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i3 Energy and Europa team for Serenity project in North Sea

Published: 03:25 03 Mar 2022 EST

i3 Energy PLC - i3 Energy and Europa team for Serenity project in North Sea

i3 Energy PLC (AIM:I3E, TSX:ITE, OTC:ITEEF) and Europa Oil & Gas (Holdings) PLC (AIM:EOG) each described themselves ‘delighted’ as they partnered up in the Serenity project in the UK North Sea.

Serenity is an appraisal and development opportunity, in which Europa is earning a 25% stake by paying 46.25% of the cost of a well.

i3 told investors that it has held talks with a number of other interested parties and that those talks are ongoing, and, may result in the farm-out of further stakes in the project – meanwhile, it retains a 100% interest in the nearby Minos High and Liberator projects.

"i3 is delighted to announce this potential farm-out which on completion will facilitate the drilling of an appraisal well on the Serenity oil field later this year,” said Majid Shafiq, i3 chief executive.

“This well will provide critical information which will help us to delineate the size of this potentially very large discovery and move it towards development.”

Simon Oddie, Europa chief executive, in a separate statement, added: “Serenity is a late-stage appraisal and development asset that provides our shareholders with exposure to a very exciting asset that could deliver significant near-term value to our shareholders with the drilling of the Serenity appraisal well expected during Q3 of 2022.

“It is a welcome addition to our existing producing and high impact exploration assets and part of our long-term strategy to create a balanced portfolio of high-quality assets with the view of creating long-term value for our shareholders."

Europa this morning confirmed it had raised just over £7mln through equity funding to facilitate the acquisition. It sold some 390mln new shares priced at 1.8p each, subject to shareholder approval at an EGM slated for March 25.

The Serenity well is estimated to cost around £14mln to drill, with Europa paying 46.25%, though the agreement between i3 and Europa would see each party pay pro-rata share of the costs above a threshold of £15mln.

The transaction remains subject to approval by the UK Oil and Gas Authority along with other regulatory approvals.

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