i3 Energy plc has agreed 25% non-operated working interest farm-in for the Serenity oil discovery to Europa Oil & Gas (Holdings) Ltd.
DISCUSSIONS
Europa’s interest is in a sub-area of licence P2358 Block 13/23c, containing Serenity, for which it recently raised £7 million.
The company will fund a 46.25% paying interest for one appraisal well on the field, after which i3 will retain a 75% operated working interests in the block.
i3 said that the well cost is estimated to be £14m.
Europa’s 46.25% paying interest will be up to a capped gross well cost of £15m.
The companies will pay costs exceeding £15m in proportion to their respective working interests.
The deal is subject to regulatory approvals.
i3 added that discussions continued with a “number of potential companies” interested in a Serenity farm-in and might result in additional working interests in the new Serenity block.
Following the farm-out, i3 will retain a 100% working interest in the remainder of block 13/23c which contains the Minos High prospect and Liberator discovery.
Chief executive Majid Shafiq said that completion of the potential farm-in would enable the drilling of an appraisal well later this year on Serenity.
“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.”