i3 Energy PLC (LON:I3E) has told investors that it is in talks with its loan note holders to get consent to waive a condition which would require new funding to be in place by the end of this month.
In a statement, the company noted that a November 2019 extension demanded that i3E Energy, by April 30, entered a reserves-based lending facility or alternative financing to take the Liberator field.
However, the group said: “As the company will not be in a position to enter into such a facility by April 30, the company is in discussions with all noteholders to waive this condition and expects to provide an update to the market prior to April 30.”
In mid-February, before the coronavirus took hold, I3 Energy shares strengthened as the firm reported “good progress” with its North Sea farm-out efforts.
More recently, in March, the company announced a new strategic acquisition, picking up producing assets in Canada at a discount.
i3 inked an option agreement giving it the right to acquire Toscana’s debt and equity for C$3.95mln. The acquired debt amounts to around C$25mln.
The acquisition will add around 4.65mln barrels of proved and probable (2P) reserves, stated as of year-end 2019, which provides some 14.7 years of field life. Production averages 1,065 barrels oil equivalent per day in 2019, generating some C$5.5mln.
The company described the assets as “low-decline, long-life conventional fields”, while they are said to have an average break-even price of US$21.74 per barrel (which is C$30.43 per barrel).