i3 Energy Provides Serenity Update

RNS Number : 1793K

i3 Energy PLC

12 December 2018

 

12^th December 2018

i3 Energy plc

("i3" or the "Company")

i3 Energy Provides Serenity Update

i3 Energy plc, an independent oil and gas company with assets and operations in the UK, has released a new presentation on its website which provides additional information regarding its Serenity prospect. The Company will be presenting this material as part of its participation at the PROSPEX 2018 oil and gas exploration networking event in London on December 12^th and 13^th.

As previously announced, i3 has been assessing a structure in the northern portion of its 100% owned Licence P.2358 Block 13/23c, which it calls the Serenity prospect. Serenity is an amplitude supported feature that has an areal extent of circa 10 km² and is interpreted to be the westerly extension into Block 13/23c of the Tain discovery. The Tain discovery well, drilled in September 2005, encountered 32° API oil in Captain and Coracle sands and was subsequently appraised by three wells.

i3 estimates Serenity to have a P50 STOIIP of 197 MMstb, bringing the total potential un-risked Mid case STOIIP within i3 Energy's licenced areas containing the Greater Liberator development and the Serenity prospect to greater than 500 MMstb.

Serenity provides i3 with exposure to low cost and potentially high return upside that could be tied in to either its Liberator Phase I or incremental Phase II infrastructure.

The new presentation will be available on the Company's website later today.

Majid Shafiq, i3's CEO, commented 

"The Serenity prospect provides significant organic growth potential to i3 beyond our plans for the Liberator development and demonstrates the quality of the licence we acquired in the 30^th Round."

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Qualified Person's Statement:

In accordance with the AIM Note for Mining and Oil and Gas Companies, i3 discloses that Mihai Butuc, i3's Manager, New Ventures is the qualified person who has reviewed the technical information contained in this document.  He graduated as a Diplomat Engineer, Geology and Geophysics from the University of Bucharest in 1985 and is a member of the Society of Petroleum Engineers.  Mihai Butuc consents to the inclusion of the information in the form and context in which it appears.

CONTACT DETAILS:

	i3 Energy plc
	Majid Shafiq (CEO) / Graham Heath (CFO)	c/o Camarco Tel: [phone]
	WH Ireland Limited (Nomad and Joint Broker)
	James Joyce, James Sinclair-Ford	Tel: [phone]
	GMP FirstEnergy (Joint Broker)
	Jonathan Wright, David van Erp	Tel: [phone]
	Canaccord Genuity Limited (Joint Broker) Henry Fitzgerald- O'Connor, James Asensio	Tel: [phone]
	Camarco Georgia Edmonds, Jane Glover, James Crothers	Tel: [phone]

Glossary

"BCF" or "bscf"	billion (109) standard cubic feet;
''Boe''	barrels of oil equivalent.  One barrel of oil is approximately the energy equivalent of 6,000 standard cubic feet of natural gas;
"boepd"	Barrels of oil equivalent per day;
"MMBO"	millions (106) of barrels of oil;
"MMboe"	millions (106) of barrels of oil equivalent;
"MMcfd" or "MMscfd"	millions (106) of standard cubic feet per day;
"MMstb"	millions (106) of stock tank barrels of oil;
"Net Present Value" or "NPV"	the discounted value of an investment's cash inflows minus the discounted value of its cash outflows;
"PRMS"	The SPE/WPC/AAPG/SPEE Petroleum Resources Management System for Reserves and Resources Classification;
"standard cubic feet" or "scf"	standard cubic feet measured at 14.7 pounds per square inch and 60 degrees Fahrenheit;
Stock Tank Oil Initially In Place or "STOIIP"	a method of estimating how much oil in a reservoir can be economically brought to the surface;
RESOURCES
"Contingent Resources"	those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies;
"Prospective Resources"	those estimated volumes associated with undiscovered accumulations. These represent quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from oil and gas deposits identified on the basis of indirect evidence but which have not yet been drilled;
"P10 resource" "High case resource"	reflects a volume estimate that, assuming the accumulation is developed, there is a 10% probability that the quantities actually recovered will equal or exceed the estimate.  This is therefore a high estimate of resource;
"P50 resource" "Mid case resource"	reflects a volume estimate that, assuming the accumulation is developed, there is a 50% probability that the quantities actually recovered will equal or exceed the estimate.  This is therefore a median or best case estimate of resource;
"P90 resource" "Low case resource"	reflects a volume estimate that, assuming the accumulation is developed, there is a 90% probability that the quantities actually recovered will equal or exceed the estimate.  This is therefore a low estimate of resource;
RESERVES
"Proved Reserves"	those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods and government regulations.  Proved reserves can be categorised as developed or undeveloped.  If deterministic methods are used, the term reasonable certainty is intended to express a high degree of confidence that the quantities will be recovered.  If probabilistic methods are used, there should be at least a 90% probability that the quantities actually recovered will equal or exceed the estimate;
"Probable Reserves"	those unproved reserves which analysis of geological and engineering data suggests are more likely than not to be recoverable.  In this context, when probabilistic methods are used, there should be at least a 50% probability that the quantities actually recovered will equal or exceed the sum of estimated Proved plus Probable reserves;
"Possible Reserves"	those additional reserves which analysis of geological and engineering data suggests are less likely to be recoverable than Probable Reserves.  In this context, when probabilistic methods are used, there should be at least a 10% probability that the quantities actually recovered will equal or exceed the sum of estimated Proved plus Probable plus Possible reserves;
"Reserves"	those quantities of hydrocarbons which are anticipated to be commercially recovered from known accumulations;
"Justified for Development"	implementation of the development project is justified on the basis of reasonable forecast commercial conditions at the time of reporting, and there are reasonable expectations that all necessary approvals/contracts will be obtained;
"1P"	the Proved Reserves;
"2P"	the sum of Proved plus Probable Reserves;
"3P"	the sum of Proved plus Probable plus Possible Reserves.

Notes to Editors:

Notes to Editors: i3 is an oil and gas development company initially focused on the North Sea. The Company's core asset is the Greater Liberator Area, located in Blocks 13/23d and 13/23c, containing 11 MMBO of 2P Reserves, 22 MMBO of 2C Contingent Resources and 47 MMBO of mid-case Prospective Resources. The Greater Liberator Area consists of the Liberator oil field discovered by well 13/23d-8 and the Liberator West extension, both of which i3 hold a 100% working interest in. The Company's strategy is to acquire high quality, low risk producing and development assets, to broaden its portfolio and grow its reserves and production. The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.

 

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