TIDMI3E
RNS Number : 0011P
i3 Energy PLC
23 May 2018
23 May 2018
i3 Energy plc
("i3" or the "Company")
30(th) Offshore Licensing Round Award
Material Growth in Resource Base to 80 MMBO
i3 Energy plc, an independent oil and gas company with assets
and operations in the UK is pleased to announce it has been awarded
its sole 30(th) Offshore Licensing Round application target, Block
13/23c 123 km(2) , on a 100% Interest basis.
Highlights
-- Block 13/23c contains a material extension of the Liberator
field, referred to by i3 as Liberator West, with further
prospectivity identified by the Company outside the Liberator
trend
-- i3 plans to enlarge its previously submitted Field
Development Plan ("FDP") area to include an optimised drill centre
from which wells could extend into Liberator West, ensuring maximum
hydrocarbon capture during Phase I development
-- The award delivers a significant increase in i3's combined
Reserve & Resource Base, now totalling an independently
verified 80 MMBO
o Liberator West adds 22 MMBO Mid-case 2C Contingent Resources
and 47 MMBO Mid-case Prospective Resources to the Company's
currently held 11 MMBO of 2P Reserves
-- A Liberator West appraisal well is being planned for late
2018 (into the Contingent Resource area), with i3's Competent
Person, AGR TRACS International Limited ("AGR"), estimating a 70%
chance of finding commercial hydrocarbon volumes
-- The award of 13/23c adds clarity to i3's ongoing Joint Venture development funding process
Neill Carson, CEO commented
"The award of our sole targeted application Block 13/23c ensures
i3 has 100% ownership of the full, highly attractive Liberator
project. This provides significant additional growth potential and
increases our existing full development potential resource base
significantly to 80 MMBO. We're excited that this additional
potential, within our core area, is proximal to existing
infrastructure whilst also being of a scale that supports
stand-alone solutions. It will provide relatively low-risk,
low-cost drilling opportunities to develop additional barrels in
this highly productive and well-established trend."
Background
The Company had previously submitted a Liberator Phase I FDP to
the UK Oil and Gas Authority ("OGA") which addresses hydrocarbons
attributed to its 100% Interest in Licence P.1987 Block 13/23d
("Liberator"), with an initial oil in place volume range estimated
to be 18 (Low) - 38 (Best) - 58 (High) MMBO.
After purchasing Liberator in 2016, the Company acquired and
collated numerous seismic datasets to clearly map and conduct a
consistent and comprehensive re-evaluation of the area post the
discovery of the Liberator field. This new approach, not previously
considered by former licensees, demonstrated a sizeable westward
extension into adjacent Block 13/23c, and i3 consistently declared
an interest in the block during its consultations with the OGA as a
result of its findings. As part of its bid submission in the UK's
30(th) Offshore Licensing Round in November 2017, i3 committed to
drilling a firm appraisal well in Liberator West if awarded. With
its successful application, the Company now intends to appraise
Liberator West as early as Q4 2018. AGR estimates the appraisal of
Liberator West to have a 70% chance of encountering commercial
hydrocarbon volumes.
The Liberator discovery in Block 13/23d contains 30deg API oil
trapped within the Cretaceous Captain reservoir. With the addition
of Block 13/23c, Liberator and Liberator West together form a
single elongated structure, 10 km long and 4 km wide, which
potentially contains a range of 48 (Low) - 237 (Best) - 490 (High)
MMBO initially in place. With the block award, i3 now owns 100% of
these potential volumes.
In advance of Liberator West appraisal, the Company intends to
update and resubmit an enlarged Phase I FDP to include a
repositioned drill centre that enables the depletion of reserves
from the newly awarded block. This approach will support a phased
development that optimizes the recovery of hydrocarbons from the
entire accumulation.
Block 13/23c also contains additional prospectivity outside of
the Liberator trend which i3 will evaluate and de-risk before firm
plans are considered.
Reserves and Resources
According to AGR, Liberator West contains a Mid-case of 22 MMBO
of 2C Contingent Resources in addition to Liberator's 11 MMBO of
Reserves, which i3 expects to increase through well
optimisation.
AGR's Liberator West Reserve Report (now posted to the Company's
website at http://i3.energy) recognizes an area within the
Liberator structure which extends beyond i3's modified Phase I
development plans, and provides additional 'Best Estimate'
Prospective Resources of 47 MMBO recoverable for this area
(bringing i3's total reserves, contingent resources and prospective
resources to 80 MMBO). For further clarity a summary map of the
full Liberator trend has been posted to the Company's website which
details the location and corresponding resources extending across
blocks 13/23d and 13/23c, respectively designated Liberator Phases
I and II. To assess the potential of the entire Liberator
structure, the Company plans to drill an appraisal well into a
relatively low-risk area of the Liberator West structure in late
2018, subject to funding. In the event of success, this appraisal
will not only enable reserves to be developed through Liberator
Phase I, but will also form the basis for a second phase of
development of the Greater Liberator Area.
