Majid Shafiq & Graham Heath of i3 Energy discuss the farm-out of their Serenity oil discovery

Majid Shafiq, CEO & Graham Heath CFO of i3 Energy #I3E discuss the farm-out of their Serenity oil discovery in the UK North Sea to Europa Oil & Gas #EOG

Serenity Farm-out

i3 notes the announcement by Europa Oil & Gas Limited ("Europa") (company number 03093716) regarding its agreement in principle to farm-in to the Company's Serenity oil discovery in the UK North Sea and the equity funding it is conducting to fund its farm-in obligations.

We can confirm that the farm-in, joint operating agreement and trust deed have been essentially agreed between the parties to enable Europa to acquire a 25% non-operated working interest ("WI") in a sub-area of UKCS Licence P.2358 Block 13/23c (containing the Serenity discovery) by funding a 46.25% paying interest for one appraisal well on the field, whereafter i3 will retain a 75% operated WI in the Block.

The well cost is estimated to be circa £14 million and Europa's 46.25% paying interest will be applied up to a capped gross well cost of £15 million. Any well costs exceeding £15 million will be paid by the companies in proportion to their respective working interests. Completion of the deal and transfer of the licence interest to Europa will be subject to the following principal conditions:

1.   Europa funding an escrow account with their paying interest obligation. We note that closing of Europa's equity funding is subject to the approval of its shareholders at an EGM.

2.   Approval of the UK Oil and Gas Authority ("OGA") to the creation of the Serenity area of Block 13/23c as a new block of Licence P.2358 (the "New Serenity Block").

3.   Consent of the OGA to assignment of an interest in the Licence and New Serenity Block to Europa.

4.   UK National Security and Investment Act approval.

5.   Approval of i3's Loan Note holders of the assignment of the Licence interest.

We will make a further announcement should Europa successfully complete its accelerated book-build and when transaction agreements for the farm-out are executed.

As previously announced, the Company has been in discussions with a number of potential Serenity farminees and these other discussions remain ongoing and may result in farm-out of additional working interests in the New Serenity Block.

Following this farm-out i3 will retain a 100% WI in the remainder of Block 13/23c which contains the Minos High prospect and Liberator discovery. 

About i3 Energy

i3 Energy is an oil and gas Company with a low cost, diversified, growing production base in Canada's most prolific hydrocarbon region, the Western Canadian Sedimentary Basin and appraisal assets in the North Sea with significant upside. 

The Company is well positioned to deliver future growth through the optimisation of its existing 100% owned asset base and the acquisition of long life, low decline conventional production assets.

i3 is dedicated to responsible corporate practices and the environment, and places high value n adhering to strong Environmental, Social and Governance ("ESG") practices.  i3 is proud of its performance to date as a responsible steward of the environment, people, and capital management.  The Company is committed to maintaining an ESG strategy, which has broader implications to long-term value creation, as these benefits extend beyond regulatory requirements.

i3 Energy is listed on the AIM market of the London Stock Exchange. For further information on i3 Energy please visit https://i3.energy/

The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.