i3 Energy PLC Announces CAD 75 Million RBL & Settlement of Existing Loan

Establishment of a CAD 75 Million Reserve-Based Credit Facility and Settlement of Existing Loan Facility

EASTLEIGH, UK / ACCESSWIRE / March 25, 2024 / i3 Energy plc (AIM:I3E)(TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, is pleased to announce the successful establishment of a reserve-based lending facility (the "Credit Facility"). The new Credit Facility marks a significant step in transitioning i3's capital structure, enhancing the Company's financial flexibility through improved liquidity and enabling acceleration of its growth and income-based business plan.

Highlights:

· New Credit Facility: A new CAD 75 million reserve-based senior secured credit facility with a Canadian chartered bank, comprised of a CAD 55 million revolving facility and a CAD 20 million operating loan facility.

· Settlement of Existing Loan Facility: Repayment of approximately CAD 57 million, representing the outstanding balance of i3 Energy's existing CAD 75 million loan facility (the "Loan") with Trafigura Canada Ltd., a subsidiary of Trafigura Pte Ltd ("Trafigura").

· Removal of Amortisation Schedule: The new Credit Facility, unlike the Loan, is non-amortising and releases CAD 25 million per annum, which the Company will deploy in its production growth initiatives.

· Pro Forma Positioning: An estimated year-end 2023 net debt of approximately USD 23 million (CAD 30.5 million) (unaudited), together with forecast cash flow, positions the Company with significant liquidity to contribute to its growth and income strategies.

Majid Shafiq, CEO of i3 Energy plc, commented:

"We are very pleased to have re-financed our existing Loan with a traditional reserve-based lending facility provided by a major Canadian chartered bank with a long history of financing the country's oil and gas industry. The non-amortising structure of the facility has an immediate benefit in increasing liquidity, which we can deploy in high return growth initiatives. This is a very positive validation of the strength of our underlying portfolio, and we look forward to building our new financial relationship in a mutually beneficial manner as we expand and grow our Canadian operations.