Europa Oil & Gas (Holdings) Plc has now signed the farm-in agreement with i3 Energy Plc which will see a new joint venture partnership for the Serenity project in the North Sea.
The new partner in Serenity will earn a 25% interest in the field in return for funding 46.25% of the costs of a planned appraisal well, capped at £15mln. Drilling is slated for the third quarter of 2022, with well costs estimated at around £14mln (gross).
The tie-up is subject to regulatory approval by Britain’s North Sea Transition Authority, otherwise there are no material conditions for Europa to satisfy to complete the farm-in.
"I'm delighted to announce the signature of this farm-in which fulfils our promised goal of adding an appraisal asset to the Europa portfolio,” Europa chief executive Simon Oddie said in a statement.
“Serenity is a late-stage appraisal and development asset that provides our shareholders with exposure to a very exciting asset that could deliver significant near-term value to our shareholders with the drilling of the Serenity appraisal well expected in late Q3 of 2022.
“The objective of the well is to prove up additional volumes of hydrocarbons beyond those encountered in the original discovery well, which alone are considered commercially viable.”
Majid Shafiq, I3 chief executive, meanwhile, added: "i3 is delighted to announce the execution of the farm-in agreement with Europa and we will now commence the detailed planning and permitting process for the Serenity appraisal well, which we now expect to spud in late Q3 this year."