The firm had been making positive progress with a farm-out process, and in March it unveiled a significant new acquisition
i3 Energy PLC () has told investors that it is in talks with its loan note holders to get consent to waive a condition which would require new funding to be in place by the end of this month.
In a statement, the company noted that a November 2019 extension demanded that i3E Energy, by April 30, entered a reserves-based lending facility or alternative financing to take the Liberator field.
However, the group said: “As the company will not be in a position to enter into such a facility by April 30, the company is in discussions with all noteholders to waive this condition and expects to provide an update to the market prior to April 30.”
READ: i3 Energy agrees Toscana acquisition
In mid-February, before the coronavirus took hold, I3 Energy shares strengthened as the firm reported “good progress” with its North Sea farm-out efforts.
More recently, in March, the company announced a new strategic acquisition, picking up producing assets in Canada at a discount.
i3 inked an option agreement giving it the right to acquire Toscana’s debt and equity for C$3.95mln. The acquired debt amounts to around C$25mln.
The acquisition will add around 4.65mln barrels of proved and probable (2P) reserves, stated as of year-end 2019, which provides some 14.7 years of field life. Production averages 1,065 barrels oil equivalent per day in 2019, generating some C$5.5mln.
The company described the assets as “low-decline, long-life conventional fields”, while they are said to have an average break-even price of US$21.74 per barrel (which is C$30.43 per barrel).