Oil firm i3 Energy is in talks over a potential farm out of stakes in its Serenity discovery in the outer Moray Firth.
London-listed i3 said today that terms were being negotiated and that it would update the market when an agreement is reached.
Announcing the discovery a year ago, i3 said the well results supported its pre-drill estimates of 197 million barrels of oil in place, sending its shares up 60%.
It believes Serenity is connected to the undeveloped Tain field, operated by Repsol Sinopec Resources UK.
The company, headquartered in Westhill, near Aberdeen, also said it “envisaged” paying its maiden dividend in the first quarter of 2021.
It aims to pay out up to 30% of free cashflow as a dividend to shareholders.
Based on the current share price, i3 anticipates a dividend yield in excess of 10% on an annual basis.
Shares were up 8.03% to 4.38p at 11am.
In addition, i3 expects to start trading on the Toronto Stock Exchange on November 6, giving the company dual-listed status.
The firm has completed several acquisitions in Canada this year, including that of Toscana Energy on Friday and Gain Energy last month.
Production from Gain and Toscana assets in October averaged 9,407 barrels of oil equivalent per day.
Majid Shafiq, chief executive of i3 Energy, said: “We are delighted to announce the closing of the Toscana acquisition and with it the imminent listing of i3 on the TSX.
“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.”
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