30th 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 30th Offshore Licensing Round application target, Block 13/23c 123 km2, on a 100% Interest basis.
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."
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 mapand 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 30th 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 30° 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 30th Round Target described in i3's Corporate Presentation posted to the Company's website on 8th November 2017.
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 30th License award.