i3 Energy has completed a farm-out agreement with Dublin-based Europa Oil & Gas in the UK North Sea.
Courtesy i3 Energy
Offshore staff
LONDON – i3 Energy has completed a farm-out agreement with Dublin-based Europa Oil & Gas in the UK North Sea.
Europa will acquire a 25% non-operated interest in a sub-area of license P.2358 block 13/23c containing the Serenity discovery, by funding 46.25% of costs for an appraisal well on the field, expected to spud in late summer 2022.
The estimated cost of the well is around £14 million ($18.3 million): Europa's share will be applied up to a cap of £15 million ($19.6 million): any additional costs will be covered by the companies in proportion to their respective working interests.
Completion of the transaction remains subject to Europa funding an escrow account with its paying interest obligation; approval from the UK’s North Sea Transition Authority to the creation of the New Serenity block, and the assignment of the interest to Europa.
Following the farm-out, i3 will retain a 100% interest in the remainder of block 13/23c which contains the Minos High prospect and the Liberator discovery.
