i3 Energy PLC (LON:I3E)(TSE:ITE) announced it has executed a binding sales and purchase agreement to acquire 230 barrels of oil equivalent per day of Wapiti production.
It is a non-core asset to the seller, where i3 said it intends to conduct six well reactivations to bring Next Twelve Months (NTM) production to an estimated 310 barrels of oil equivalent per day at a total acquisition and capital cost of US$410,000.
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The firm said it translates to an acquisition cost of 0.56x expected NTM net operating income, which is revenue minus royalties, operational expenditure, transportation and processing.
This production acquisition is expected to complete in early third quarter 2021, with a 1 April 2021 effective date.
The oil and gas company added that the final confirmation hearing in the High Court of Justice of England and Wales was held on Tuesday and the court approved the cancellation of i3 Energy's share premium account.
The court order together with the court approved statement of capital has been delivered to the Registrar of Companies and the capital reduction will finally become effective upon the registration of the court order by the Registrar of Companies, which is expected to occur in the next few days.
The Ex-dividend date, Record Date and Payment Date will be announced immediately following confirmation of the registration, the group said.
With the predicted timing of the above registration by the Registrar of Companies, i3 expects the Ex-dividend date to be during the week commencing 12 July.
Shares rose 5% to 12.95p on Wednesday morning.