(NewsDirect)
i3 Energy PLC chief executive Majid Shafiqtells Proactive's Stephen Gunnioin the sale of a portion of thecompany's royalty assets significantly enhances the company'sfinancial metrics.
These assets,described as non-core, consisted of 388 barrels per day of oilequivalent, generating a forecasted $3.6 million in cash flowannually. Despite their low production and cash flow impact, theyfetched $25 million.
Shafiqhighlighted that this sale accelerates value realization, effectivelytrading less than 2% of last year's production for about 14% ofthe company's market cap. The transaction has zeroed i3Energy's net debt and created a working capital surplus, enablingaccess to a fully undrawn $75 million Canadian debt facility.
The proceeds are earmarked for businessgrowth in Canada, potentially through drilling high-return oil and gaswells or pursuing mergers and acquisitions. This aligns with i3Energy's strategy of maximizing shareholder value through tacticalasset management and sensible acquisition and divestment.
The company retained its royalty positionin the strategically valuable Montney position at Simonette,anticipating substantial future gains from its high-potential oilwells.
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