i3 Energy PLC in talks with note holders to amend terms

The firm had been making positive progress with a farm-out process, and in March it unveiled a significant new acquisition

i3 Energy PLC () has told investors that it is in talks with its loan note holders to get consent to waive a condition which would require new funding to be in place by the end of this month.

In a statement, the company noted that a November 2019 extension demanded that i3E Energy, by April 30, entered a reserves-based lending facility or alternative financing to take the Liberator field.

However, the group said: “As the company will not be in a position to enter into such a facility by April 30, the company is in discussions with all noteholders to waive this condition and expects to provide an update to the market prior to April 30.”

READ: i3 Energy agrees Toscana acquisition

In mid-February, before the coronavirus took hold, I3 Energy shares strengthened as the firm reported “good progress” with its North Sea farm-out efforts.

More recently, in March, the company announced a new strategic acquisition, picking up producing assets in Canada at a discount.

i3 inked an option agreement giving it the right to acquire Toscana’s debt and equity for C$3.95mln. The acquired debt amounts to around C$25mln.

The acquisition will add around 4.65mln barrels of proved and probable (2P) reserves, stated as of year-end 2019, which provides some 14.7 years of field life. Production averages 1,065 barrels oil equivalent per day in 2019, generating some C$5.5mln.

The company described the assets as “low-decline, long-life conventional fields”, while they are said to have an average break-even price of US$21.74 per barrel (which is C$30.43 per barrel).


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