“We will continue our efforts in the remainder of 2020 and beyond to grow our production business,” said Majid Shafiq.
I3 Energy PLC () chief executive Majid Shafiq, in interim results, described 2020 as a transformational year for the company.
“We are now a substantial production company with a full cycle E&P portfolio containing multiple options to create and return value to our shareholders,” Shafiq said.
“We will continue our efforts in the remainder of 2020 and beyond to grow our production business and build the scale required to efficiently and effectively maximise and sustain value creation.”
I3 has agreed two acquisitions in Canada to create the production business, and, recently, also advanced its high value adding project in the North Sea.
Through separate transactions, neither of which closed within the reporting period, the company has amassed more than 10,000 barrels oil equivalent production per day. The bulk of which is described as ‘long-life, low decline’ production.
In the North Sea, it kicked off a farm-out transaction for the Serenity and Liberator appraisal and field development assets.
Financial results comprised a £6.61mln net loss, up from £4.36mln in the comparative period last year, with spending up due to professional fees attached to its acquisition activity. Some £2.11mln was spent on exploration and evaluation work, versus £3mln in 2019.
It ended June with £1.51mln of cash in the bank and since then has raised £29mln through an equity placing, with proceeds earmarked to pay for the GAIN asset acquisition and for working capital.
In the outlook statement, I3 said: “We maintain our strong belief that there is substantial value to be created from our North Sea licences and will continue in our efforts to partner with other industry peers to appraise and develop them.
“We are very excited about our entry into Western Canada and believe it holds tremendous potential to deliver substantial near-term and progressively greater returns to i3’s shareholders.
“The Canadian transactions are expected to create a solid foundation to aggressively build upon, and we are very much looking forward to integrating our UK and Canadian teams together in the coming weeks.”