Oil and gas company i3 Energy has engaged an acquisitions and divestitures advisor, FirstEnergy Capital LLP, to assist with the farm-out of the greater Liberator development and appraisal program.
i3 said on Wednesday that FirstEnergy was active in recent UK North Sea transactions and, upon the company’s assessment of numerous potential advisors, was determined to be the most capable party to assist with its JV initiative.
It is intended that the process will conclude in advance of i3 receiving Liberator field development plan (FDP) approval.
i3 had previously granted a 90-day period of exclusivity to a potential joint venture partner during which time the farminee was expected to deliver on key assurances. While some of these remain outstanding, i3 stands ready to consider the potential farminee’s proposal at such time as their structural issues have been resolved.
Concurrent with its farm-out process, the company said it would engage UK-based lenders to upsize the level of credit that may be available for its Liberator development.
Indicative proposals had been received in November 2017 when Brent was circa $60/bbl and prior to i3’s award of Block 13/23c in the UK’s 30th Offshore Licensing Round, containing the western extension of the Liberator field, which added 22 MMBO of 2C Contingent Resources and 47 MMBO of mid-case Prospective Resources to i3’s portfolio.
i3 added that it was progressing with all requirements needed to achieve FDP approval in early 2019. An enlarged FDP will be presented to the OGA for consideration before the end of the year.
Majid Shafiq, CEO of i3, who took on the role earlier this month, said: “We are confident that FirstEnergy is best placed to help us during our first concerted effort to market i3’s development and appraisal program of the greater Liberator area to potential joint venture partners and we are very pleased to be working with their team.
“Liberator has received strong interest to date, and both i3 and our A&D advisor believe this farm-out process to be well-timed within the current environment.”
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 located in the North Sea, immediately adjacent to the Blake Field and only two kilometers from Blake’s producing drill center.