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Share Name Share Symbol Market Type Share ISIN Share Description
I3 Energy Plc LSE:I3E London Ordinary Share GB00BDHXPJ60 ORD 0.01P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.0% 11.05 10.90 11.20 11.05 10.90 11.00 372,285 08:07:39
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Oil & Gas Producers 13.0 10.6 3.8 2.9 78

i3 Energy PLC i3 Canada Ltd YE 2020 Reserves

17/06/2021 7:00am

UK Regulatory (RNS & others)


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TIDMI3E

RNS Number : 1707C

i3 Energy PLC

17 June 2021

17 June 2021

i3 Energy plc

("i3", "i3 Energy", "i3 Canada", or the "Company")

i3 Canada Ltd YE 2020 Reserves

i3 Energy plc (AIM:I3E) (TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, is pleased to announce the 2020 year-end reserves for its subsidiary i3 Energy Canada Ltd. i3's independent reserve report (the "GLJ report") was prepared by GLJ Ltd. ("GLJ") in accordance with standards contained in the Canadian Oil and Gas Handbook (COGEH) and National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101") with an effective date of 31/12/20.

Highlights

-- The Before-tax Net Present Value of cash flows attributable to the reserves, discounted at 10%, is USD 97mm for the Proved Reserves ("1P") and USD 183mm for the Proved plus Probable Reserves ("2P"), indicative of the numerous economic development opportunities in the Company's portfolio.

-- Proved Producing Reserves are 17.51 million barrels of oil equivalent ("mmboe"), representing 55% of all 1P Reserves and Proved plus Probable Producing Reserves are 22.83 mmboe representing 43% of all 2P Reserves, indicative of relatively low risk reserves.

-- Top-tier, low-decline asset base as exhibited by projected first year declines of 13% on a 2P basis. Actual observed declines since i3's acquisition of these assets are significantly below this projection.

-- The Company's Proved plus Probable Reserves are comprised of 62% natural gas and 38% oil and natural gas liquids ("NGLs").

-- The forecast commodity pricing assumed by GLJ as at 31/12/20 is materially below that used for the 30/6/20 evaluation and today's forward strip price curve. The change in Proved Producing reserves of 1.8 mmboe from 30/6/20 to 31/12/2020 is principally due to the 1.7 mmboe produced across that 6-month period.

The tables below outline GLJ's estimates of i3's reserves at 31/12/20.

 
                     I3 YE 2020 - Reserves Volumes 
 Reserves Category       Company Working Interest Reserves 
                        ----------------------------------------------- 
                         Oil     NGL      Gas       Total    Liquids 
                          Mbbl    Mbbl     MMcf      Mboe     Weighting 
----------------------  ------  -------  --------  -------  ----------- 
 Proved Producing        2,365   4,355    64,733    17.509   38% 
 Proved Non-Producing    375     393      14,085    3,115    25% 
 Proved Undeveloped      1,640   2,215    43,570    11,117   35% 
----------------------  ------  -------  --------  -------  ----------- 
 Total Proved            4,380   6,963    122,388   31,741   36% 
----------------------  ------  -------  --------  -------  ----------- 
 Probable Producing      814     1,317    19,122    5,318    40% 
----------------------  ------  -------  --------  -------  ----------- 
 Total Probable          4,397   4,592    74,005    21,323   42% 
----------------------  ------  -------  --------  -------  ----------- 
 Proved plus Probable    8,776   11,555   196,393   53,063   38% 
 
 
                          I3 YE 2020 - Reserves Volumes and Values 
 Reserves Category                    Company Net Reserves                Pre-Tax   Post-Tax 
                                                                           NPV       NPV 
                                                                            Discount Rate 
                                                                                  10% 
----------------------  ------  -------  --------  -------  ----------- 
                          Oil     NGL       Gas     Total     Liquids 
                          Mbbl    Mbbl      MMcf     Mboe     Weighting     $M         $M 
----------------------  ------  -------  --------  -------  -----------  --------  --------- 
 Proved Producing        2,194    3,760    62,212   16,323          36%    62,886     52,217 
 Proved Non-Producing      332      322    13,007    2,822          23%    11,550      8,868 
 Proved Undeveloped      1,570    2,022    41,468   10,503          34%    22,175     14,265 
----------------------  ------  -------  --------  -------  -----------  --------  --------- 
 Total Proved            4,096    6,104   116,687   29,648          34%    96,612     75,350 
 Probable Producing        724    1,195    18,610    5,021          38%    20,112     16,060 
----------------------  ------  -------  --------  -------  -----------  --------  --------- 
 Total Probable          4,048    4,079    70,622   19,897          41%    86,212     63,579 
----------------------  ------  -------  --------  -------  -----------  --------  --------- 
 Proved plus Probable    8,144   10,183   187,309   49,545          37%   182,824    138,929 
----------------------  ------  -------  --------  -------  -----------  --------  --------- 
 

Notes:

   (1)   The Company is not in a tax paying position due to Canadian tax loss pools. 

(2) "Net" reserves mean the Company's working interest share after deduction of royalty obligations.

   (3)   USD/CAD of 0.826 used to convert GLJ's reported Net Present Values from CAD to US. 

