I3E – Operational Update

i3 Energy plc, an independent oil and gas company with assets and operations in the UK, is pleased to announce the following operational update and the release of a new corporate presentation via the Company’s website (https://i3.energy/investor-relations/reports-and-presentations/).

Presentation Highlights

In November 2017, i3’s independent competent person, AGR Tracs International Limited (AGR), attributed a mid-case STOIIP of 237 MMbbls to i3’s 100% operated interest in UK North Sea Blocks 13/23d and 13/23c. Based on the Company’s subsequent mapping and analysis, i3 believes the mid-case STOIIP to be 314 MMbbls, and the Company will be submitting a revised and enlarged field development plan (FDP) to the OGA before the end of 2018.

The previously submitted FDP envisaged a staged, two-well development which focused solely on the development of Liberator field area reserves located within Block 13/23d. With the May 2018 award of Block 13/23c to i3 Energy in the UK’s 30th Offshore Licensing Round, the Liberator development has necessarily grown to include the material western extension of the field into Block 13/23c. An appraisal well will therefore be drilled to validate the current mapping of the field extension, convert contingent resources to reserves, and help determine the location of the second of two initial development wells to either be positioned in the east of the field in Block 13/23d or in the centre of the field in Block 13/23c. i3 plans to drill the first production well and appraisal well in summer 2019, followed by an evaluation of the appraisal drilling results to optimise the location of the second development well. This second well would be drilled the following spring with start-up expected in summer 2020 following the installation of subsea infrastructure, initially producing from two wells targeting rates up to 20,000 barrels of oil per day. Subject to reservoir performance, the Company would drill a third Phase I development well, in advance of undertaking further seismic processing and appraisal of Block 13/23c to prepare for a subsequent Phase II Liberator development.

The Company is also pleased to announce its ongoing assessment of a northern structure in Block 13/23c that it is calling the Serenity prospect. Serenity is an amplitude supported feature that has an areal extent of 10 km2 (compared to Liberator’s areal extent of 9 km2) and is interpreted to be the westerly extension of the Tain discovery into Block 13/23c. The Tain discovery well, drilled in September 2005, encountered 32° API oil in Captain and Coracle sands and was subsequently appraised by three wells. Serenity provides i3 with exposure to low cost and potentially high return exploration upside that could be tied in to either its Liberator Phase I or incremental Phase II infrastructure.

Majid Shafiq, CEO, commented

“We are very pleased with the progress we are making to maximise the on-block resources in Blocks 13/23c and 13/23d and look forward to a very busy period as we move Liberator towards production and exploit the significant upside potential of our acreage.”