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i3 Energy Plc to rejig balance sheet as it confirms maiden dividend

“We are close to entering the final stages of the process to allow the declaration and payment of our maiden dividend,” said Majid Shafiq.

i3 Energy Plc () told investors it will pay a maiden dividend but first needs to rejig its balance sheet by reducing share capital.

In a stock market statement, the North Sea and Canada small-cap oiler said it allocated £1.16mln (C$2mln) to pay dividends, in-line with a pledge to distribute at least 20% of free cash flow back to shareholders.

“The company can only pay a dividend out of distributable profits and i3 currently has retained losses. i3 is expecting to effect a reduction of share capital to create distributable reserves to offset the losses and create surplus profits,” the company said.

“i3 expects to shortly distribute a special resolution and circular to its shareholders which will specify the exact amount of the proposed reduction in share capital and explain the background and reasons for the reduction.”

Additionally, the company noted that in Canada the process for regulatory approval and First Nation consultations are ongoing as it seeks to tie-in the successful Noel gas well (tested in December).

The company said the project is progressing on-time and on-budget. Construction is due to start once access conditions allow.

It highlighted that the well is expected to come online at around 500 barrels oil equivalent per day.

“Our Canadian production assets continue to perform well, and we are actively advancing projects to maintain and grow production from our current portfolio and are evaluating a number of production acquisition opportunities,” said Majid Shafiq, i3 chief executive.

“In the UK, negotiations with counterparties for a farm-out of Serenity appraisal drilling continue to be advanced.”

Read More: i3 Energy Plc to rejig balance sheet as it confirms maiden dividend

2021-03-31 03:00:00

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