Forecast Prices Used in Estimates

GLJ has employed the 3 Consultants Average ("3CA") forecast prices in the GLJ Report, being the average of the forecasts of GLJ, McDaniel & Associates Consultants Ltd and Sproule Associates Limited. The 3CA forecast prices, exchange rate and inflation (2% post 2035) assumptions as at 31/12/20 are tabulated below.

 
          Canadian     Western     Alberta      Pentanes        Butanes       Propanes     Inflation        Exchange 
             Light      Canada      AECO-C          Plus                                        Rate            Rate 
             Sweet      Select 
======  ==========  ==========  ==========  ============  =============  =============  ============  ============== 
             40deg    WCS 20.5        Spot           FOB   FOB Edmonton   FOB Edmonton 
               API         API                  Edmonton 
  Year   (CAD/bbl)   (CAD/bbl)   CAD/mmbtu     (CAD/bbl)      (CAD/bbl)      (CAD/bbl)          (% /       (USD/CAD) 
                                                                                               year) 
------  ----------  ----------  ----------  ------------  -------------  -------------  ------------  -------------- 
  2021       55.76       44.63        2.78         59.24          26.36          18.18           0.0          0.7683 
  2022       59.89       48.18        2.70         63.19          32.85          21.91           1.3          0.7650 
  2023       63.48       52.10        2.61         67.34          39.20          24.57           2.0          0.7633 
  2024       65.76       54.10        2.65         69.77          40.65          25.47           2.0          0.7633 
  2025       67.13       55.19        2.70         71.18          41.50          26.00           2.0          0.7633 
  2026       68.53       56.29        2.76         72.61          42.36          26.54           2.0          0.7633 
  2027       69.95       57.42        2.81         74.07          43.24          27.09           2.0          0.7633 
  2028       71.40       58.57        2.86         75.56          44.14          27.65           2.0          0.7633 
  2029       72.88       59.74        2.92         77.08          45.06          28.23           2.0          0.7633 
  2030       74.34       60.93        2.98         78.62          45.96          28.79           2.0          0.7633 
  2031       75.83       62.15        3.04         80.19          46.88          29.37           2.0          0.7633 
  2032       77.34       63.39        3.10         81.80          47.82          29.96           2.0          0.7633 
  2033       78.89       64.66        3.16         83.43          48.78          30.55           2.0          0.7633 
  2034       80.47       65.95        3.23         85.10          49.75          31.16           2.0          0.7633 
  2035       82.08       67.28        3.29         86.80          50.75          31.79           2.0          0.7633 
 
 
 

Majid Shafiq, CEO of I3 Energy plc, commented:

"With Producing Reserves representing a relatively high proportion of Proved and Probable reserves and performance even better than the predicted top tier decline rates, this demonstrates the low risk, high quality nature of our portfolio".

Notes:

Reserves estimates have been prepared by GLJ in accordance with standards contained in the Canadian Oil and Gas Evaluation (COGE) Handbook.

Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves. If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal to or exceed the estimate.

Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated Proved plus Probable (2P) reserves. When probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal to or exceed the 2P estimate.

Undeveloped reserves are those reserves expected to be recovered from known accumulations where a significant expenditure (for example, when compared to the cost of drilling a well) is required to render them capable of production. They must fully meet the requirements of the reserves category (for example proved or probable) to which they are assigned.

Qualified Person's Statement

In accordance with the AIM Note for Mining and Oil and Gas Companies, i3 discloses that Majid Shafiq is the qualified person who has reviewed the technical information contained in this document. He graduated with a Master's Degree in Petroleum Engineering from Heriot-Watt University in 1988 and is a member of the Society of Petroleum Engineers. Majid Shafiq consents to the inclusion of the information in the form and context in which it appears.

Enquiries:

 
   i3 Energy plc 
   Majid Shafiq (CEO) / Graham Heath       c/o Camarco 
    (CFO)                                   Tel: +44 (0) 203 781 8331 
   WH Ireland Limited (Nomad and Joint 
    Broker) 
   James Joyce, James Sinclair-Ford        Tel: +44 (0) 207 220 1666 
   Canaccord Genuity Limited (Joint 
    Broker) 
   Henry Fitzgerald- O'Connor, James       Tel: +44 (0) 207 523 8000 
    Asensio 
   Tennyson Securities (Joint Broker)      Tel: +44 (0) 207 186 9030 
    Peter Krens 
   Camarco 
    Owen Roberts, James Crothers, Violet     Tel: +44 (0) 203 781 8331 
    Wilson 
 

Notes to Editors:

i3 Energy is an oil and gas Company with a low cost, diversified, growing production base in Canada's most prolific hydrocarbon region, the Western Canadian Sedimentary Basin and appraisal assets in the North Sea with significant upside.

The Company is well positioned to deliver future growth through the optimisation of its existing 100% owned asset base and the acquisition of long life, low decline conventional production assets.

i3 is dedicated to responsible corporate practices and the environment, and places high value on adhering to strong Environmental, Social and Governance ("ESG") practices. i3 is proud of its performance to date as a responsible steward of the environment, people, and capital management. The Company is committed to maintaining an ESG strategy, which has broader implications to long-term value creation, as these benefits extend beyond regulatory requirements.

i3 Energy is listed on the AIM market of the London Stock Exchange under the symbol I3E and on the Toronto Stock Exchange under the symbol ITE. For further information on i3 Energy please visit https://i3.energy/

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

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June 17, 2021 02:00 ET (06:00 GMT)

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