i3 Energy PLC Operational Update (8832G)
July 29 2021 - 1:00AM
UK Regulatory
TIDMI3E
RNS Number : 8832G
i3 Energy PLC
29 July 2021
29 July 2021
i3 Energy plc
("i3", "i3 Energy", "i3 Canada", 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, announces
the following update.
Marten Hills Clearwater Drilling
Well completion, production equipment installation and tie-in
operations have been completed for wells 01-12-075-26W4 and
02-12-075-26W4. Eight horizontal lateral legs (totalling 13,057m in
the 01-12 well and 12,644m in the 02-12 well, at a maximum true
vertical depth of 630m) were drilled from each wellbore and
encountered a clean upper shoreface sandstone, with porosities
ranging from 24% to 27%, and oil was evidenced throughout via oil
shows on cuttings. The wells are now on production and flowing back
drilling fluid. This clean-up process is expected to take
approximately three to four weeks, after which the market will be
updated on initial stabilised oil flow rates.
i3 Energy 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 km(2) ), in the Marten Hills,
Cadotte and West Dawson areas of the Clearwater play.
Wapiti Production Acquisition
Announced 30 June 2021, the Company has now completed the Wapiti
production acquisition with a 1 April 2021 effective date. These
assets currently produce 230 boe/d and i3 intends to conduct six
well reactivations to bring Next Twelve Months ("NTM") production
to an estimated 310 boe/d, resulting in a total acquisition and
capital cost of USD 0.4mm, which translates to only 0.56x expected
NTM net operating income (revenue minus royalties, opex,
transportation and processing).
Wapiti Elmworth Drilling
Well 09-17-071-10W6 in i3's Elmworth Wapiti acreage was spud on
27 July 2021. The Company will be drilling two wells with a partner
at a net cost of USD 2.1mm. Operations are planned to conclude in
early Q3 2021. These oil-weighted wells are expected to initially
increase i3's production by approximately 175 boe/d 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 very pleased to have successfully concluded drilling,
completion and tie-in operations on the first two wells in the
Company's Marten Hills Clearwater acreage, on time and on budget.
Operations were performed very efficiently, and the experience will
assist greatly in the programming of the second phase of drilling
on this acreage. These Marten Hills and Wapiti wells are expected
to add very profitable incremental production and cash-flow to the
Company's portfolio. We now look forward to our next drilling
program in Wapiti Elmworth."
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 c/o Camarco
(CFO) Tel: +44 (0) 203 781 8331
WH Ireland Limited (Nomad and Joint
Broker)
James Joyce, James Sinclair-Ford Tel: +44 (0) 207 220 1666
Canaccord Genuity Limited (Joint
Broker)
Henry Fitzgerald- O'Connor, James Tel: +44 (0) 207 523 8000
Asensio
Tennyson Securities (Joint Broker) Tel: +44 (0) 207 186 9030
Peter Krens
Camarco
Owen Roberts, James Crothers, Violet Tel: +44 (0) 203 781 8331
Wilson
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 under the symbol I3E and on the Toronto Stock Exchange
under the symbol ITE. 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.
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END
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