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Oil & Gas

i3 Energy confirms plan to drill at Serenity and Liberator in mid-2020

An envisaged new programme of appraisal drilling will be subject to new funding, and, to that end, a farm-out partnering process has begun.

i3 Energy Plc (LON:i3E) told investors it is preparing for a new appraisal campaign for the Serenity and Liberator fields, with work set to start in mid-2020.

The aim will be to further delineate the two fields which are estimated to host more than 600mln barrels of in place crude oil.

It follows on from a 2019 well which had mixed results – with the new discovery at Serenity and two weaker-than-expected appraisal wells for the Liberator project.

I3 said planning has now begun for a new multi-well programme.

The envisaged new well programme is subject to new funding. I3 is kicking off a farm-down process in order to bring in a partner to fund the planned drilling.

"The discovery of the Serenity oil field was a transformational event in i3's history,” said Majid Shaffiq, i3 Energy chief executive.

READ: I3 Energy wants to drill multiple new wells at Serenity

“We are very excited about the further drilling operations we expect to conduct in 2020 and see this as the lowest risk path to unlocking substantial shareholder value.

“We believe our acreage, together with the data retrieved from our 2019 drilling campaign, will be very attractive to potential farminees looking to add material barrels and near-term production to their portfolios."

Additionally, i3 Energy revealed a new issue of share warrants – attached to a prior July agreement with GE UK – following deferred payments under a oil field services contract entered into with Baker Hughes. Some 2.8mln warrants were issued, with the exercise price set at 56.85p.

Some £3mln of services has been provided, as of 30 November 2019, and GE UK can exercise the warrants via cash settlement or in exchange for payments due to Baker Hughes under the contracts.

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