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LONDON (Alliance News) - i3 Energy PLC on Tuesday said it plans to raise at least GBP16 million in a discounted share placing to fund 2019 development work.
i3 will place shares at 37 pence each, compared to a share price Tuesday of 40.00p, down 8.1%. i3 will also carry out an open offer at the same price to raise a further GBP2 million.
Canaccord Genuity Group Inc, GMP FirstEnergy, and WH Ireland Group PLC have acted as joint bookrunners.
The company will use the cash, alongside an anticipated GBP24 million loan note, to fund its 2019 multi-well appraisal and development drilling programme on the Liberator oil field in the UK North Sea.
Chief Executive Majid Shafiq said: "Today's placing, alongside our anticipated junior loan facility, allows us to retain a 100% interest in and operatorship of the Liberator field and Serenity prospect and ensures i3 is in a robust and competitive position to deliver substantial shareholder growth as we move into an operationally driven phase.
"This is a further key milestone the management team has delivered on and ensures the drilling of our first three wells remains on track to commence in June using the Blackford Dolphin drilling rig."
"Liberator is a highly material project with attractive production potential and strong growth optionality relative to the size of i3," Shafiq continued.
"We will continue to pursue joint venture discussions from a position of financial strength with a number of high calibre potential partners as we also progress a senior debt facility that will enable the company to develop Liberator on a 100% basis until such time as we attract a joint venture farm-out proposal we believe to be commensurate with the potential of our asset base."