i3 Energy (LON: I3E) shares are rallying on Wednesday after the company said it has now executed a binding sales and purchase agreement to acquire 230 barrels of oil per day of Wapiti production.
The deal is a non-core asset to the seller, with i3 intending to conduct six well reactivations to bring the next twelve months production to an estimated 310 barrels of oil per day at a total cost of $410k.
i3 said it translates to an acquisition cost of only 0.56x expected next twelve months net operating income.
The production acquisition is expected to complete in early Q3 2021.
The company also announced that the final confirmation hearing in the High Court of Justice of England and Wales was held yesterday, and the court approved the cancellation of i3 Energy's share premium account.
The court order and court-approved statement of capital have been delivered to the Registrar of Companies, and the capital reduction will become effective upon the registration of the court order, which is expected to occur in the next few days.
The ex-dividend date, record date and payment date will be announced immediately following confirmation of the registration, the company said. i3 expects the ex-dividend date to be during the week commencing 12 July 2021.
i3 Energy's share price is currently up 8.54% at 13.35p, adding to its 142.7% gains in 2021.
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