i3 Energy PLC (LON:i3E) has confirmed the closing of its transaction to acquire the Canadian assets of Toscana Energy Income Corporation, which further establishes the group’s production business in North America.
Production from the Toscana assets along with assets acquired from Gain Energy, in September, averaged a combined 9,407 barrels oil equivalent per day for the month of October.
Additionally, the company noted that the Toscana assets come with C$128mln of accrued tax losses, which it said will support tax-efficient income for several years.
i3 told investors it expects to declare and pay its first dividend in the first quarter of 2021 now that it production business in place.
“We are delighted to announce the closing of the Toscana acquisition and with it the imminent listing of i3 on the TSX,” said i£ Energy chief executive Majid Shafiq in a statement.
“This and the acquisition of the Gain assets in September completes the first phase of our Canadian business plan. We will now look to fully integrate and optimise our operations to maximise margins in a strengthening Canadian gas price environment with current AECO2 strip pricing in excess of CAD$3.0/MMBtu3 out to June 2021 (a price last seen in 2016), whilst continuing with our plan to build on the platform with synergistic and accretive M&A activity,” he added.
The company’s shares are due to start trading in Toronto from November 6, under the ticker symbol ‘ITE’.