back on-line by mid-October. Production during the month of October averaged 8,718 boepd (62% gas, 38 % liquids).
Dividend Timing
The Company envisages the declaration and payment of its first dividend in the first quarter of 2021. As previously disclosed the Company aims to pay out up to 30% of free cashflow as a dividend to shareholders. Based on the current share price, the Company expects the dividend yield to be in excess of 10% on an annual basis.
Serenity Appraisal Drilling Farm-out
The company is in discussions with a counterparty regarding a potential farm-in to the Serenity discovery. Terms are being negotiated and the market will be updated if and when an agreement is reached.
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