i3 Energy Plc () told investors that it was not able to enter into a reserves based lending facility of alternative funding facility by April 30, the extended deadline set by noteholders back in November.
Nonetheless, it said that it remains in talks with all noteholders to waive this condition. The group added that it will update the market once these discussions have concluded.
In mid-February, before the coronavirus pandemic 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.