- I3 Energy, an AIM-listed energy company, announced in an operational update that its Q2 production has improved over Q1, and it has completed drilling at its first well site in Marten Hills.
- The company reported its production in Q2 2021 rose to 9,142 boepd from 8,856 boepd reported in Q1 2021.
- I3 Energy announced the completion of drilling on its first well site at Marten Hills 01-12-075-26W4, on time and within the budget, on 30 June.
I3 Energy PLC (LON: I3E) (TSX: ITE), an AIM-listed independent energy company with assets and operations in the UK and Canada, has recorded an improvement in its second-quarter production and has successfully completed the drilling process in its first well in Marten Hills, Canada. The company revealed this in an operational update released on 2 July 2021.
Increase in Q2 production
The company reported that its Q2 2021 production averaged 9,142 barrels of oil equivalent per day (boepd). This was higher than the Q1 2021 production figure of 8,856 boepd, even though the Q2 figure included the impact of routine facility maintenance on third-party facilities.
The company also reported that its production output, since the Noel well started on 17 June, averaged at 9,353 boepd.
Completion of first Marten Hills well drilling
- In another key development, I3 Energy successfully completed the drilling of Marten Hills 01-12-075-26W4 well on 30 June.
- The well was spud on 15 June. The company drilled to a maximum depth of 630 meters, and its spud targeted the 25-meter-thick Clearwater C sandstone reservoir.
- The CEO of I3 Energy, Majid Shafiq, said the company was pleased with the outcome of the drilling operation at the site. Mr. Shafiq added that the reservoir intervals penetrated seemed to have excellent geological characteristics, and the company was awaiting the production results, which are expected to be announced later this month.
- The first well in the Marten Hills Clearwater reservoir has eight horizontal lateral sections, with a combined length of up to 13,057 meters. All laterals encountered clean upper shoreface sandstone, with a porosity of 24 per cent to 27 per cent. It also found evidence of oil during the drilling process, with oil shows on cuttings.
- Further, the operation was completed on time and within its budget.
- I3 Energy also announced it had now moved the oil rig onto the second well site of its drilling project at Marten Hills 02-12-075-26W4. Drilling at this site is expected to be completed by mid-July, while the production from both the wells is expected to start later in the month.
Share price performance
The stock price of I3 Energy’s rose sharply following the news. The company’s shares jumped by 10.93 per cent to GBX 14.98 on 2 July by 12:26 PM GMT+1.
The company’s stock price has peaked near the 52-week high of GBX 15.20 due to timely completion of the drilling, within the prescribed budget, at the first well site at Marten Hills and higher production output this quarter.
The company’s market cap stood at £97.53 million, while the stock has returned around 174 per cent year-to-date.