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.
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.
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.”