Spread the love

–News Direct–

i3 Energy PLC chief executive Majid Shafiq tells Proactive's Stephen Gunnioin the sale of a portion of the company's royalty assets significantly enhances the company's financial metrics.

These assets, described as non-core, consisted of 388 barrels per day of oil equivalent, generating a forecasted $3.6 million in cash flow annually. Despite their low production and cash flow impact, they fetched $25 million.

Shafiq highlighted that this sale accelerates value realization, effectively trading less than 2% of last year's production for about 14% of the company's market cap. The transaction has zeroed i3 Energy's net debt and created a working capital surplus, enabling access to a fully undrawn $75 million Canadian debt facility.

The proceeds are earmarked for business growth in Canada, potentially through drilling high-return oil and gas wells or pursuing mergers and acquisitions. This aligns with i3 Energy's strategy of maximizing shareholder value through tactical asset management and sensible acquisition and divestment.

The company retained its royalty position in the strategically valuable Montney position at Simonette, anticipating substantial future gains from its high-potential oil wells.

Contact Details

Proactive UK Ltd

+44 20 7989 0813

uk@proactiveinvestors.com

View source version on newsdirect.com: https://newsdirect.com/news/i3-energy-ceo-majid-shafiq-says-strategic-royalty-asset-sale-boosts-financial-metrics-920977505

i3 Energy PLC

comtex tracking

COMTEX_451070561/2655/2024-04-19T03:06:20

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Times World USA journalist was involved in the writing and production of this article.

Categories: Cloud PRWire