i3 Energy reports strong fourth quarter production

Independent oil and gas company i3 Energy reported average fourth quarter production of 22,757 barrels of oil equivalent per day in an update on Monday, making for an 11% increase from the previous quarter.

The AIM-traded firm’s current production stood at 23,440 barrels equivalent per day, with a record corporate production exceeding 24,000 barrels equivalent per day achieved in December.

It said it had completed its 2022 drilling programme, which delivered 31 gross and 18.4 net wells, meeting or exceeding management expectations and completing about 5% under budget in a high inflationary environment.

In the fourth quarter, the company brought 10 gross wells, or 5.7 net wells, into production, and drilled eight gross wells, or 4.3 net, in its core Central Alberta, Wapiti, and Clearwater assets.

Additionally, i3 said it completed the 13/23c-12 appraisal well on the UK North Sea Serenity field, with a single well field development plan now being progressed.

The company also declared dividends of £5.098m, and paid £3.399m in the quarter, with total dividends of £15.351m paid in 2022.

Finally, the firm said it had started operations on its 2023 $64.05m capital programme ahead of schedule, targeting 23 gross wells, with six gross and 4.3 net wells drilled.

“The fourth quarter was very busy as we completed our 2022 drilling programme which met management expectations, was executed under budget and achieved peak production rates in excess of 24,000 barrels of oil equivalent per day,” said chief executive officer Majid Shafiq.

“We have successfully completed the first phase of our 2023 drilling programme, with multiple wells now on clean-up flow and several Clearwater intervals tested, and we are now on course to deliver positive 2022 financials and reserves data by the end of March.”

At 1332 GMT, shares in i3 Energy were up 3.89% at 19.22p.

Reporting by Josh White for Sharecast.com.