i3 Energy eyes regular dividend payments as cash flow, production set for big boost

Thu, 17th Jun 2021

Oil and gas company i3 Energy said it would pay its maiden dividend, and seek to become a regular dividend payer, driven by expectations for strong results from the Western Canadian Sedimentary Basin assets acquired last year. 'i3's WCSB initiatives are expected to materially increase both production and free cash flow, which is expected to directly translate into healthier cash distributions and a stronger balance sheet to pursue opportunities as they arise,' the company said. I3 said it would reclassify its previously announced dividend of CAD 2 million as a special dividend, pending a court decision, expected 29 June, and thereafter seek to regular dividend. Half-yearly dividends will be paid alongside the company's release of each of its interim and annual reports, with the first half-yearly dividend payment expected to be made in September 2021 for up to 30% of i3's full H1 2021 free cash flow, the company said. On the operational front, two wells are targeting for drilling with a partner at the company's Wapiti Elmworth. Operations are expected to commence shortly and anticipated to conclude in early Q3 2021. 'These oil-weighted wells are expected to initially increase i3's production by about 175 barrels of oil equivalent per day and are estimated to return the full investment of $2.1 million in 1.3 years based on current commodity strip pricing,' the company said. 'The company has additionally entered a Letter of Intent to acquire 230 boe/d of Wapiti production, a non-core asset to the seller, whereafter i3 intends to conduct six reactivations to bring NTM production to an estimated 310 boe/d at a total acquisition and capital cost of USD 410k. This production acquisition is expected to complete in Q2 2021,' it added. Story provided by StockMarketWire.com

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