RE:Share priceI3e has difficulties to deliver and to get more financing
UK renegotiation
The prospect of material Canadian production and cashflows should assist i3’s UK position. The firm was unable to meet an end of April deadline in its loan notes to enter into a reserve-based lending (RBL) facility or find an alternative means of funding to achieve first oil from the Liberator field.
But the majority noteholders have agreed to waive this condition as long as, by end of September, i3 has secured firm commitment for a minimum of £15mm of unsecured or fully subordinated financing, agreed a farm-out and/or funding term sheet to fund the drilling of at least one appraisal well on its Serenity discovery during 2020 or 2021, or executed an acquisition agreement for at least 2,500bl/d oe of production net to i3.
In addition, the firm is obligated to raise production to or above 5,000bl/d oe by the end of April 2021. The Toscana deal will be a step on the road to achieving those production targets, while the proposed follow-on acquisition would take i3 beyond where it needs to be.
In March, i3 said it had begun a farm-out process for its UKCS assets. “These efforts remain ongoing and engagement continues with potential farm-inees,” it updated on Tuesday.