logo-loader
viewi3 Energy PLC

I3 Energy signs agreement to acquire Canadian producer and carbon offset group for US$59mln

Gain produced at a rate of around 11,000 barrels per day equivalent throughout 2019

i3 Energy PLC -

i3 Energy PLC (I3E) has signed a binding agreement to acquire private Canadian oil and gas company Gain Energy through a reverse takeover for US$58.8mln.

AIM-listed I3 had flagged the deal two weeks ago, but not named the target.

Gain operates in the Western Canadian Sedimentary Basin, the same area of operation as Toscana, another Canadian company I3 agreed to buy two weeks ago.

Gain produced at a rate of around 11,000 barrels per day equivalent (boepd) throughout 2019 and generated around US$34mln in underlying profits.

Another attraction of the deal is the Canadian group’s stake in the Weyburn carbon-capture plant, I3 said in a statement.

This is the fourth largest carbon capture, utilisation and storage project in the world, it added, with Gain's interest estimated to offset approximately 17,760 boepd of scope 1 greenhouse gas emissions.

Gain’s assets will add 26.4 MMboe (million barrels) producing reserves and 69.4 MMboe 2P reserves to i3's portfolio, the group noted.

Toscana, meanwhile, produced 1,065 barrels per day in 2019 and generated US$4mln in field netbacks, but has US$89mln in accumulated tax pools that can be applied to Gain’s production.

I3 said its shares will remain suspended on AIM until a readmission document is completed that will contain fuller details of both transactions.

At the time of the Toscana deal announcement, I3 said it was in talks with its investors and brokers and is seeking funding for the consideration of the proposed acquisition and general corporate purposes.

Quick facts: i3 Energy PLC

Price: 6.2 GBX

AIM:I3E
Market: AIM
Market Cap: £6.68 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of i3 Energy PLC named herein, including the promotion by the Company of i3 Energy PLC in any Content on the Site, the Company receives from said...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

i3 Energy team detail £30mln fundraise and Canada growth strategy

i3 Energy PLC's (LON:I3E) Majid Shafiq and Graham Heath speak to Proactive's Andrew Scott soon after confirming they've raised at least £29mln, with a further £1mln subject to regulatory approval. The company last week struck a deal to concurrently sell a package of the Gain assets to a third...

2 days, 8 hours ago

2 min read