Majid Shafiq, CEO of i3 Energy commented:“We are very pleased to announce this conditional further investment in the Company by Lombard Odier, a very supportive existing shareholder, and look forward to imminently closing the Junior Facility to fund this summer’s drilling campaign at our Liberator and Serenity assets.”
i3 Energy plc, an independent oil and gas company with assets and operations in the UK, is pleased to announce that it has entered into binding terms with funds managed by Lombard Odier Asset Management (Europe) Limited for a £3mm participation in the junior loan note facility, the proposed terms of which were announced by the Company on 25th February 2019 (the “Junior Facility” or “Loan Notes”), a £2mm placing of new ordinary shares priced at 37p per share and warrants to subscribe for £3mm of new ordinary shares (collectively the “Lombard Odier Investment”).
The £2mm issue of ordinary shares will be at the same placing price as the Company’s £16mm share placing announced on 12th March 2019 and the £3mm warrants will be on the same exercise terms as the warrants included in the proposed Junior Facility.
The closing of the Lombard Odier Investment is conditional, inter alia, on the closing of the Junior Facility. In light of Lombard Odier’s further £2mm equity investment, it is intended that the Junior Facility will now be downsized from the £24mm previously indicated to £22mm, and the closing of that facility will be the subject of a further announcement.
Subject to the closing of the Lombard Odier Investment and the Junior Facility, the Company will be funded for its summer 2019 drilling programme.
As Lombard Odier is a substantial shareholder in the Company, its investment in the Company is a related party transaction under the AIM Rules for Companies. The Directors of the Company consider, having consulted with WH Ireland, that the terms of the transaction are fair and reasonable insofar as shareholders are concerned.
Notes to Editors:
i3 is an oil and gas development company initially focused on the North Sea. The Company’s core asset is the Greater Liberator Area, located in Blocks 13/23d and 13/23c, containing 11 MMBO of 2P Reserves, 22 MMBO of 2C Contingent Resources and 47 MMBO of mid-case Prospective Resources. The Greater Liberator Area consists of the Liberator oil field discovered by well 13/23d-8 and the Liberator West extension, both of which i3 hold a 100% working interest in.
The Company’s strategy is to acquire high quality, low risk producing and development assets, to broaden its portfolio and grow its reserves and production.
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
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