i3 Energy plc announced the execution of a strategic acquisition in its core Simonette area, taking operatorship and doubling its position in a premium light oil asset in the Lower Montney. Upon completion, i3 Canada will control a 99% operated interest in the associated land base, which has a gross area of 64 km2. The acquisition of the Anegada Interest has an effective date of 1 April 2021, and closing is expected to occur in second quarter (subject to regulatory approval). The ROFR is being exercised by i3 at a cost of USD 4.2 million, subject to normal closing adjustments, and will be financed from the Company's existing cash resources. Gain Energy Ltd. (whose assets were entirely purchased by i3 in 2020) and Anegada acquired this acreage in December 2017 for USD 2.9 million, subsequently spending a total of USD 30.7 million to drill and complete three Lower Montney oil wells, a water disposal well, and to construct associated facilities and pipelines (for their collective 99% working interest). Of the three production wells, one currently produces circa 317 boepd gross and the other two are suspended. Post-acquisition and as Operator, i3 will bring the two suspended wells back onto production in July at a total estimated cost of USD 1.16 million (USD 0.58 million for each of i3's current and acquired Anegada Interest) by installing gas lift in one and repairing an electrical submersible pump in the other, resulting in an expected increase to i3's corporate production of 720 boepd (41% oil, 4% NGLs, 55% gas) and NTM NOI of USD 5.2 million; effectively increasing the Company's exposure to oil by 20% and expected NTM NOI by over 16%. The combined rate associated with the Anegada Interest for the three wells is estimated to be 430 boepd. The 2P reserves and associated valuation estimate for the Anegada Interest are 4.9 mmboe and USD 30.9 million, respectively, based on GLJ's YE 2020 reserves evaluation, reflecting the high-impact potential oil resource identified in the Lower Montney formation at South Simonette. With all three wells on production, the forecasted next twelve months net operating income for the Anegada Interest is estimated at USD 3.2 million. At a total cost to i3 of USD 4.78 million for the acquisition and two well reactivation in July, the Company is acquiring the Anegada Interest and reinstating production for 1.49x NTM forecasted NOI of USD 3.2 million, USD 11,111/boepd, and USD 0.95/boe (2P), materially below the averages since fourth quarter of 2020 for similar Western Canadian transactions of 4.53x NTM NOI, USD 32,067/boepd, and USD 5.61/boe. For i3's already-owned 49.5% South Simonette interest (and incremental to i3's current share of production from the existing producing well) the reactivation of the two wells is estimated to increase i3's production and by 290 boepd and NTM NOI by USD 2.0mm. The Anegada Interest has a LLR of 46.1.