i3 Energy, based in UK, has entered into a drilling contract with Dolphin Drilling to utilise either the Borgland Dolphin or Blackford Dolphin semi-submersible drilling rig for a minimum 82-day programme which is due to commence not later than 1st September 2020 or as otherwise agreed between the parties and also has the ability to be extended for a period of 78 days. The contract is conditional on i3 confirming availability of funds to satisfy its obligations under the contract, 90 days prior to drilling commencement.
i3’s current minimum programme for the appraisal drilling consists of two appraisal wells on Serenity plus a sidetrack on each well, contingent on drilling outcomes, at a total expected gross cost of approximately US$33 million. The Option Programme would include wells on the Minos High structure and the Liberator West area in Block 13/23c.
In concert with the abovementioned drilling contract, i3 has agreed that Dolphin will earn up to a 10% economic interest in Block 13/23c via a Net Revenue Sharing Agreement in exchange for Dolphin forgoing its Profit Margin above its Opex, up to a maximum amount of US$14.4 million.
The site survey over Serenity and the Minos High area of Liberator West has been completed on time and budget without any health and safety incidents. After all final survey reports are received, i3 will commence the technical and environmental work necessary to plan for and permit its Summer 2020 drilling programme.
Majid Shafiq, CEO of i3 Energy commented:
“We are delighted to have executed a drilling contract with Dolphin Drilling for our Summer 2020 appraisal programme. Dolphin performed exceptionally well in our 2019 campaign, drilling our wells on time and on budget and without any significant health, safety or environmental issues. Their support announced today not only contributes a significant component to the funding structure for our upcoming drilling campaign but also demonstrates the quality of our licenses.”
i3 Energy’s core assets are its 100% owned UKCS blocks 13/23c and 13/23d containing the Liberator oil field, discovered by well 13/23d-8 in 2013, and the Serenity oil field discovered by well 13/23c-10 in 2019 and for which the Company carries a P50 STOIIP of 197 MMbbls.
(Source: i3 Energy – Image: Blackford Dolphin/ITV)