i3 Energy shares fell 6.9% to 25.9p in late morning trading on Friday after the company announced a lowered FY 2022 net operating income forecast of $200 million compared to its previous expectation of $241 million.
The energy group attributed its lowered projection to volatile near-term commodity pricing.
i3 Energy reported a Q2 2022 average production of approximately 19,502 boedp, representing a 116% rise against Q1 2021 and an 8% growth from Q1 2022, despite drilling delays as a result of seasonal weather-related disruptions and maintenance shutdowns at third party facilities.
The firm highlighted average field sales estimates exited July over 20,000 boepd, with current field expectations of approximately 20,500 boepd.
i3 Energy confirmed seven wells drilled across Q2, with five operated and two non-operated and production testing currently underway.
The company also noted a 25% completed working interest farmout of the Serenity discovery to Europa Oil and Gas, with Europa reportedly financing 46.25% of the expense for the upcoming appraisal well, up to a gross capped well cost of £15 million.
The project is scheduled to spud in the mid-September 2022.
“The second quarter was another very busy period for i3. The Company managed to increase base production levels quarter on quarter, without any contribution from our Q2 drilling campaign, despite delays and operational challenges caused by expected seasonal wet weather conditions and maintenance shutdowns at third party facilities,” said i3 Energy CEO Majid Shafiq.
“The recently drilled wells from our Q2 campaign have been tied in post quarter end and will imminently commence making a material production contribution post clean-up.”
“Our expanded drilling campaign in Canada proceeds at pace and preparations for appraisal drilling on the Serenity field in the UK are on track for an expected spud in mid-September. We look forward to providing further updates to the market over the coming weeks.”
i3 Energy is set to pay its next monthly dividend of 0.1p per share on 2 September 2022.