Business Model
Our executive team targets production and development assets that present long-term, low-decline cash-generative capability, deliverable future upside potential, and manageable decommissioning exposure. We are focused on strategic fit, and where we believe portfolios will be more valuable in our hands than others. The company only pursues assets in safe jurisdictions that are strictly regulated, well-defined and well-understood.
i3 strives to be a low-cost acquirer of production assets and portfolios which also contain meaningful upside from which future value can be extracted. Since its 2020 entry into Canada during the depths of the COVID-19 pandemic, the company has successfully employed the following strategy:
Acquire
iTarget long-life and low-cost PDP assets with robust PUD inventories, with a focus on distressed, overleveraged or non-core asset packages of high API/BTU production streams with low sustaining capex and decom exposure
Rationalise
Rationalise portfolio to extract value from non-synergisitic assets for redeployment into strategic consolidation at i3’s core plays
Dividend + Reinvest
Issue annual dividend up to 30% of free cash flow, reinvesting residual in PDP assets or low-cost, organic PUD and 2P reserves development within already-held portfolio
Produce
Optimize and streamline field operations to increase efficiency and import per boe netbacks; actively participate in non-operated partnerships and influence value preservation
Cycle-bottom Acquisition | Acquire PDP at <3.0x N0I, obtaining PUD/2P reserves at very low cost |
Cycle-top Drilling | Drill commodity-driven PUD/2P inventory; hedge or sell fresh production into strength |
Value Maximization | All-weather portfolio management that maximizes cycle and inventory to create shareholder value |
In the UKNS, i3 is focused on maximising near-term shareholder value through the farm-down and further appraisal of its Serenity oil discovery for which the company carries a P50 STOIIP of 197 Mbbls. Additionally, i3 continues to seek new ventures at the appraisal, development, and production phase, considering each potential opportunity in terms of relative technical and commercial merits within the context of the overall objectives of the company.
i3 is highly commercial and considers acquisitions, farm-ins, farm-outs, exchanges of interests, divestments, and organic development to drive shareholder returns. i3 is committed to returning value to shareholders through the deployment of its growth model, by way of its monthly dividend distribution, and through its intention to monetize assets and return capital as opportunities present themselves.