i3 Energy PLC Operational Update (4989V)

TIDMI3E

RNS Number : 4989V

i3 Energy PLC

09 April 2019

9 April 2019

i3 Energy plc

("i3" or the "Company")

Operational Update

i3 Energy plc, an independent oil and gas company with assets and operations in the UK, is pleased to provide the following operational update for the appraisal and development of its 100% owned and operated Liberator field and Serenity prospect.

Highlights:

   --      Borgland Dolphin semi-submersible drilling rig contracted for Summer drilling campaign 
   --      Drilling due to commence between 15 July 2019 and 15 August 2019 

-- Drilling campaign expected to unlock the Company's asset base, with three planned wells to include the A3 appraisal well into Liberator's western extension, the Liberator Phase I L2 pilot well and the S1 appraisal well into the Serenity prospect

   --      Key equipment secured including wellheads and conductor pipe 
   --      Site survey completing this week 

Contract executed for the Borgland Dolphin drilling rig, key equipment secured

On 9 April 2019, i3 and Dolphin Drilling Limited ("Dolphin") executed a contract to utilize the Borgland Dolphin semi-submersible drilling rig for a 94-day programme which is due to commence between 15 July and 15 August 2019. This drilling commencement window has been agreed by the Company and Dolphin to ensure the availability of necessary equipment and to provide adequate preparation time to crew and mobilise the rig from its current mooring location in Norway.

i3 plans to drill the A3 appraisal well first, thereby fulfilling its licence obligation in Block 13/23c ("Liberator West"), followed by drilling the Liberator Phase I L2 pilot well and finally the S1 appraisal well into the Serenity prospect.

This drilling campaign is intended to:

i) de-risk and partially convert hydrocarbon volumes mapped in the western extension of the Liberator structure to reserves, which i3 estimates to contain 314 MMbbls of STOIIP;

ii) determine the placement of the second Phase I production well (either L4 or L1) planned to be concurrently brought on stream with the L2 production well in 2020 at potential combined rates of approximately 20,000 barrels of oil per day; and

iii) confirm that the Serenity structure, which the Company estimates could contain 197 MMbbls of STOIIP, is hydrocarbon bearing and that it is a material extension of the Tain discovery.

The Company expects that a successful Summer 2019 drilling campaign will unlock a proposed US$100 million senior credit facility to be used to deliver the Liberator Phase I development in 2020 and will also provide data to allow i3 to size and assess a standalone FPSO facility for a potentially enlarged Phase II development to evacuate both the Liberator and Serenity fields. With the successful appraisal and development of both Liberator and Serenity, management believe i3 could potentially produce more than 200 MMbbls from its current licences.

In addition to contracting the Borgland Dolphin, i3 has secured the necessary wellheads and conductor pipe for mid-July delivery to align with the start of its field operations and spud of the A3 appraisal well.

Site survey operations nearing completion

Over the course of March and early April, i3 has been conducting site survey operations using the Gardline vessel 'Ocean Observer' at the above drilling locations and along the potential pipeline route from Liberator to the intended host facility. Despite delays due to weather conditions, those operations are now substantially complete and have been conducted without incident. Sufficient data has been acquired to allow the company to proceed with permitting of the 2019 drilling programme and with engineering design for the Liberator Phase I development works.

Majid Shafiq, CEO of i3 Energy commented:

"The i3 team is excited to be working with Dolphin Drilling and to be using the Borgland Dolphin rig to conduct what we expect to be a transformational drilling campaign this summer. We continue to progress all key deliverables to bring Liberator to first oil and expect to provide updates on funding and finalization of offtake terms in due course."

ENDS

CONTACT DETAILS:

 
   i3 Energy plc 
   Majid Shafiq (CEO) / Graham Heath       c/o Camarco 
    (CFO)                                   Tel: [phone] 
 
     WH Ireland Limited (Nomad and Joint 
     Broker) 
   James Joyce, James Sinclair-Ford        Tel: [phone] 
   GMP FirstEnergy (Joint Broker) 
   Jonathan Wright                         Tel: [phone] 
   Canaccord Genuity Limited (Joint        Tel: [phone] 
    Broker) 
    Henry Fitzgerald- O'Connor, James 
    Asensio 
   Camarco 
    Jennifer Renwick, James Crothers         Tel: [phone] 
 
 
  Notes to Editors: 
   i3 is an oil and gas development company initially focused on the North Sea. The Company's 
   core asset is the Greater Liberator Area, located in Blocks 13/23d and 13/23c, containing 
   11 MMBO of 2P Reserves, 22 MMBO of 2C Contingent Resources and 47 MMBO of mid-case Prospective 
   Resources. The Greater Liberator Area consists of the Liberator oil field discovered by well 
   13/23d-8 and the Liberator West extension, both of which i3 hold a 100% working interest in. 
 
   The Company's strategy is to acquire high quality, low risk producing and development assets, 
   to broaden its portfolio and grow its reserves and production. 
 
   The information contained within this announcement is deemed by the Company to constitute 
   inside information under the Market Abuse Regulation (EU) No. 596/2014. 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

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April 09, 2019 02:00 ET (06:00 GMT)