i3 Energy PLC Operational Update (4989V)
09 April 2019 - 4:00PM
UK Regulatory
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: +44 (0) 203 781 8331
WH Ireland Limited (Nomad and Joint
Broker)
James Joyce, James Sinclair-Ford Tel: +44 (0) 207 220 1666
GMP FirstEnergy (Joint Broker)
Jonathan Wright Tel: +44 (0) 207 448 0200
Canaccord Genuity Limited (Joint Tel: +44 (0) 207 523 8000
Broker)
Henry Fitzgerald- O'Connor, James
Asensio
Camarco
Jennifer Renwick, James Crothers Tel: +44 (0) 203 781 8331
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 rns@lseg.com or visit www.rns.com.
END
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