REG - i3 Energy PLC - Reduction of Capital - Update

I3 EnergyAnnouncement

02/10/2023 07:15

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RNS Number : 2678O  i3 Energy PLC  02 October 2023

2 October 2023

i3 Energy plc

("i3", "i3 Energy", or the "Company")

Reduction of Capital - Update

i3 Energy PLC (AIM:I3E) (TSX:ITE), an independent oil and gas company with
assets and operations in the UK and Canada, announces the following update
to its proposed reduction of capital.

Proposed Capital Reduction

At the AGM held on 30 June 2023 the shareholders approved a resolution to
allow the cancellation of the Company's share premium account (the "Capital
Reduction).  The proposed Capital Reduction is intended to increase retained
earnings by an amount equal to the amount standing to the credit of the
Company's share premium account in order to create further distributable
reserves in the Company to facilitate the future payment of dividends (in cash
or otherwise) to Shareholders, where justified by the profits of the Company,
or to allow the redemption or buy-back of the Company's shares (or other
distributions to Shareholders).

The proposed cancellation of the Company's share premium account is subject to
the scrutiny of, and confirmation by, the High Court of England and Wales (the
"High Court") which will take due account of the protection of creditors.
Subject to that confirmation and registration by the Registrar of Companies in
England and Wales of the order of the High Court, the Capital Reduction is
expected to take effect as per the timetable below.

The Board anticipates that the cancellation of the Company's share premium
account will result in the creation of further distributable reserves.
However, this is subject to: (i) there being no materially negative change in
the financial position or prospects of the Company; and (ii) any provision
that the court requires the Company to make for the protection of its
creditors (although the Board does not expect any undertakings or similar
measures to be required).  This will give the Company the maximum flexibility
to consider the payment of dividends and otherwise return value to the
Shareholders, should the Board consider it appropriate.  It should however be
noted that if the Company is required to give undertakings to the High Court,
this may delay the Company's ability to pay dividends and otherwise return
value to Shareholders.

Following the implementation of the Capital Reduction, there will be no change
in the nominal value of the Company's shares or the number of shares in
issue.  The Capital Reduction in itself will not involve any distribution or
repayment of share premium by the Company and will not reduce the underlying
net assets of the Company.

The Directors reserve the right to abandon or discontinue any application to
the High Court for confirmation of the Capital Reduction if the Directors
believe that the terms required to obtain confirmation are unsatisfactory to
the Company or if, as the result of a material unforeseen event, the Directors
consider that to continue with the Capital Reduction would be inappropriate or
inadvisable.

Timetable of Principal Events

The expected timetable of principal events with respect to the Capital
Reduction are as follows:

 PRINCIPAL EVENT                                                             DATE
 Date for the directions hearing for the High Court to consider the Capital  17 October 2023
 Reduction application
 Date for the hearing by the High Court to confirm the Capital Reduction     7 November 2023
 Expected date that the Capital Reduction becomes effective                  7 or 8 November 2023

 

Enquiries:

 i3 Energy plc                                   c/o Camarco

 Majid Shafiq (CEO)                              Tel: +44 (0) 203 781 8338

 WH Ireland Limited (Nomad and Joint Broker)

 James Joyce, Darshan Patel                      Tel: +44 (0) 207 220 1666

 Tennyson Securities (Joint Broker)

 Peter Krens                                     Tel: +44 (0) 207 186 9030

 Stifel Nicolaus Europe Limited (Joint Broker)

 Ashton Clanfield, Callum Stewart                Tel: +44 (0) 20 7710 7600

 Camarco

 Georgia Edmonds, Violet Wilson, Sam Morris      Tel: +44 (0) 203 781 8338

 Notes to Editors:

i3 Energy is an oil and gas Company with a low cost, diversified, growing
production base in Canada's most prolific hydrocarbon region, the Western
Canadian Sedimentary Basin and appraisal assets in the North Sea with
significant upside.

The Company is well positioned to deliver future growth through the
optimisation of its existing 100% owned asset base and the acquisition of long
life, low decline conventional production assets.

i3 is dedicated to responsible corporate practices and the environment, and
places high value on adhering to strong Environmental, Social and Governance
("ESG") practices. i3 is proud of its performance to date as a responsible
steward of the environment, people, and capital management. The Company is
committed to maintaining an ESG strategy, which has broader implications for
long-term value creation, as these benefits extend beyond regulatory
requirements.

i3 Energy is listed on the AIM market of the London Stock Exchange under the
symbol I3E and on the Toronto Stock Exchange under the symbol ITE. For
further information on i3 Energy please visit  https://i3.energy/
(https://i3.energy/) .

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

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