19th Mar 2020 18:39
(Alliance News) - i3 Energy PLC on Thursday said it has entered into a contract with Dolphin Drilling Ltd to use either the Borgland Dolphin or Blackford Dolphin drilling rig for a minimum 82-day programme.
The oil and gas firm said the contract - which is set to begin no later than September 1 - has the ability to be extended for a period of 78 days.
i3 said it has agreed that Dolphin will earn up to a 10% economic interest in Block 13/23c via a net revenue sharing agreement in exchange for Dolphin forgoing its profit margin above its operational expenditure for a maximum amount of USD14.4 million. This commitment, i3 said, will cover roughly 22% of the total expected gross costs of each of the 2020 campaign and option programme.
i3 Chief Executive Majid Shafiq said: "We are delighted to have executed a drilling contract with Dolphin Drilling for our Summer 2020 appraisal programme. Dolphin performed exceptionally well in our 2019 campaign, drilling our wells on time and on budget and without any significant health, safety or environmental issues. Their support announced today not only contributes a significant component to the funding structure for our upcoming drilling campaign but also demonstrates the quality of our licenses."
The stock closed up 15% at 3.87 pence in London on Thursday.
By Arvind Bhunjun; [email protected]
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