North Sea firm i3 Energy has executed a key part of a deal to dish out a 25% stake in its Serenity field.
The Westhill-based company has finalised a farm-in agreement (FIA) with Europa Oil and Gas for a non-operated working interesting in the “company making” project.
Europa recently completed equity fundraising to cover its 46.25% share of the cost for the upcoming Serenity appraisal well.
In return it will receive a 25% interest in the North sea field.
The well is expected to cost around £14 million, and Europa will cover the tab up to £15m.
Any costs that exceed that figure will be paid by the companies in proportion to their respective working interests.
I3 (LON: I3E) expects to spud the well towards the end of the third quarter.
The London and Toronto-listed firm will retain a 100% working interest in the remainder of Block 13/23c, which also contains the Minos High prospect and Liberator discovery.
It is hoping for 100 million recoverable barrels from Serenity, which is located in the central North Sea.
Majid Shafiq, chief executive of i3 Energy plc, said: “i3 is delighted to announce the execution of the farm-in agreement with Europa and we will now commence the detailed planning and permitting process for the Serenity appraisal well, which we now expect to spud in late Q3 this year.”
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