i3 Energy’s (LON: I3E) Wapiti acquisition delivers better than expected production

Highlights 

• I3 Energy’s Wapiti acquisition production improved to 471 boepd in August, up from 230 boepd at the time of acquisition.
• The Martin Hills Clearwater wells produced an aggregate average of 238 bopd in the last week of August.
• Wapiti Elmworth’s two oil-weighted wells are expected to increase i3's production by approximately 175 boepd initially with the recovery of full investment in 1.3 years.

AIM-listed and independent oil and gas company i3 Energy Plc (LON: I3E) (TSX:ITE) reported better than expected production from its recently completed Wapiti acquisition. The budding energy company has also provided positive updates at its Martin Hills Clearwater and Wapiti Elmworth drilling activities.

Wapiti production acquisition

i3 Energy’s production at Wapiti rose by over 200% in August, averaging 471 barrels of oil equivalent per day (boepd), up from 230 boepd at the time of acquisition. The production gains were due to well reactivations and compression. Wapiti acquisition was completed on 20 July with an effective date of 1 April 2021.

The production numbers are much better than expected, as I3 Energy had previously expected production to average around 300 boepd following the well reactivations.

Related Article: I3 Energy completes Central Alberta strategic asset acquisition

Martin Hills Clearwater farm-in drilling

i3 Energy’s Martin Hills Clearwater 01-12-075-26W4 and 02-12-075-26W4 well has started flowing sales volume following drilling and clean-up activities. The two wells have an aggregate average production of 238 barrels of oil per day (bopd) for the period between 23 August and 31 August this year.

The company holds a 50 per cent working interest in the two Martin Hills wells and has the option to participate in seven additional wells under the associated farm-in agreement, which was finalised on 5 May. Further, at least four of the additional seven wells are scheduled to be spud by 31 March 2022.

Wapiti Elmworth drilling

The energy company updated that Wapiti Elmworth’s second well, 08-17-71-10W6 completed its drilling on time and well within budget.

The well reached a true vertical depth of 1,341 meters. The total measured depth was 3,346 meters, which included a 1,776 meters horizontal section in the Dunvegan formation. i3 Energy met an excellent reservoir with 10 to 15 per cent porosity in the horizontal section, with strong gas flows and oil staining. 

08-17-71-10W6 was spud on 9 August, and its rig was released on 21 August after completing the drilling on time. Stimulation, production tie-in, and other related operations are expected to begin soon for both 08-17-71-10W6 and the first well 09-17-071-10W6.

The two wells are likely to increase i3 Energy’s production by about 175 boepd initially and would be able to return the full investment in 1.3 years, based on current commodity strip pricing.

Majid Shafiq, i3 Energy Plc’s CEO, made the following statement after reporting its production results and operational update:

Road ahead

i3 Energy’s production results indicate that the energy firm’s acquisition and drilling activities continue to yield robust outcomes. The company’s share has netted a strong return of over 132 per cent in the past year and with positive developments like this, it is likely to offer better return to its shareholders in the future as well.