I3E25 Mar 2021 18:49
Morning Analyst note came out today WH Ireland in UK. “ Following i3 Energy’s operational update of 23 February 2021, we placed our fair value estimate for the company under review (from 15p) (((( doc Note: their old target was .26 Canadian, and they will raise it now. ))). for a revision to reflect i) lower than anticipated declines ii) the value created by the Noel Well (expected onstream in Q2 at 500 boe/d, consisting of natural gas) and iii) rising commodity prices (partly offset by the strengthening GBP). ”” Production exceeding expectations: Relative to the proven and probable reserve estimates of i3 Energy, their reported production of 9,150 boe/d (41% liquids; from November to January) represents a substantial outperformance (+ circa 1,000 boe/d). The unexpected well from the Noel acreage (NE British Columbia) is expected to come onstream at 500 boe/d (natural gas) in 2Q 2021 (announced 23 February 2021). We believe that the initial period of production following i3 Energy’s entry into Canada is critical for gaining an understanding of the asset’s ability to deliver. From that perspective, the assets are overwhelmingly over-delivering. The assets are long-term assets (expected to produce for decades, with average declines). We believe investors can have confidence in the productivity of i3 Energy’s Canadian assets based on the reserve estimates they have been ascribed and the robust production to date. WHI View: The result from the Noel Well would suggest that the company’s newly acquired assets have been under-developed and that there is potential to grow additional value in excess of the company’s currently booked proven and probable (2P) reserves. Positive Trajectory: Operational success and rising commodity prices are combining to create an extremely positive outlook for i3 Energy, in our opinion.
Sign In
Follow the stocks
