i3 Energy successfully completes acquisition of Gain Energy
unveiled to investors this morning that it has now completed its acquisition of all the petroleum and infrastructure assets of Gain Energy for CAD$80m.
The oil and gas raised around £29m last month, with a further £1m subject to regulatory approval, in order to complete its proposed acquisition of the Gain Energy assets in Canada.
The group previously entered into a binding purchase and sale agreement to acquire the Canadian energy firm which holds operations in the Western Canadian Sedimentary Basin.
Meanwhile, i3 Energy had also agreed to sell Gain's Saskatchewan portfolio to Harvard Resources Inc. for CAD$45m, around US$33m, immediately following the completion of its acquisition of Gain. The Company also confirmed the completion of this sale this morning.
Shares in i3 Energy have improved from lows of 3.6p during March to open at 5.2p following the announcement.
I3 said the diversification of its portfolio will add ‘a quality production base to provide internal free cash flow to grow the enlarged group and provide a near-term return to its shareholders.’
Prior to the end of Q1 2021, i3 anticipates that it will begin paying a dividend of between 20% and 30% of free cash flow annually, and then up to 40% as its Canadian business expands.
In a previous statement commenting on the group’s next steps, CEO, Majid Shafiq, said: “Following completion of the Gain Assets acquisition we will focus on production optimisation and cost reduction opportunities in this extensive asset base, in parallel with the ongoing execution of our strategy to rapidly grow production, targeting accretive, material, and complementary assets."
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