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AIM:I3E

i3 Energy PLC

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Market:
AIM
Market Cap:
£6.79 m
Price
6.30 GBX
Change
-10.00%
52 weeks high
59.01
52 weeks low
6.20

Strategy

In the near term, i3 intends to maximise shareholder value through further low-cost appraisal drilling at Serenity to prove up its reserves base, followed by additional drilling and de-risking of the high-relief areas of Liberator West and the Minos High. Following i3’s 2020 drilling campaign, focus will turn to bringing these fields into production, initially via existing and proximal infrastructure. In conjunction with this, the Directors intend to grow the business in the longer term through the further acquisition of development and appraisal assets.

Whilst i3 is focused on entering new ventures at the appraisal, development, production or near field exploration phase, this will not preclude it from considering each new opportunity in terms of relative technical and commercial merits within the context of the overall objectives of the Company. This approach may include divestments, acquisitions, farm-ins, farm-outs and exchanges of interests.

Business Model

Seek

Pursue high quality assets where cycle, situation, or geography offer disproportionate opportunity. Targets must exhibit excellent technical and economic underpinning.

Acquire

Purchase producing or late-stage development assets from companies where required "finish-line" financing, market conditions, or cost of capital provide opportunities with a sizable margin of safety.

Extract

Maximize shareholder value during times of cyclical strength and market sentiment. Remain equally strategic when large valuation gaps exist.

Produce

Actively participate in production and development partnerships to smooth operations, mitigate delivery risk, and preserve project value.

Serenity

Oil discovery in high quality Lower Cretaceous Sandstones with a P50 estimate of 197 MMbbls STOIIP.

Located in the north of block 13/23c, Serenity was discovered by i3 Energy in November 2019 with well 13/23c-10, providing confirmation of i3’s sub-regional subsurface model. It is located between the producing Captain field, to the west, and the undeveloped Tain field immediately to the east.

Well 13/23c-10 encountered a 20ft thick oil-bearing sand (11ft TVT) unit at the top of the Lower Cretaceous Captain sequence. The reservoir quality was high, with porosities averaging 24.5% and oil samples, recovered by wireline, having an API of 31.5°, suggesting that they are very similar to the oil in the Tain and Blake fields. The Serenity reservoir is a pinch-out of the Captain sands against the southern margin of the Halibut Horst, analogous to the Tain and Blake Flank. The sand has 11ft TVT at the 13/23c-10 well and thickens toward the west reaching 115ft TVT in the 13/23a-7z well immediately adjacent to Serenity’s western closure.

The maximum expected oil column of Serenity is 1124ft TVD, from the highest known oil in Tain to the Blake-Liberator-Serenity common OWC, matching i3’s pre-drill predictions and supported by well 13/23c-10 pressure measurements.

i3 is gearing up for a multi-well appraisal programme in the summer of 2020 which will determine the extent of the reservoir thickening to the west and confirm the inferred regional oil water contact. On the basis of information recovered from the 13/23c-10 well, i3 retains its pre-drill P50 estimate of 197 MMbbls STOIIP.

 

Liberator

A high quality oil discovery in Lower Cretaceous Captain Sands reservoir near the producing Blake and Ross Fields

Located in Blocks 13/23d and 13/23c, Liberator was discovered by Dana Petroleum in November 2013 with well 13/23d-8. It is immediately adjacent to the Blake Field and only 2 km from Blake’s producing drill centre.

Liberator was found to have 24-feet of net pay at the top of a 316-foot thick high-quality Lower Cretaceous Captain Sands reservoir with super-high permeability greater than 2 Darcy’s. The reservoir was fully logged with extensive fluid sampling and PVT analysis proving the 30.3° API, 1.9 cP discovery shared similar fluid properties as the immediately adjacent Blake Field.

Post the 2019 Liberator 13/23c-11 well, i3 has re-mapped the entire Liberator structure using new seismic data and believes there is sizeable exploration upside in higher relief opportunities in the west of the structure and the Minos High.

The above table and map are presented to clarify the location of the respective resources ascribed by i3’s management to the Liberator trend, and the contemplated phasing of appraisal and development.

There is capacity for a small Liberator Phase I development of up to 3 wells across the Bleo Holm FPSO.

David Knox
Non-Executive Chairman

David Knox, BSc (Hons) Mech Eng, MBA, FIEAust, FTSE, served as the Chief Executive Officer and Managing Director of Santos Limited from 2008 to 2015, after joining the company in 2007 as the Executive Vice President of Growth Businesses. David has global experience in the Petroleum Industry. Joining Santos in 2007, he was responsible for growth of new businesses including Geoscience and New Ventures, Indonesia and other strategic projects.

Prior to Santos, David served as the Managing Director of BP Exploration and Production in Australasia, having previously held management and engineering roles at BP, ARCO and Shell across Australia, United Kingdom, Pakistan, United States, the Netherlands and Norway.

Majid Shafiq
Chief Executive Officer

Majid Shafiq has 30 years of technical and investment banking experience focused on the global E&P sector.

Prior to joining Àrgentil Capital Partners as CEO in 2015, Majid spent 12 years in energy investment banking advising on asset level acquisitions and divestments, corporate M&A and equity financing for the private and public, small to mid-cap oil and gas sector. During that time he worked for Waterous and Co, Tristone Capital Ltd and latterly with FirstEnergy Capital LLP as Managing Director, Corporate Finance.

