i3 Energy plc: Funding Update
Thursday 1 February 2018
i3 Energy has been progressing multiple funding options to finance its 2018 development programme and is pleased to report that it is in advanced discussions with multiple industrial parties regarding potential Joint Venture ("JV") arrangements relating to both its 100% owned Liberator Oil Field and its application within the UK's 30th Round.
Pursuant to these discussions, the Company has received indicative commercial interest from a counterparty to provide 100% of the funding for a multi-well development on Liberator and the Company's 30th Round application block, amounting to estimated total capital commitments of approximately US$200 million.
JV discussions have reached a mature stage and, should these commercial arrangements conclude in an expected six to eight weeks timeframe, the Company would maintain a working interest of no less than 67% in its Liberator and 30th Round application blocks, after a multiple of the capital commitments have been refunded to the parties from post-production cash flow.
The Joint Venture discussions also contemplate capital being provided to i3 by an industrial party to enable the Liberator development to proceed utilising that party's funding alongside other credit facilities, even in circumstances where the Company is unsuccessful with its 30th Round application.
There can be no certainty that these negotiations and discussions will lead to definitive agreements.
Liberator Field Phase I
Following i3's submission of the Liberator Phase I Field Development Plan to the UK Oil & Gas Authority on 15th September 2017, the Company commissioned AGR TRACS International Limited ("AGR") to prepare a Reserve Report ("RR") over the Liberator field for the gross reserves that are expected to be developed and produced subsequent to the approval of the Phase I Field Development Plan (as described in the Executive Summary of the RR). The Liberator field is planned to be developed via 2 horizontal producers in Phase I, targeting the Main and Northwest culminations of the Phase I area. A separate potential future Phase II plan is contemplated and may include further development wells, yet these potential reserves are not reported within the RR.