I3 Energy has completed a farm-out of a 25% working interest in its Serenity field to Europa Oil and Gas.
It follows the fulfilment of all conditions in the agreement between the two companies.
Under the terms of the deal, Europa will fund 46.25% of the cost of the upcoming Serenity appraisal well up to a gross capped well cost of £15 million.
Any costs above that will be funded by the companies in proportion to their respective working interests.
First announced in April, the agreement between the two firm is for a share in Block 13/23c North, Licence P2358, which contains the Serenity discovery.
The “company making” prospect is due to be spudded towards the end of the third quarter.
Following the farm-out, i3 (LON: I3E) retains a 75% working interest in the area, and a 100% working interest in Block 13/23c South, Licence P2358, which contains the Minos High Prospect and Liberator discovery.
Majid Shafiq, chief executive of i3 Energy, said: “We are delighted to have successfully completed the farm-out agreement for Serenity and to welcome Europa as our joint venture partner in the discovery. The next significant step is to drill the appraisal well, which is on track for spud in September.
“The well will help us delineate the size of the field and provide the critical information required to formulate an effective development plan for a potentially very large oil field. We look forward to updating the market on our progress at what is an exciting time for i3’s North Sea acreage.”
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