07:47 AM EDT, 03/26/2024 (MT Newswires) -- i3 Energy plc ( ITEEF ) , an independent oil and gas company with assets and operations in the UK and Canada, earlier Tuesday said that it plans to reduce share capital to ensure there are sufficient distributable reserves to facilitate dividend payments in the long term.

The capital reduction process is not required to facilitate the payment of the next quarterly dividend, the company said.

The company has proposed that the amount standing to the credit of the transition reserve of about 148.5 million British pounds is capitalized through a bonus issue of newly created capital reduction shares with a nominal value of 0.0001 pounds and a share premium of about 0.1234 pounds on each share.

The company also proposed that the newly created capital reduction shares be canceled via a court-approved reduction of capital; and about 148.4 million pounds, being the amount standing to the credit of the company's share premium account following the capital reduction bonus Issue be canceled.

The company has scheduled an annual general meeting of shareholders on April 15. Following shareholder approval at the meeting, the proposed capital reduction would require court approval, which is expected to occur by the end of May.

The company's shares, which gained over 9% in Canada yesterday, fell 1.9% as at 11:21 am GMT in London Stock Exchange trading on Tuesday.