Last checked at 9 Sep 2021 07:00
9 September 2021
i3 Energy plc
("i3", "i3 Energy", or the "Company")
Operational Update
i3 Energy plc (AIM:I3E) (TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, is pleased to provide the following update.
Marten Hills Clearwater Farm-in Drilling
Marten Hills Clearwater wells 01-12-075-26W4 and 02-12-075-26W4 which were drilled, completed and tied into production infrastructure in late July, have now cleaned-up and flowed back drilling fluid lost during drilling operations. The wells are now flowing sales volumes and aggregate average production, post clean-up from both wells for the period 23 August to 31 August was 238 bopd.
i3 owns a 50% working interest in these wells and has the option under the associated farm-in agreement, previously announced on 5 May 2021, to participate in an additional 7 wells, at least 4 of which will be spud by 31 March 2022, which would see i3 earn 11.5 net sections of land (circa 29.4 km2) in the Marten Hills, Cadotte and West Dawson areas of the Clearwater play.
Wapiti Production Acquisition
The Company completed the Wapiti production acquisition on 20 July 2021, with a 1 April 2021 effective date. These assets were producing 230 boepd at the time of i3's acquisition. The Company completed both compression and well reactivations resulted in material production gains. Production from the assets more than doubled and during the month of August averaged 471 boepd, considerably higher than our initial expectation of circa 300 boepd.
Wapiti Elmworth Drilling
The second well in this drilling programme, 08-17-71-10W6, was spud on 9 Aug 2021. The well reached a total measured depth of 3,346m, at a maximum true vertical depth of 1,341m which included a 1,776m horizontal section in the targeted Dunvegan formation. The horizontal leg contacted excellent reservoir, ranging from 10-15% porosity with strong gas shows and oil staining. The well was drilled on time and on budget, and the rig was released on 21 August 2021. Stimulation, completion and production tie-in operations will shortly commence on both this well and well 09-17-071-10W6 (the first well drilled in this programme). These oil-weighted wells are expected to initially increase i3's production by approximately 175 boepd and are estimated to return the full investment in 1.3 years based on current commodity strip pricing.
Majid Shafiq, CEO of i3 Energy plc, commented:
"We are delighted with the results from these oil focussed, high return projects which add immediate production and cashflow to our portfolio."
END
Qualified Person's Statement
In accordance with the AIM Note for Mining and Oil and Gas Companies, i3 discloses that Majid Shafiq is the qualified person who has reviewed the technical information contained in this document. He graduated with a Master's Degree in Petroleum Engineering from Heriot-Watt University in 1988 and is a member of the Society of Petroleum Engineers. Majid Shafiq consents to the inclusion of the information in the form and context in which it appears.
Enquiries:
| i3 Energy plc |
|
| Majid Shafiq (CEO) / Graham Heath (CFO) | c/o Camarco Tel: +44 (0) 203 781 8331 |
| WH Ireland Limited (Nomad and Joint Broker) |
|
| James Joyce, Darshan Patel | Tel: +44 (0) 207 220 1666 |
| Canaccord Genuity Limited (Joint Broker) |
|
| Henry Fitzgerald- O'Connor, James Asensio | Tel: +44 (0) 207 523 8000
|
| Tennyson Securities (Joint Broker) Peter Krens
| Tel: +44 (0) 207 186 9030
|
| Camarco Owen Roberts, James Crothers, Violet Wilson |
Tel: +44 (0) 203 781 8331 |
Notes to Editors:
i3 Energy is an oil and gas Company with a low cost, diversified, growing production base in Canada's most prolific hydrocarbon region, the Western Canadian Sedimentary Basin and appraisal assets in the North Sea with significant upside.
The Company is well positioned to deliver future growth through the optimisation of its existing 100% owned asset base and the acquisition of long life, low decline conventional production assets.
i3 is dedicated to responsible corporate practices and the environment, and places high value on adhering to strong Environmental, Social and Governance ("ESG") practices. i3 is proud of its performance to date as a responsible steward of the environment, people, and capital management. The Company is committed to maintaining an ESG strategy, which has broader implications to long-term value creation, as these benefits extend beyond regulatory requirements.
i3 Energy is listed on the AIM market of the London Stock Exchange. For further information on i3 Energy please visit https://i3.energy/
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.