i3 Energy Plc (LON:I3E) told investors it has appointed FirstEnergy Capital LLP as acquisitions and divestitures advisor to assist the farm-out process for the Liberator oil field, in the UK North Sea.
The company noted that it previously granted 90-day exclusivity with a view to concluding a transaction with one potential partner for Liberator.
It was anticipated that the exclusivity period would allow the partner to deliver ‘key assurances’, and, whilst noting that some such assurances remain outstanding, I3 Energy said it “stands ready to consider the potential farminee's proposal at such time as their structural issues have been resolved.”
READ: I3 Energy confirms progress as it moves Liberator field towards sanction
Majid Shafiq, I3 Energy chief executive, said: "We are confident that GMP FirstEnergy is best placed to help us during our first concerted effort to market i3's development and appraisal programme of the greater Liberator area to potential joint venture partners and we are very pleased to be working with their team.
“Liberator has received strong interest to date and both i3 and our A&D advisor believe this farm-out process to be well-timed within the current environment.
“We look forward to updating the market as we move forward."
The project timeline aims to bring Liberator to field development plan approval by early 2019, and, as such, it expects to deliver an enlarged FDP to the UK authorities before the end of this year.
In the meantime, the company intends to engage with UK based lenders in order to upsize the level of credit that may be available for the project.
The company noted that indicative proposals were received in late 2017, when crude oil prices were substantially lower than they are today and before it had expanded the scope of the Liberator project via the government’s most recent licensing round.