REG - i3 Energy PLC - Serenity Farm-in Agreement Execution

I3 EnergyAnnouncement

21/04/2022 07:00

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RNS Number : 8359I  i3 Energy PLC  21 April 2022

21 April 2022

i3 Energy plc

("i3", "i3 Energy", or the "Company")

Serenity Farm-in Agreement Execution

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)               Tel: +44 (0) 207 186 9030

     Peter Krens

     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/
(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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