I3 Energy (I3E ) reported an average production of approximately 13,740 boepd for 3Q21  based on net field sales estimates, with September averaging around 18,985 boepd.

The oil and gas company, which holds assets and operations in the UK and Canada, told investors that it has continued 3Q21 “with an intense level of activity across all fronts.”

i3 said its FY21 net operating income is now forecast to be around $65.7 million, and $119.1 million (assuming CAD:USD 1.24) for the next twelve months starting from 1 October 2021.

The Group explained to investors that the increased guidance is due to lower-than-expected base declines, the results of its reactivation programme, as well as strong commodity prices.

Dividend payments commenced during 3Q with a special dividend of 0.16p per share paid on 6 August 2021 and the 1H21 dividend of 0.2p per share to be paid on 29 October 2021.

i3 closed its acquisition of around 8,400 barrels of oil equivalent per day of predominantly operated, conventional, low-decline production, and a network of complementary midstream infrastructure from Cenovus Energy in i3's Central Alberta core area during the quarter.

The Company also completed a bolt-on acquisition of 230 boepd in the Wapiti area during 3Q21, which i3 has since increased to approximately 480 boepd through field operations.

Meanwhile, i3 completed well reactivation programmes in THE recently acquired South Simonette and Wapiti acreage, adding around 970 net boepd. In addition, i3 drilled and completed a further six wells to add a combined net production of 565 boepd in 3Q.

Commenting this morning, CEO, Majid Shafiq, said: “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.”

I3 is now finalising its capital programme for the rest of this year and for 2022. Following this, it expects to deploy free cash flow into an ‘active, operated development drilling programme.’

I3 is aiming to grow its production base into “a very positive commodity price environment.”

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