Page 13 - NorthAmOil Week 44 2020

NorthAmOil PERFORMANCE NorthAmOil

i3 shares rise after UK junior

“envisages” maiden dividend

UK-CANADA SHARES in London-listed junior i3 rose on discussions with a counterparty regarding a
November 2 after the company said it “envis- potential farm-in to the Serenity discovery.”
aged” paying its maiden dividend in the first Terms for the deal are being negotiated, and i3
quarter of 2021. said it would report to the market once an agree-
The dividend will amount to up to 30% of free ment had been reached.
cash flow (FCF) and based on its current share In addition, i3 said it expected to begin trad-
price, i3 anticipates a dividend yield of over ing on the Toronto Stock Exchange on Novem-
10% on an annual basis. Its stock price rose by ber 6, giving it dual-listed status. The move
8% in the early hours of trading, to GBP0.0438 comes after it completed several acquisitions in
i3 completed several ($0.0565). Canada this year. In September it bought Gain
acquisitions in Canada i3 also said it was in talks to farm out a stake Energy and on October 30 it took over Toscana
this year. in the Serenity oil discovery in the UK’s outer Energy.
Moray Firth area. Production from the Gain and Toscana fields
i3 made the “transformational” oil discovery had averaged 9,407 barrels of oil equivalent per
in October last year, reporting that well results day (boepd) in October, i3 said.
had lived up to pre-drill estimates of nearly “We are delighted to announce the closing of
200mn barrels of oil in place (OIP). Its share the Toscana acquisition and with it the immi-
price soared 60% on the announcement, but has nent listing of i2 on the TSX,” CEO Majid Shafiq
shed far more value since the oil price collapse. said in a statement. “This and the acquisition of
The company has been searching for a the Gain assets in September completes the first
farm-in partner to take the project forward. In phase of our Canadian business plan.”
February it said that unnamed suitors were eval- i3 aims to fully integrate and optimise its
uating the opportunity. operations to maximise margins and recovering
In its latest update, i3 said it was “in gas prices in Canada, Shafiq said.™
POLICY

US extends handful of LNG

export authorisations

US THE government of US President Donald Christi terminals, as well as one for Sempra
Trump extended the terms of several long-term Energy’s proposed Port Arthur LNG facility.
LNG export authorisations until 2050 in two With the exception of Cove Point in Mary-
separate moves over the past two weeks. The land, these projects are concentrated on the Gulf
moves came as no surprise, following on from Coast, in Texas and Louisiana. Exports began in
the US Department of Energy’s (DoE) policy 2016, starting with the Sabine Pass project, and
statement in July that it would allow LNG export the US has since become one of the top three
authorisations to be extended. global exporters of LNG. Additional liquefaction
The first set of authorisations included Ven- capacity is under construction or proposed, and
ture Global LNG’s Calcasieu Pass and Plaquem- the country’s operating export capacity is pro-
ines facilities, NextDecade’s Rio Grande LNG, jected to increase by more than 50% by the end
Dominion Energy’s Cove Point LNG, several of 2025, according to the DoE.
separate stages at Freeport LNG and the third “DoE’s extended export term policy provides
stage of Cheniere Energy’s Corpus Christi LNG. assurances to industry and the millions of energy
Of these, only the earlier stages of Freeport, as jobs that it supports, that this administration val-
well as Cove Point LNG, are already in service, ues US LNG as a reliable and abundant resource,”
while the Calcasieu Pass terminal is currently said US Deputy Secretary Mark Menezes. “The
under construction. The remaining projects continued success of US LNG exports, especially
have yet to reach the final investment decision for power production in European and Asian
(FID) stage. markets, is helping our friends and allies meet
These approvals, announced on October 21, their global emissions reduction goals, while
were followed on October 28 by extensions for supporting US energy sector workers and infra-
Cheniere’s operational Sabine Pass and Corpus structure investments across the country.”™

Week 44 06•November•2020 www. NEWSBASE .com P13