UK's I3 Announces 2nd Canadian Takeover

UK-listed I3 Energy said on July 6 it had reached a binding agreement to acquire all petroleum and infrastructure assets held by Canada's Gain Energy, a privately-held producer active in the Western Canadian Sedimentary Basin (WCSB), for C$80mn ($59mn).

The move comes after the North Sea-focused firm cut a smaller deal to buy Canada's Toscana Energy Income Corp in late March for C$3.95mn. Toscana also operates in the WCSB.

The assets I3 is buying from Gain yielded 11,020 barrels of oil equivalent (boe)/day last year and generated $34mn in core earnings (Ebitda). Their proven and probable reserves are estimated at 69.4mn boe. I3 will also take control of Gain's Weyburn carbon-capture and storage plant – the fourth largest of its kind in the world.

I3 said its shares would remain suspended at the London stock exchange until a readmission document is completed that provides more details of both the Gain and Toscana deals. The company is developing the Liberator and Serenity oilfields in the North Sea. Liberator is due to start up later this year and flow 20,000 b/d of crude.