Prior to his investment banking career, he worked for Mobil Oil Corporation for 13 years in various petroleum engineering and commercial roles in the UK and the Netherlands. Majid holds a Bachelors degree in Nuclear Engineering from Manchester University, a Masters degree in Petroleum Engineering from Heriot-Watt University and an MBA from London Business School.

Graham Heath
Chief Financial Officer

Prior to co-founding i3 in late 2014, Graham served as VP Corporate Development and later as Interim CFO at Iona Energy from December 2010 alongside Neil Carson.

During his time at Iona, Graham worked with the senior management team to build the company from infancy to 40MMboe of 2P reserves and production above 6,000 boe/day, listing the company on the Toronto Venture Exchange, and structuring equity, debt, and derivative financings in excess of US$670million

Prior to joining Iona, Graham Heath’s 15 year career focused on energy-related tech startups and consulting within Alberta’s Oil and Gas Industry. Between 1998 and 2010, Graham consulted to Colt Engineering, PanCanadian Petroleum, EnCana Corporation and Cenovus Energy. From 2002 to 2006, Graham was Cofounder and VP of Strategic Development for The CO2 Hub – a marketplace created to facilitate the sale and purchase of carbon dioxide and its related purification, compression, storage, and transportation services – designed to foster the aggregation of CO2 supply and demand for its use in enhanced oil recovery. Graham Heath holds a Bachelor of Commerce from the University of Calgary.

Neill Carson
Non-Executive Director

Neill has over 32 years of management and international project experience in the oil & gas industry.

In early 2004, Mr. Carson co-founded Ithaca Energy Inc. where he served as its President and a Director from April 2004 and acted as Chief Operating Officer until late 2007. While at Ithaca, Neill was responsible for asset acquisitions, all aspects of operations and safety, general corporate strategy, and the drilling of four successful oil wells. During his tenure at Ithaca, the portfolio grew to 39 MMboe of proven plus probable reserves and was on plan to deliver 8,000 boe/day of production. Neill founded Iona Energy Inc. in late 2007 where he served as Chief Executive Officer until his departure in mid 2014 to form i3. Responsible for all aspects of corporate strategy and portfolio development, he grew Iona to 40 MMboe of 2P reserves and saw peak production of 6,700 boe/day.

Prior to Ithaca Energy, Neill spent 23 years at BP Amoco and was responsible for numerous exploration, development and production.

Richard Ames
Non-Executive Director

Richard brings to the i3 board 35 years of broad range experience in the oil and gas industry with senior executive roles in full-cycle oil and gas exploration and production, information technology and oil and gas services.

He has held several Vice President positions in TNK-BP, Sidanco, and Amoco, where he was responsible for government liaison, the implementation of business strategies and the management of exploration and new venture projects. He has recently held Board and Advisory Board of Director positions in Iona Energy, Accenture Russia, the Kiawah Conservancy, and DataSpace. Richard graduated from Duke University with a Bachelor of Science degree in Geology, and from the University of Georgia with a Master of Science in Geology.

He joined Amoco in 1981 and worked as a geologist responsible for reserve definition in several international petroleum basins including the North Sea.

Linda Beal
Non-Executive Director

Linda has over 30 years’ experience advising international E&P clients and since 2016 has been a board member of numerous companies. As a director of other small cap natural resources businesses, she brings corporate governance and financial expertise and experience as Audit Committee Chair.

Linda joined Grant Thornton in 2013 as a Tax Partner and was Global Leader for Energy and Natural Resources, mandated to build its global energy and natural resources capability. Previously, Linda spent 30 years at PwC and its legacy firm Price Waterhouse in Audit and Tax, 16 of them as a Partner. Launching PwC's Natural Resources Independents business in the mid-2000s, she focused on advising international E&P clients across the AIM, FTSE350, overseas listed and private sectors.

Linda graduated in 1982 from the University of Nottingham with a BSc (Hons) in Mathematics, thereafter qualifying at Price Waterhouse as a Chartered Accountant in 1985.

Telephone

+44 (0)1224 945 980
Last Updated 22/01/19

 

Head Office

11 Abercrombie Court
Prospect Road
Arnhall business Park
Westhill
AB32 6FE

 

Financial PR

[email protected]

NOMAD
WH Ireland Limited
24 Martin Lane
London
EC4R 0DR

Independent Auditor:
PKF Littlejohn
1 Westferry Circus
London
EC14 4HD

Solicitors:
Burness Paul LLP
50 Lothian Road
Edinburgh
EH3 9WJ

Financial PR:
Camarco
107 Cheapside
London,
EC2V 6DN

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NOMAD
WH Ireland Limited
24 Martin Lane
London
EC4R 0DR

Joint Broker:
GMP First Energy
85 London Wall
London
EC2m 7AD

Independent Auditor:
PKF Littlejohn
1 Westferry Circus
London
EC14 4HD

Solicitors:
Burness Paul LLP
50 Lothian Road
Edinburgh
EH3 9WJ

Financial PR:
Camarco
107 Cheapside
London,
EC2V 6DN