i3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) chief executive Majid Shafiq speaks to Thomas Warner from Proactive after the independent oil and gas company released an interim report and an operational update for H1 2023.
Shafiq shares a comprehensive update on the company's first half achievements and financial milestones, saying i3 Energy successfully completed eight gross wells, contributing to a 9% YoY production increase, despite challenges like facility maintenance and wildfires. The year-end reserves audit for 2022 showed an impressive 80% increase in RTP reserves, reflecting a robust resource base with a 22-year reserve life.
Financially, i3 Energy refinance their outstanding loan notes with a $100mln Canadian facility from Trafigura, strengthening their financial position. They also managed to reduce operating costs by 4% through synergies and contract renegotiations. Additionally, they revised their EBITDA and NOI forecasts upwards by over 20%, driven by improving WTI prices and cost-efficiency measures.
Regarding the perennial question of share buybacks versus dividends, Shafiq emphasises the company's focus on growth and the capacity to deliver high returns through drilling opportunities and potential M&A activities.