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i3 Energy sets sights on first oil as losses widen
Oil and gas production and development firm i3 Energy announced on Friday that it remains focused on the development of the North Sea Liberator field, as the company reported widening losses.
The AIM traded company reported pre-tax losses for the year ending 31 December were £2.9m, up from £404,000 in 2016, and highlighted its successful private placement that raised £4.2m for the development of the offshore field.
I3 also confirmed that it received non-binding terms from UK lenders for an £18.8m credit facility to further fund Liberator.
After the field saw a reclassification and upgrade of its resources to 11.7mmboe in 2017, the company plans to develop it into an "optimised drill centre" and has submitted plans for this to the oil and gas authority.
Neill Carson, chief executive of i3 Energy plc, said: "The strong technical underpinning of Liberator combined with the deliverability of the project has attracted investment from private and institutional investors, in addition to drawing meaningful interest from senior lenders and potential joint venture partners. We look forward to the remainder of 2018 with excitement as we aim to unlock Liberator's full potential."
As well as targeting first oil at liberator in 2018 and seeking joint venture partnerships, Carson said the company will also be on the lookout for acquisitions which can boost shareholder value.
"2017 has been a year in which solid foundations were laid for the future success of i3 Energy. Our team has deepened its understanding of the high-quality nature of our 100% owned and operated Liberator oil discovery and we remain focused on the advancement of this asset," said Carson.
The company said that continuing increases in commodity prices stand the Liberator field and other satellite developments in good stead as i3 Energy pursues commerciality.
As of 1011 BST, i3 Energy's shares were down 1.82% at 109.96p.