i3 Energy PLC will drill two oil wells in its western Canadian Wapiti Elmworth acreage.
The wells are expected to spud in July and are anticipated to finish early third-quarter 2021. The wells should increase i3's production by about 175 boe/d and are estimated to return the full investment in 1.3 years based on current commodity strip pricing.
i3 entered a letter of intent to acquire 230 boe/d of production and intends to conduct six reactivations to bring production in Wapiti to about 310 boe/d at a total acquisition and capital cost of $410,000. Acquisition is expected to complete in second-quarter 2021.
Canadian acquisitions and drilling initiatives announced during first-half 2021 (including the two above) are estimated to increase i3's net operating income to about $44 million, a 42% increase over the previous guidance (which excluded the new acquisitions). Production will grow to about 10,000 boe/d.
i3 also acquired South Simonette Lower Montney properties from Anegada Oil Corp. The properties will produce over 18,000 boe/d. Redevelopment options include secondary recovery and infill drilling. i3 is operator at South Simonette (99%).
