EASTLEIGH, ENGLAND/ACCESSWIRE/March 2, 2022/ i3 Energy plc (“i3”, “i3 Energy” or the “Company”) (LSE: I3E) (TSX: ITE), an independent oil and gas company with assets and operations in the United Kingdom and Canada, has pleased to provide the following update.
i3 notes the announcement made by Europa Oil & Gas Limited (“Europa”) (company number 03093716) regarding its agreement in principle to lease the company’s Serenity oil discovery in the UK North Sea and the equity financing it conducts to fund its lease obligations.
We can confirm that the Joint Operating Agreement and Indenture were essentially agreed between the parties to enable Europa to acquire a 25% working non-operated (“WI”) interest in a sub-area of the UKCS P. 2358 Block 13/23c license (containing the Serenity discovery) by funding a 46.25% paying interest for an appraisal well in the field, after which i3 will retain a 75% mined WI in the block .
The cost of the well is estimated at approximately £14 million and Europa’s 46.25% interest pay will be applied up to a gross well cost capped at £15 million. All well costs in excess of £15m will be paid by the companies on a pro rata basis of their respective working interests. The completion of the transaction and the transfer of the license interest to Europa will be subject to the following main conditions:
1. Europa funds an escrow account with their obligation to pay interest. We note that the closing of Europa’s equity financing is subject to the approval of its shareholders at an EGM.
2. Approval by the UK Oil and Gas Authority (“OGA”) of the creation of the Serenity area of Block 13/23c as a new block under License P.2358 (the “New Serenity Block”).
3. Consent of the OGA to the transfer of an interest in the license and the new Serenity block to Europa.
4. UK National Security and Investment Act Approval.
5. i3 Loan Noteholders Approval of Assignment of License Interest.
We will make a further announcement if Europa succeeds in its accelerated bookbuilding and when the settlement agreements for the farm-out are signed.
As previously announced, the Company has had discussions with a number of potential Serenity tenants and these further discussions are ongoing and may result in the contracting of additional working interests in the new Serenity Block.
Following this affermage, i3 will maintain a WI of 100% in the remainder of block 13/23c which contains the Minos High prospect and the Liberator discovery.
Majid Shafiq, CEO of i3 Energy plc, commented:
“i3 is delighted to announce this potential farm-out which, when completed, will facilitate the drilling of an appraisal well on the Serenity oil field later this year. This well will provide critical information that will help us size this potentially very large discovery and move it forward into development. Once the affermage is complete, we look forward to welcoming Europa as a partner in our joint venture and establishing a fruitful relationship between our two companies. »
Declaration of the qualified person
In accordance with the AIM Notice for Mining, Oil and Gas Companies, i3 discloses that Majid Shafiq is the Qualified Person who has reviewed the technical information contained herein. He holds 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.
i3 Energy plc
Majid Shafiq (CEO) / Graham Heath (CFO)
WH Ireland Limited (Nomad and co-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|
|Owen Roberts, James Crothers, Violet Wilson||Tel: +44 (0) 203 781 8331|
Notes to editors:
i3 Energy is an oil and gas company with a low-cost, diverse and growing production base in Canada’s most prolific hydrocarbon region, the Western Canada Sedimentary Basin and appraisal assets in the North Sea with significant growth potential.
The Company is well positioned to generate future growth through the optimization of its 100% owned asset base and the acquisition of long-lived, low-decline conventional generating assets.
i3 is dedicated to responsible business practices and the environment, and places great importance on adherence to strong environmental, social and governance (“ESG”) practices. i3 is proud of its performance to date as a responsible environmental, people and capital steward. The Company is committed to maintaining an ESG strategy, which has broader implications for long-term value creation, as these benefits go beyond regulatory requirements.
i3 Energy is listed on the AIM market of the London Stock Exchange. For more information on i3 Energy, please visit https://i3.energy/
The information contained in this press release is considered by the Company to be inside information within the meaning of the Market Abuse Regulation (EU) No. 596/2014.
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