i3 Energy PLC has upped earnings guidance for the current year following the recent rise in oil and gas prices and higher production as disruption eases from the wildfires in Alberta, Canada.
Production in the June quarter was reduced by 3,100 barrels per day (boepd) due to restrictions caused by the fires along with scheduled pipeline maintenance and well workovers.
Average production in the quarter was 18,500 boepd, down 5% on a year ago though the run rate had recovered to 22,000 by the start of the current quarter.
As a result of the higher crude price, i3 now expects to post net operating income for the full year of between US$90-95 million compared to US$75-80 million previously.
Revenues in the half year to June were US$75.5 million (US$101 million) with net operating income of US$38.9 million (US$68.8 million).
Majid Shafiq, chief executive, said: “Improvement in commodity prices in July and August and future pricing has resulted in an increase of around 20% in our forecast for full-year net operating income to US$90 to 95 million.
“Price volatility has also resulted in potential opportunities for growth via M&A and we continue to monitor the market to ensure our capital allocation for the remainder of the year is optimised.”