I3 Energy Plc (LON: I3E) share price rallied 11.1% after releasing its Q3 financial and operations update. The independent oil and gas company told investors that its average daily production in Q3 was 13,740 barrels of oil equivalent.
The oil firm recorded a surge in production during September 2021, when its average daily production rose to 18,985 boepd.
The company expects to generate a net operating income of $65.7 million during the 2021 financial year while forecasting that it will generate $119.1 million during the next 12 months, starting on October 1, 2021.
I3 Energy also rewarded its shareholders with two dividend payments after paying a special dividend of 0.16p on August 6, 2021, with an H1 2021 dividend of 0.2p scheduled for October 29, 2021.
The oil company acquired Cenovus Energy, which added about 8,400 barrels per day to its overall output, as reflected in the September production numbers.
The firm also expanded its current operation by drilling six new wells, adding 565 barrels of oil per day to its production figures.
I3 Energy expects to maintain its daily production of 18,960 bbl/d of oil over the next 12 months, which, combined with higher commodity prices, could lead to its net operating income crossing the $100 million mark.
Majid Shafiq, i3 Energy plc’s CEO, commented: “The third quarter of 2021 continued with an intense level of activity across all fronts. We closed the transaction with Cenovus, which added circa 8,400 boepd of production to our portfolio and, together with ongoing optimisation of our pre-existing asset base and some smaller transactions, we have managed quarter-on-quarter production growth and are currently producing circa 19,000 boepd.”
Investors cheered today’s update, as evidenced by the rally in i3 Energy shares. However, I wouldn’t rush to buy the shares at current prices since they are trading at the upper end of a wide consolidating range.
I would wait for a convincing breakout or a move lower before opening new bullish positions.
*This is not investment advice.
I3 Energy share price.
i3Enegry shares rallied 11.13% to trade at 14.28p, rising from Monday’s closing price of 12.85p.
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