i3 Energy plc (I3E) , has engaged the acquisitions and divestitures advisor, First Energy Capital, to assist with a farmout of the company’s Liberator development and appraisal programme.
FirstEnergy Capital has been active in recent UK North Sea transactions and is a specialist in the field.
The Greater Liberator Area, located in Blocks 13/23d and 13/23c, contains 11 million barrels of 2P Reserves, 22 million barrels of 2C Contingent Resources and 47 million barrels of mid-case Prospective Resources.
I3 previously had a 90-day period of exclusivity to a potential joint venture partner for Liberator– some of the key assurances the farminee was expected to deliver remain outstanding, however i3 is “ready to consider the potential farminee’s proposal” once structural issues have been resolved.
The company is to engage UK-based lenders to increase its available credit for Liberator, indicative proposals were received in November 2017 when Brent oil was $60/bbl, and before i3’s award of the western extension of the Liberator field. Brent oil is currently at $81/bbl.
Shares in i3E were trading at 61p each following the announcement.
Majid Shafiq, CEO, commented "We are confident that GMP FirstEnergy is best placed to help us during our first concerted effort to market i3's development and appraisal programme of the greater Liberator area to potential joint venture partners and we are very pleased to be working with their team.”
He added “Liberator has received strong interest to date and both i3 and our A&D advisor believe this farmout process to be well-timed within the current environment.”
“We look forward to updating the market as we move forward."
I3E is an oil and gas company with assets and operations in the UK, focused on the North Sea.
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