i3 Energy PLC (LON:I3E) said it has relinquished UKCS licence P.1987 in the North Sea., cutting its licence fees outlay.
The licence was relinquished at the end of its two-year second term; to move into the third term of the licence an approved field development plan would have been required.
Licence P.1987, which encompasses UK Block 13/23d contains contingent resources that have been evaluated as sub-commercial by i3 and in an 'independent competent person' report and as such do not represent a viable commercial development, the company said.
i3 added that it may choose to re-apply for Licence P.1987 licence in the future if justified by its appraisal of the Liberator West / Minos High prospective areas and/or the Serenity discovery. The relinquishment will result in a significant saving in licence fees while i3 progresses its appraisal of resources on its adjoining P.2358 Licence.
The company said opting not to renew the licence will have no impact on licence P.2358, which commenced its four-year second term at the end of September 2020 and which contains the vast majority of the resources and potential reserves in the company's UK acreage.
Licence P.2358 includes the Serenity discovery and the Liberator West and Minos High prospective areas, which will be the focus of plans for appraisal and exploration drilling.