i3 Energy PLC (LON:I3E) has granted a period of exclusivity to an unnamed company for a potential farm-in deal for both the Liberator and Liberator West blocks in the UK North Sea.
The AIM-listed independent oil and gas company said the contractual negotiations would, if successful, result in i3 being fully funded for both the Liberator field development and the appraisal of Liberator West.
WATCH: i3 Energy grants exclusivity period to potential farm-in partner for Liberator blocks
As announced on 23 May 2018, i3 Energy respectively holds and has been awarded a 100% working interest in UK North Sea Blocks 13/23(d) (Liberator) and 13/23(c) (Liberator West).
i3 said it expects to disclose the proposed terms of a commercial arrangement in due course but added that shareholders should note that there is no certainty that the proposed farm-in will successfully conclude. It added that further announcements will be issued in due course and as appropriate.
Neill Carson, i3 Energy’s CEO commented: "The entry by i3 into a period of exclusivity with a potential farm-in partner for the Liberator Licences is a key step on our path to securing the funding for the development and appraisal of the entire Liberator trend.
“The interest from a potential farm-in partner can be attributed to the quality and scale of the Liberator opportunity and the state of project readiness.”
He added: “We look forward to working with the potential farminee's management to conclude our negotiations and towards the safe and efficient delivery of the Liberator development and Liberator West appraisal programmes in due course."
Competent person report
According to a report by AGR Tracs International Limited, i3's independent competent person, Liberator West contains a mid-case estimate of 22 million barrels of oil (MMBO) of 2C Contingent Resources, in addition to Liberator's 11 MMBO of 2P Reserves which i3 expects to increase through well optimisation.
AGR's Liberator West Resources Report also recognizes an area within the Liberator structure which extends beyond i3's modified Phase I development plans, and provides additional mid case Prospective Resources of 47 MMBO recoverable for this area, bringing i3's total Mid case reserves, contingent resources and prospective resources to over 80 MMBO on a gross basis.