EASTLEIGH, UK / ACCESSWIRE / April 21, 2022 / i3 Energy plc (AIM:I3E) (TSX:ITE), an independent oil and gas company with assets and operations in the UK and Canada, is pleased to provide the following update.
Serenity Farmout
Further to the Company's announcement of 2 March 2022, i3 confirms that it has executed the Farm-in Agreement ("FIA") with Europa Oil & Gas Limited ("Europa") (company number 03093716) following Europa's completion of its equity fundraising to fund its share of the upcoming Serenity appraisal well.
Background
Under the terms of the FIA, Europa will acquire a 25% non-operated working interest ("WI") in a sub-area of UKCS Licence P.2358 Block 13/23c containing the Serenity discovery (the "New Serenity Block") by funding a 46.25% paying interest for one appraisal well on the field, whereafter i3 will retain a 75% operated WI in the New Serenity Block.
The well cost is estimated to be circa £14 million and Europa's 46.25% paying interest will be applied up to a capped gross well cost of £15 million. Any well costs exceeding £15 million will be paid by the companies in proportion to their respective working interests. Completion of the deal and transfer of the licence interest to Europa will be subject to the following principal conditions:
1. Europa funding an escrow account with their paying interest obligation.
2. Approval of the North Sea Transition Authority ("NSTA") to the creation of the New Serenity Block.
3. Consent of the NSTA to assignment of an interest in the Licence and New Serenity Block to Europa.
4. Approval of i3's Loan Note holders of the assignment of the Licence interest.
Following this farm-out i3 will retain a 100% WI in the remainder of Block 13/23c which contains the Minos High prospect and Liberator discovery.
Majid Shafiq, CEO of i3 Energy plc, commented:
"i3 is delighted to announce the execution of the farm-in agreement with Europa and we will now commence the detailed planning and permitting process for the Serenity appraisal well, which we now expect to spud in late Q3 this year."
END
Qualified Person's Statement
In accordance with the AIM Note for Mining and Oil and Gas Companies, i3 discloses that Majid Shafiq is the qualified person who has reviewed the technical information contained in this document. He has a Master's Degree in Petroleum Engineering from Heriot-Watt University and is a member of the Society of Petroleum Engineers. Majid Shafiq consents to the inclusion of the information in the form and context in which it appears.
Enquiries:
i3 Energy plc | |
Majid Shafiq (CEO) / Graham Heath (CFO) | c/o Camarco Tel: +44 (0) 203 781 8331 |
WH Ireland Limited (Nomad and Joint Broker) | |
James Joyce, Darshan Patel | Tel: +44 (0) 207 220 1666 |
Stifel Nicolaus Europe Limited (Joint Broker) | |
Ashton Clanfield, Callum Stewart | Tel: +44 (0) 207 710 7600 |
Tennyson Securities (Joint Broker) Peter Krens | Tel: +44 (0) 207 186 9030 |
Camarco Georgia Edmonds, James Crothers, Violet Wilson | Tel: +44 (0) 203 757 4986 |
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 n 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 to long-term value creation, as these benefits extend beyond regulatory requirements.
i3 Energy is listed on the AIM market of the London Stock Exchange. For further information on i3 Energy please visit https://i3.energy/
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
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SOURCE: i3 Energy PLC
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