In accepting this award, i3 Energy has committed to drill a firm
appraisal well into Liberator West and to conduct a further seismic
evaluation of the entire area of the licence, within which it has
identified further prospectivity.
For the avoidance of doubt, Block 13/23c (Liberator West) is the
same 30(th) Round Target described in i3's Corporate Presentation
posted to the Company's website on 8(th) November 2017.
Development Funding
As previously announced, the Company continues to progress
numerous funding initiatives and is in advanced discussions with
multiple potential Joint Venture partners regarding development
funding that i3 believes would maximise shareholder value from the
enlarged Liberator development which the Company expects will
result from this 30(th) License award.
S
CONTACT DETAILS:
i3 Energy plc
Neill Carson (CEO) / Graham c/o Camarco
Heath (CFO) Tel: +44 (0) 203
757 4980
WH Ireland Limited (Nomad
and Joint Broker)
James Joyce, James Sinclair-Ford Tel: +44 (0) 207
220 1666
GMP FirstEnergy (Joint Broker)
Jonathan Wright, David van Tel: +44 (0) 207
Erp 448 0200
Camarco
Georgia Edmonds, Jane Glover, Tel: +44 (0) 203
James Crothers 757 4980
Notes to Editors:
i3 is an oil and gas development company initially focused on the North Sea. The Company's
core asset is the Greater Liberator Area, located in Blocks 13/23d and 13/23c, containing
recoverable resources of 80 MMBO. The Greater Liberator Area consists of the Liberator oil
field discovered by well 13/23d-8 and the Liberator West extension, both of which i3 hold
a 100% working interest in. Liberator West will be the subject of a single well appraisal
campaign in Q4 2018.
The Company's strategy is to acquire high quality, low risk producing and development assets,
to broaden its portfolio and grow its reserves and production.
i3 has a strong management team with a track record of delivery and was founded by Neill Carson,
previously founder and CEO of Ithaca Energy, where he built an asset portfolio including multiple
developments.
The information contained within this announcement is deemed by the Company to constitute
inside information under the Market Abuse Regulation (EU) No. 596/2014.
Glossary
"MMBO" millions (10(6) ) of barrels
of oil
"Contingent Resources" those quantities of petroleum
estimated, as of a given
date, to be potentially
recoverable from known
accumulations, but the
applied project(s) are
not yet considered mature
enough for commercial development
due to one or more contingencies;
"Prospective Resources" those estimated volumes
associated with undiscovered
accumulations. These represent
quantities of petroleum
which are estimated, as
of a given date, to be
potentially recoverable
from oil and gas deposits
identified on the basis
of indirect evidence but
which have not yet been
drilled;
"P10 resource" reflects a volume estimate
"High case resource" that, assuming the accumulation
is developed, there is
a 10% probability that
the quantities actually
recovered will equal or
exceed the estimate. This
is therefore a high estimate
of resource;
"P50 resource" reflects a volume estimate
"Mid case resource" that, assuming the accumulation
is developed, there is
a 50% probability that
the quantities actually
recovered will equal or
exceed the estimate. This
is therefore a median or
best case estimate of resource;
"P90 resource" reflects a volume estimate
"Low case resource" that, assuming the accumulation
is developed, there is
a 90% probability that
the quantities actually
recovered will equal or
exceed the estimate. This
is therefore a low estimate
of resource;
"Proved Reserves" those quantities of petroleum
which, by analysis of geological
and engineering data, can
be estimated with reasonable
certainty to be commercially
recoverable, from a given
date forward, from known
reservoirs and under current
economic conditions, operating
methods and government
regulations. Proved reserves
can be categorised as developed
or undeveloped. If deterministic
methods are used, the term
reasonable certainty is
intended to express a high
degree of confidence that
the quantities will be
recovered. If probabilistic
methods are used, there
should be at least a 90%
probability that the quantities
actually recovered will
equal or exceed the estimate;
"Probable Reserves" those unproved reserves
which analysis of geological
and engineering data suggests
are more likely than not
to be recoverable. In this
context, when probabilistic
methods are used, there
should be at least a 50%
probability that the quantities
actually recovered will
equal or exceed the sum
of estimated Proved plus
Probable reserves;
"Reserves" those quantities of hydrocarbons
which are anticipated to
be commercially recovered
from known accumulations;
"2P" the sum of Proved plus
Probable Reserves;
Qualified Person's Statement:
In accordance with the AIM Note for Mining and Oil and Gas
Companies, i3 discloses that Iain Campbell, i3's Reservoir Manager
is the qualified person who has reviewed the technical information
contained in this document. He has an MEng in Petroleum Engineering
and has been a member of the Society of Petroleum Engineers since
1985. He has over 40 years' experience in the oil and gas industry.
Iain Campbell consents to the inclusion of the information in the
form and context in which it appears.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCPGUQAAUPRUMW
(END) Dow Jones Newswires
May 23, 2018 03:59 ET (07:59 GMT)
I3 Energy (LSE:I3E)
Historical Stock Chart
From Apr 2024 to May 2024
I3 Energy (LSE:I3E)
Historical Stock Chart
From May 2023 to May 2024