i3 Energy Plc (LON:I3E) believes there is substantial value to be created in the UK North Sea through the development of small and mid-sized fields, in the vicinity of aging but well-maintained infrastructure.
Reporting full-year 2018 results on Friday, the company said that such satellite developments - like its Liberator project - adhere to guidance provided by the Oil and Gas Authority in regards to maximising economic recovery from the UK's resources and the company continues to work closely with the regulator.
The firm also noted that it achieved several key project milestones in 2018, including the addition of the Liberator West licence block, increased contingent resources, a raising of funds, and the redefinition of the Liberator development plan to include the extension area.
It said the planned work programme for Liberator Phase 1 was adjusted to include two development wells to meet the commitments of Liberator West.
“During 2018, i3 recognised substantial improvements to its oil and gas reserves and resources, balance sheet and ability to fund its operations,” the company added.
“We have additionally made significant progress towards our goal of delivering material returns through the development and appraisal of a much-enlarged Liberator oil field and are now looking forward with anticipation to a company-making 2019, having executed a multi-well drilling rig contract and agreeing the key offtake terms for Liberator Phase I hydrocarbons.
“Though the development of Liberator and appraisal of Serenity are at present all-consuming, the company continues to consider growth beyond our existing portfolio,” i3 Energy said.
In terms of the financial results, the company reported a £1.95mln loss for 2018 with the majority of the deficit resulting from day-to-day operations and expenses relating to its stock option scheme. The company ended December with cash of £598,039.
In a separate statement later, i3 Energy also announced an amendment to the terms of the participation in its junior loan note facility by substantial shareholder Lombard Odier Asset Management (Europe) Limited, first announced on 30 May 2019.
The group said the issue of warrants to Lombard to subscribe for £3mln of new ordinary shares has been amended to warrants to subscribe for £2mln of new ordinary shares. It added that all other terms of the investment remain the same.
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