i3 Energy PLC Announces Interim Report and Dividend Declaration - Seite 2

• Acquired circa 8,400 boepd (51% oil and NGLs) of low decline production from Cenovus Energy Inc, located within i3's Central Alberta core area, for a total consideration of CAD65 million (US$53.7 million). The assets were acquired on excellent metrics of 1.73x next twelve months cashflow, US$6,381/boepd and US$0.68/boe of 2P reserves and contain 79.5 MMboe of 2P reserves with an NPV₁₀ of US$193 million as at 1 April 2021, an inventory of greater than 140 net drilling locations, 80 net reactivation opportunities and 1,140 km network of operated pipelines, and key processing facilities. The transaction closed on 7 July 2021
• To fund the Cenovus acquisition on 7 July 2021, i3 raised approximately £40 million through the Placing and Subscription of 363,700,000 Placing Shares at the Issue Price of 11 pence per Placing Share, a 3% discount to the 15-day average closing price of 11.4 pence
• On 8 July 2021, i3 announced the declaration of its Maiden Special Dividend of 0.16 pence/share
• The Company commenced a hedging program which will result in approximately 50% of corporate volumes being hedged on a rolling 12 month forward looking basis. Currently through a combination of physical and financial swaps, circa 24% to 26% of forecast production is hedged through to the end of 2021, circa 22% hedged in Q1 2022 and 4.5% in Q2 2022
• Agreed terms with farm-in partners for the Serenity field appraisal drilling programme. We await confirmation of funding commitments from those potential farm-in partners before finalising and executing documentation

Majid Shafiq, CEO of i3 Energy plc, commented:

"2021 has been a transformational year for i3. We are now a substantial production company with a full cycle E&P portfolio containing multiple options to create and return value to our shareholders. We will continue our efforts in the remainder of 2021 and beyond to grow our production business and build the scale required to efficiently and effectively maximise and sustain value creation."

Post Period and Outlook
On 6 July 2021 the Registrar of Companies registered the cancellation of i3's share premium account. The £64.1 million balance of the Group's share premium will be transferred to retained earnings in the second half of 2021.

On 7 July 2021, i3 announced that it had reached a definitive agreement with Cenovus Energy Inc., a senior Canadian oil and gas producer, to acquire certain petroleum and infrastructure assets within i3's Central Alberta core area (the "Cenovus Assets"), for a total consideration of CAD65 million (US$53.7 million) (the "Acquisition"). The strategic Acquisition delivers extensive operational synergies, a large reserve base with multi-year development inventory and expected strong free cash flow. The Acquisition includes approximately 8,400 boepd (51% oil and NGLs) of predictable low-decline production, 79.5 MMboe of 2P reserves with an NPV₁₀ of US$193 million as at 1 April 2021 (inclusive of undiscounted asset retirement obligations ("ARO") of US$92 million, inflated at 2% and discounted at 10% for an NPV₁₀ ARO value of US$23 million), an inventory of greater than 140 net drilling locations and 80 net reactivation opportunities across approximately 212,000 net acres, an 1,140 km network of operated pipelines, and key processing facilities.