‘Company-maker’ Serenity discovery disappoints at appraisal for i3 Energy

i3 Energy (LON: I3E) has announced “disappointing” results for the hotly-anticipated appraisal of its Serenity discovery in the North Sea.

London and Toronto-listed i3 had been hoping to shore up an estimated 100million recoverable barrels from Serenity, about 80 miles off Aberdeen.

Hydrocarbons were “not present” at the 13/23c-12 appraisal, having been drilled to a total depth of 5,630 ft below sea level.

Shares in i3 are down 11% as of 8.10am to 24.3 pence.

I3 said over 100-ft of hydrocarbon-bearing Captain sands were found in “various sequences” but were saturated with water.

The targeted rocks, Lower Cretaceuos Captain sand, had contained oil and gas in the 13/23c-10 well, which made the discovery in 2019, but were not found in this latest well.

Still planning to develop

i3 Energy CEO Majid Shafiq previously suggested Serenity would be a “company-maker” for the Westhill-headquartered firm.

Despite the results, he indicated there is still a way forward for the field.

“Whilst this result is disappointing, we and Europa (having satisfied the farm-in conditions) will use the data recovered to improve our understanding of the Serenity field and the architecture and geometry of the Captain sand reservoir intervals.

“The data will also improve our understanding of the extent and geometry of the oil-bearing sand found in the 13/23c-10 discovery well. This will allow us to proceed with the planning and evaluation of a preferred development option, initially focussed on the eastern area of the mapped structure around the discovery well.”

The total cost of the well is £10.4m, £4.8m of which is being covered by Europa Oil and Gas which owns a 25% stake in the well.

Executed by Stena Drilling’s Stena Don, the well will now be plugged and abandoned.

Europa CEO Simon Oddie said the results have “improved our understanding” of the Serenity field and the data “will help us establish a suitable development plan to maximise the value of the already discovered resources within the eastern area of the Serenity field”.

11.56: This article previously said the well was drilling by Dolphin Drilling. It has been amended to clarify that the Stena Don rig carried out the work.