i3 Energy plc (AIM:I3E) (TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, announces the following Q3 2023 operational and financial update.

Q3 Highlights:

• Average Q3 2023 production of approximately 21,156 barrels of oil equivalent per day ("boepd"), representing a 14% increase over the prior quarter and a 3% increase from Q3 2022.
• Net operating income for the quarter reflecting restored production and strengthening commodity prices was USD 25.97 million (as compared to USD 17.66 million in Q2), representing a 47% increase quarter-over-quarter.
• i3 remained focused on repayment of its new credit facility, with the original drawn amount of CAD 75 million reduced to CAD 66.67 million (USD 49.39 million) and net debt as at 30 September 2023 of approximately USD 27.56 million, down from USD 38.98 million as at 30 June 2023.
• As part of i3's commitment to its total shareholder return model, dividends of £3.08 million (USD 3.91 million) were declared in Q3 and paid in October 2023.
• Post quarter-end the board of directors approved a USD 6 million capital program, for the balance of 2023, centred on the Company's Glauconite and Leduc oil fairways in Central Alberta.

Majid Shafiq, CEO of i3 Energy plc, commented:
"Following the major scheduled maintenance activities and disruptions due to wildfires in Q2 we are very pleased with the recovery of production levels in Q3, and we remain on track to meet our previously stated guidance for 2023 production and net operating income. We will also shortly commence a three well drilling programme, focussed on oil development in Central Alberta."

Production Update

Production in Q3 2023 averaged 21,156 boepd, comprised of 68.7 million standard cubic feet of natural gas per day ("mmcf/d"), 4,887 barrels per day ("bbl/d") of natural gas liquids ("NGLs"), 4,485 bbl/d of oil & condensate and 342 boepd of royalty interest production. The strong quarterly production represents an increase of greater than 14% from Q2 2023 and approximately 3% over Q3 2022, despite a 21-day curtailment in Central Alberta associated with a meter station outage. The meter station outage impacted i3's calendar-day volumes by 1,120 boepd in August or 377 boepd for Q3 2023. The performance of the assets in Q3 2023, post Q2 2023 turnarounds and disruptions, and in light of the downtime experienced in Q3 2023, reflects both the deliverability of the underlying reservoirs and their predictable low-decline nature, and supports the quality of the Company's large inventory of development drilling locations.

Q3 2023 Operations

The Company experienced a strong Q3 2023 after a challenging Q2 2023 period in which corporate production averaged 18,529 boepd, with approximately 3,100 boepd offline for the quarter, due to restrictions resulting from the Alberta wildfires, unanticipated apportionment issues associated with the Pembina Peace Pipeline liquids line, critical downtime related to debottlenecking projects and i3 turnaround initiatives (both operated & non-operated). After such significant downtime experienced in Q2 2023, the Company is pleased to report that production returned rapidly to pre-restricted levels and continued to outpace anticipated declines throughout Q3, achieving Quarterly production of 21,156 boepd.

Capital activities in Q3 2023 were limited to USD 1.73 million (CAD 2.23 million), with the Company focussing on reestablishing and optimizing productive capacity post turnarounds and disruptions experienced in the prior quarter. Of the total Q3 2023 capital expenditure programme, i3 invested USD 0.41 million (CAD 0.55 million), focused primarily in the Lodgepole area of Central Alberta, on pipeline infrastructure to consolidate and optimize volumes at its operated 13-35-047-10W5 gas plant.

Similar gathering system improvements in the Wapiti area, completed in Q2 2023 by a third-party operator, have alleviated line pressure constraints and allowed the Company to optimize production in the quarter from its 3-well Cardium pad that was drilled and brought on production earlier this year. Post debottlenecking, the 3 Cardium wells have performed above GLJ's Proved Plus Probable type curve expectations, with unrestricted rates having exceeded peak rate predictions.

The strong volumes associated with the Wapiti programme have occurred despite unanticipated apportionment issues associated with the Pembina Peace Pipeline liquids line, resulting in reduced liquids yields realized by area operators. i3 expects the apportionment issues to be resolved over the coming months as local operators work diligently to optimize throughput efficiencies for all relevant parties. This was evidenced by September's production, which averaged 21,380 boepd, comprised of 67.6 mmcf/d, 5,200 bbl/d of NGLs, 4,480 bbl/d of oil & condensate and 433 boepd of royalty interest production. 

KeyFacts Energy: i3 Energy UK country profile