Oil and gas company i3 Energy has raised $2.1 million through a placing of shares to fund a site survey and near-term engineering to enable the approval of the development plan for the Liberator field located in the North Sea.
The company said on Friday that the $2.1 million was raised through the placing of 1,542,336 new ordinary shares at 105 pence per share with existing institutional investors.
Proceeds of the placing will be used in funding a time-critical site survey and near-term engineering to enable the field development plan (FDP) approval for two Liberator development wells, the Block 13/23c (Liberator West) appraisal well, and the intended pipeline route and tie-in locations.
In order to maintain the target for the first oil during 2019, the completion of the survey is regarded by the company as crucial.
According to i3, the survey operations are scheduled to occur during September 2018 when more benign weather conditions can be expected than during the fourth quarter.
Joint venture negotiations still ongoing
Namely, negotiations continue regarding the proposed terms of a commercial arrangement between i3 and a potential farminee.
“Significant progress has been made in preparing a legally binding farmout agreement (FOA), joint operating agreement (JOA), and associated binding legal documentation which are expected to be signed before the end of the exclusivity period which runs to September 24,” the company said.
A joint venture project team has been formed between i3 and the potential farminee with the expectation that the enlarged Phase 1 Liberator field development plan (FDP) will be submitted to the Oil & Gas Authority (OGA) for consultation shortly after the parties enter into the farmout agreement.
If the negotiations are successful, i3 will be fully funded for both the Liberator field development and the appraisal of Liberator West.
But regardless of this, the company added that there could be no certainty that these negotiations and discussions would lead to definitive agreements.
Neill Carson, i3’s CEO, said: “We continue to make excellent progress with our proposed joint venture partner and remain optimistic that the legal documentation will be signed before the end of the exclusivity period with submission of the enlarged Liberator Phase 1 FDP to follow shortly thereafter.
“The small capital raise announced today allows i3 to secure critical resources and conduct operations that keep the Liberator development on track for first oil in 2019.”
Located in License P.1987, 64 kilometers north-east of Aberdeen, the Liberator field was discovered by Dana Petroleum in November 2013. i3 Energy has a 100% operated interest in the license. The field is immediately adjacent to the Repsol Sinopec-operated Blake field and only two kilometers from Blake’s producing drill center.