i3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) has issued a third-quarter update confirming record production and the company said it now expects to report some US$172mln of full-year net operating profit.
The company's production, which comes from its non-operated well portfolio in Canada, hit 23,000 barrels oil equivalent per day (boepd) for the month of October as additional wells came online and the company said the rate is forecast to reach 24,000 boepd by year-end. For the quarter, the production rate averaged 20,571 boepd, it confirmed.
The 2022 drill programme in Canada is now nearing completion, adding nine wells. i3 today highlighted that the new wells have been delivered in-line with budget and have met or exceeded pre-drill expectations.
i3 Energy chief executive Majid Shafiq described the quarter as “another extremely busy operational period”.
“We achieved record production levels in the quarter and are on track to exceed 24,000 boepd before year end; a highly significant achievement built on the organic growth of the superbly executed drilling campaign in Canada,” Shafiq said in the statement. “The benefits of this drilling success will be largely realised in 2023 as most of the production growth commenced in the second half of the year.”
Whilst the Canadian assets continue to drive higher, the company was recently disappointed by the results of appraisal drilling at the Serenity project in the UK North Sea, nevertheless, the company expects that the UK discovery remains viable for commercialisation.
Analysis of the appraisal and the remaining Serenity project is ongoing.
“Whilst the Serenity appraisal well in the UK didn't prove up the anticipated volumes hoped for, we remain confident in our ability to commercialise value from the discovery,” Shafiq said.
Focussing on finances, meanwhile, he added: “We have commenced our annual budgeting cycle and will announce before year end a 2023 capital programme, based on our total shareholder return model, balancing activities to seek to grow the share price with sustainable growing cash returns to shareholders".
i3 also confirmed it will pay a total of £1.69mln (0.1425p per share) in dividends for the month of November.