i3 Energy plc (I3E) (ITE), an independent oil and gas company with assets and operations in the UK and Canada, announces the following update.
Marten Hills Clearwater Drilling
Well completion, production equipment installation and tie-in operations have been completed for wells 01-12-075-26W4 and 02-12-075-26W4. Eight horizontal lateral legs (totalling 13,057m in the 01-12 well and 12,644m in the 02-12 well, at a maximum true vertical depth of 630m) were drilled from each wellbore and encountered a clean upper shoreface sandstone, with porosities ranging from 24% to 27%, and oil was evidenced throughout via oil shows on cuttings. The wells are now on production and flowing back drilling fluid. This clean-up process is expected to take approximately three to four weeks, after which the market will be updated on initial stabilised oil flow rates.
i3 Energy owns a 50% working interest in these wells and has the option under the associated farm-in agreement, previously announced on 5 May 2021, to participate in an additional 7 wells, at least 4 of which will be spud by 31 March 2022, which would see i3 earn 11.5 net sections of land (circa 29.4 km2), in the Marten Hills, Cadotte and West Dawson areas of the Clearwater play.
Wapiti Production Acquisition
Announced 30 June 2021, the Company has now completed the Wapiti production acquisition with a 1 April 2021 effective date. These assets currently produce 230 boe/d and i3 intends to conduct six well reactivations to bring Next Twelve Months ("NTM") production to an estimated 310 boe/d, resulting in a total acquisition and capital cost of USD 0.4mm, which translates to only 0.56x expected NTM net operating income (revenue minus royalties, opex, transportation and processing).
Wapiti Elmworth Drilling
Well 09-17-071-10W6 in i3's Elmworth Wapiti acreage was spud on 27 July 2021. The Company will be drilling two wells with a partner at a net cost of USD 2.1mm. Operations are planned to conclude in early Q3 2021. These oil-weighted wells are expected to initially increase i3's production by approximately 175 boe/d and are estimated to return the full investment in 1.3 years based on current commodity strip pricing.
Majid Shafiq, CEO of i3 Energy plc, commented:
"We are very pleased to have successfully concluded drilling, completion and tie-in operations on the first two wells in the Company's Marten Hills Clearwater acreage, on time and on budget. Operations were performed very efficiently, and the experience will assist greatly in the programming of the second phase of drilling on this acreage. These Marten Hills and Wapiti wells are expected to add very profitable incremental production and cash-flow to the Company's portfolio. We now look forward to our next drilling program in Wapiti Elmworth."