I3 Energy’s (LON: I3E) share price is rising on Tuesday after the company revealed its production volumes in Canada exceeded the forecasted rates of the competent persons reports used for i3's 2020 AIM Re-admission documents by over 1,000 boe/d.
The independent oil and gas company said it expects mid-February strip pricing, 2021 net operating income of approximately C$35 million ($27.6 million), resulting in the group having acquired its Canadian portfolio for just 1.0 times 2021's expected full-year cash flow.
“We remain very pleased with the performance of our Canadian assets, which are producing better than both internal and independent third-party technical evaluator estimates and forecasts, generated at the time of the acquisitions,” commented Majid Shafiq, CEO of i3 Energy.
Production remains stable for the firm, with November to January 2021 averaging 9,150 boe/d.
Elsewhere i3 said high impact horizontal Falher formation production test at i3's Noel property, located in Northeast British Columbia, further confirms the unrecognized potential within its existing diversified portfolio of assets.
“Our Canadian and UK teams continue to pursue synergistic opportunities to grow our platform through accretive M&A, while the current commodity environment also has i3 progressing organic opportunities from within, as is exemplified by the excellent result we've just achieved at Noel,” added Shafiq.
The company expects to declare its maiden dividend in Q1 2021 for payment early in Q2.
I3’s share price is currently up 17.11% at 6.84p.
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