North Sea explorer i3 Energy has started drilling a new pilot well at its Liberator field in the outer Moray Firth.
It is the third and final in a three well campaign i3 is carrying out with the Borgland Dolphin rig.
The pilot will help i3 choose where to drill the future LP-02 production well.
The second well in the campaign revealed a discovery at the nearby Serenity prospect, sending i3’s shares skyrocketing.
I3, based in Westhill, near Aberdeen, hopes to produce from Serenity via the Bleo Holm FPSO, operated by Repsol Sinopec Resources UK.
Read also: i3 Energy seeking collaboration with Repsol Sinopec on new North Sea discovery
The company has also agreed to issue £5 million of equity to the funders of its May 2019 junior loan notes at a price of 35p per share via private placement to provide flexibility to extend the drilling programme.
And deadline by which i3 must enter a reserve-based lending facility or find alternative development financing has been extended from December 6 to April 30, 2020.
Majid Shafiq, chief executive of i3 Energy, said: “We are excited to be drilling again at Liberator on the back of our success at Serenity.
“The A2 location has been selected as a low-risk target in close proximity to Liberator’s two well penetrations, giving us a high-level of confidence when tied into the recently reprocessed seismic that was used to select the Serenity discovery well location.
“The company is also very pleased with the additional funding we’ve received from our Loan Noteholders. Their continued material support shows a great level of confidence in i3’s assets and management team.”
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