i3 Energy PLC chief executive Majid Shafiq said the company is very pleased with the continued strong performance in Canada, where production averaged 18,095 barrels of oil equivalent per day (boepd) in the first quarter of 2022.
The company, in a statement, said it now forecasts full-year net operating income of some US$241mln, based on an expanded capital investment programme that seeks to deliver further low-risk, high-return development.
“We exited Q1 above 20,000 boepd, in part due to the contribution from wells drilled as part of our maiden operated drilling programme. Results from wells drilled to date have met or exceeded management's pre-drill geological and production capacity expectations and have been drilled within budget,” Shafiq said.
“This, allied with the performance of our base production assets, increased NOI projections and strong commodity price forecasts has led us to plan for an expanded drilling programme for the second half of the year.”
He added: “An increase in dividend pay-out for 2022 is also expected to be announced in due course."
The capital budget increased by US$50mln to US$97mln and the enlarged work programme is expected to materially enhance 2022 production and net operating income.
i3 highlighted that it has a large inventory of predictable and highly-economic well locations in Central Alberta. It said it expects to achieve peak production above 24,000 boepd.
Shareholder returns began in July 2021 with a maiden dividend paying out a total of £3mln to shareholders and the company’s dividend commitment for 2022 is pitched at a minimum of £11.8mln.
It intends to return 30% of cash flow back to shareholders, through a monthly dividend schedule.