London-listed i3 Energy (AIM:I3E) are preparing for a new appraisal programme at the Serenity and Liberator fields, with drilling to kick-start in mid-2020.
The group plans to delineate the fields which the group says may contain more than 600 million barrels of crude oil.
The mid-2020 programme follows i3’s previous drilling campaign at the same fields in 2019 where the company reported varied results.
Serenity’s 13/23c-10 well confirmed ‘strong commercial potential’ of the area whilst Liberator wells 13/23c-9 and 13/23c-11 did not reach i3's expectations.
In this morning's statement, the group detailed the upcoming multi-well appraisal programme to be subject to new funding -- currently, i3 is conducting a farm-down process of its licences to potentially fund the drilling.
Meanwhile, i3 will continue working with its senior lenders on a development facility for its assets the group explained.
Shares in i3 Energy were trading 3.06% higher at 12.63p on Thursday morning.
Majid Shafiq, Chief Executive of i3 Energy said he saw upcoming drilling operations as “the lowest risk path to unlocking substantial shareholder value.”
He further added that the company’s acreage, together with data gathered from the 2019 campaign would present itself as “very attractive” to any potential faminees looking to strengthen their portfolios.
In addition, the company also announced a further issue of share warrants as part of a previous July agreement with GE UK Oil & Gas.
i3 reported that 2.8 million warrants, relating to deferred payments for Oilfield Service contracts entered into between i3 and Baker Hughes, were issued with a set exercise price of 56.85p.
As of 30 November 2019, Baker Hughes has performed and invoiced i3 for £3,000,000 worth of oilfield services, the group explained.
GE UK can exercise the warrants via cash settlement or in exchange for payments due to Baker Hughes under OFS contracts with the Company.
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