i3 Energy edges closer to North Sea farm-in deal

Independent oil and gas company i3 Energy on Friday reported “significant progress” in its proposed joint venture farm-in deal for the Liberator and Liberator West blocks in the UK North Sea.

The firm now expects to sign legally binding documentation in reference to a farm out agreement (FAO) and a joint operating agreement before the end of an exclusivity period which runs to 24 September.

Successful completion will result in i3 being fully funded for both the Liberator field development and the appraisal of Liberator West.

"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 I FDP to follow shortly thereafter," said chief executive Neill Carson.

The exclusivity period was granted to the potential joint venture partner by i3 to allow for sufficient time to complete contractual negotiations.

The AIM-listed firm has also raised $2.1m through a share placing to assist with the costs of a site survey, analysis of the data and near-term engineering that are necessary for the completion of a phase I field development plan that will be presented to the oil and gas authority after the FOA has been signed.

"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. We look forward to updating our shareholders in due course," said Carson.

I3 Energy’s shares were down 5.97% at 104.84p.