North-east firm i3 Energy (LSE: I3E) is planning for a “very busy” 2022 with an “extensive” drilling programme on the cards.
It follows an “intense period” of technical work for the Canadian-focused company, which is based in Westhill, near Aberdeen.
To deliver on its ambitions, i3 has set aside a capital budget of $47 million (£36m).
It will go towards drilling 17 wells in Canada, 15 of which will be i3 operated.
The wells will be spudded across the company’s portfolio in Central Alberta, Marten Hills, Simonette, and Wapiti.
Incremental peak production is forecast to be up to 5,250 barrels of oil equivalent per day (boepd), with estimated average 2022 production above 20,000 boepd.
I3 has also committed to pay a minimum of £11.827 million in dividends during the course of 2022 equating to 1.05p per share – a 10.2% yield at the current share price.
Chief executive of i3 Majid Shafiq said: “Following an intense period of technical work to evaluate our portfolio in Canada, we look forward to a very busy 2022, when we will embark on an extensive drilling program of 17 gross wells, 15 of which i3 will be operating.
“The programme will target low risk, high return production, including wells in our Clearwater and Simonette Montney acreage designed to accelerate value creation in these key plays.
“All these wells have high rates of return and payback metrics equivalent to what we achieved on our major production acquisitions in Canada. We are also very pleased to be able to give clear guidance on the minimum level of cash dividends to be paid during 2022.”