RE: Takeover 35p plus26 Mar 2020 15:06
Thu, 2nd Jan 2020 07:00
RNS Number : 4673Y
i3 Energy PLC
02 January 2020
2 January 2020
i3 Energy plc
("i3" or the "Company")
Corporate and Funding Update
i3 Energy plc, an independent oil and gas company with assets and operations in the UK, is pleased to announce the following update.
2020 planning and farm-out process underway
Following i3's 2019 drilling campaign at Serenity and Liberator, the Company is now preparing for a mid-2020 appraisal programme to delineate the fields which the Company believes could contain more than 600 MMbbls P50 STOIIP.
Well and fluid data from the Serenity 13/23c-10 discovery well encountered sweet, 31.5° API crude in 11 feet of upper Captain oil-bearing sands. The measured oil column on structure, observed through pressure data, was 604 feet true vertical depth (TVD). If the Serenity and neighbouring Tain oil field are in communication as i3 expects, then this infers an oil column height of 1124 feet TVD. On the basis of information recovered from the discovery well, the Company retains its pre-drill estimate of 197 mmbbls P50 STOIIP for Serenity. The Company expects the thickness of the upper Captain sands package to increase, potentially substantially, moving westward along structure, based upon a measured sand thickness of 115 ft true vertical thickness (TVT) immediately west of the Serenity accumulation in the 13/23a-7A well. The 13/23c-10 well has confirmed the strong commercial potential of the Serenity area, and reservoir model simulations demonstrate potential recovery factors above 60%.
Though Liberator wells 13/23c-9 and 13/23c-11 did not meet i3's expectations, the latter confirmed a migration path for hydrocarbons to move westward towards the "Minos High" where the upper Captain sands package is estimated to have a thickness of circa 200 ft TVT above the oil-water contact. Post-drill mapping of the entire Liberator structure still shows potential in-place resources above 400 MMbbls.
With the highly successful Serenity discovery and remaining potential at Liberator, the Company has begun planning a mid-2020, multi-well appraisal programme and is simultaneously conducting a farm-down process of its licences to potentially fund the 2020 drilling campaign. The Company will continue working with its senior lenders on a development facility for its assets. Future drilling remains subject to funding and i3 will update the market on these endeavours in due course as material progress is made.
GE UK warrants for services rendered
As part of an agreement announced 2 July 2019, i3 Energy has issued a further 2,816,739 warrants to subscribe for Ordinary Shares at an exercise price of 56.85 pence per Ordinary Share to GE Oil & Gas UK Limited ("GE UK"), in addition to the 2,204,574 issued to GE UK and as announced on 29 October 2019. As previously referenced in the Company's July announcement, these warrants relate t
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