Wednesday 27 June 2018

i3 Energy plc, an independent oil and gas company with assets and operations in the UK, updated the market on the status of its discussions with potential joint venture partners. As announced on 23 May 2018, i3 Energy respectively holds and has been awarded a 100% working interest in UK North Sea Blocks 13/23(d) ("Liberator") and 13/23(c) ("Liberator West") containing the entire Liberator trend with associated 2P reserves plus Mid case contingent and prospective resources totalling 80 MMBO. The Company has granted a period of exclusivity to a potential farminee in order to conclude contractual negotiations which, upon success, would result in i3 being fully funded for both the Liberator field development and the appraisal of Liberator West.

i3 expects to disclose the proposed terms of a commercial arrangement in due course. During the 90-day exclusivity period, the parties expect to enter a legally binding Sales & Purchase Agreement ("SPA"). Completion of the SPA will be subject to the negotiation of certain joint venture agreements in line with industry practice as well as certain conditions precedent relating to the approval of the final Liberator Phase I FDP by the OGA.

A Joint Venture project team will be formed between i3 and the potential farminee to accelerate and submit the enlarged Phase I FDP to the OGA for approval as soon as possible following signing of the SPA. Meanwhile, the parties will continue to progress the sourcing of long lead items and other development kit and services in a timely manner to meet their commitment to an earliest possible Liberator first oil date.

i3 also announced that shareholders should note that there is no certainty that the proposed farm-in will successfully conclude. Further announcements will be issued by i3 in due course and as appropriate.