UK independent i3 Energy is ready to enter into a farm-out agreement with a potential JV partner for its Liberator field development located in the UK North Sea.
To remind, i3 Energy in late June 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.
During the 90-day exclusivity period, the parties expect to enter a legally binding sales & purchase agreement (SPA).
In a statement on Tuesday, September 18 i3 said that, under the exclusivity agreement from June, the potential joint venture partner was expected to deliver on key assurances within the 90-day period of exclusivity. Some of these conditions remain outstanding and are not expected to be addressed in advance of exclusivity ending on September 24, i3 said.
The company emphasized it remains ready to enter the legally binding farm-out agreement with the potential JV partner at such time as these key assurances have been provided.
The company continues to complete all regulatory and commercial requirements to obtain field development plan (FDP) approval for Liberator. i3 has signed the final license documentation from the UK Oil & Gas Authority (OGA) for its 30th Round Award of Block 13/23c, containing the Liberator West extension. This license, effective from October 1, 2018, is a prerequisite to the submittal of i3’s enlarged Liberator FDP.
i3 Energy’s updated FDP for Liberator is expected to be submitted to the UK’s OGA in 4Q 2018 and the approval of the plan is expected as soon as possible, following signing of the SPA with the JV partner.
Additionally, the site survey field operations, for which i3 Energy contracted Gardline, are about to start. The company explained that the outputs of this survey will enable it to complete the required Environmental Statement for Liberator’s expected production wells, appraisal target and pipeline route.
Graham Heath, i3 CFO, commented: “The independent work concluded by our potential JV partner since the beginning of our engagement validates the significant potential of the Liberator asset. We continue to progress i3’s necessary deliverables to attain FDP approval in 2019 and don’t see the delay in concluding potential joint venture discussions as an impediment to that.”
The Greater Liberator Area consists of the Liberator oil field discovered by well 13/23d-8 and the Liberator West extension. i3 holds a 100% working interest in both of these. Liberator is immediately adjacent to the Blake Field and only 2 km from Blake’s producing drill center. Liberator West will be the subject of a single well appraisal campaign in 4Q 2018.