Oversubscribed placing raising £2.6m for i3 Energy

Independent oil and gas company i3 Energy updated the market on its funding progress on Wednesday, reporting that strong progress has been made advancing multiple funding options to finance its 2018 development programme.

The AIM-traded firm said joint venture discussions were at an advanced stage with multiple industrial partners relating to both its 100% owned Liberator Oil Field and its 30th Offshore Licensing Round application.

It said the conclusion of commercial arrangements was expected end of the first quarter of 2018, and on completion, the company expected to maintain a working interest of no less than 67% of Liberator and the 30th Round application licences, after a multiple of the associated capital expenditures had been refunded to the parties from post-production cash flow.

Indicative commercial interest had been received from a counterparty to provide 100% of the funding for a multi-well development on Liberator, and the 30th Round application block, amounting to an estimated capital programme of approximately $200m.

The company confirmed an oversubscribed placing to raise approximately £2.57m ($3.65m) was taking place.

It said 8,563,630 new ordinary shares in the company would be issued at a price of 30p per share, representing a 0.4% premium to the 30-day average for the week to 26 January

The net proceeds of the placing would be used towards prerequisite engineering, trees and wellheads for the Liberator development, and general corporate purposes.

“We have been incredibly busy progressing multiple funding options for both our 100% owned Liberator development and the low risk development growth opportunity we have applied for in the 30th Round,” said i3 CEO Neill Carson.

“There is strong momentum within the company and today's funding strengthens our financial position allowing us to continue our engineering plans for our Liberator development ensuring the company is ready for the next operational stage of the project.

“We look forward to updating our shareholders in due course.”