i3 Energy PLC - Gain Energy Ltd. Production Acquisition
("i3" or the "Company")
In reference to the Company's announcement of
· During 2019, the Assets produced at 11,020 boepd and generated
· The Assets would add 26.4 MMboe PDP and 69.4 MMboe 2P reserves to i3's portfolio
· The consideration to be paid for the Assets is
· The Transaction is a reverse takeover under the AIM Rules for Companies and is subject to i3 shareholder approval. The Company's shares are currently suspended from trading on AIM until it either publishes a "Readmission Document" detailing the Transaction or provides confirmation that the Transaction will not complete.
Transaction and Readmission
Under the PSA, i3 will be acquiring the Assets free of all encumbrances (apart from industry standard or acceptable permitted encumbrances) for cash consideration of
The Company is closely following the global energy transition towards carbon neutral energy sources, and i3 intends to be a proactive participant in this critical endeavour. A major attraction of the Transaction is Gain's interest in the oil-producing
The required details of the Transaction will become part of a Readmission Document. As the Transaction is classified as a reverse takeover in accordance with the AIM Rules for Companies, at the request of the Company, its shares were suspended on
Completion of the Transaction remains subject to i) financing to raise the cash consideration and working capital, ii) industry standard conditions precedent, and iii) i3 shareholder approval. The Company is in discussions with its investors and brokers and is seeking funding for the Consideration and general corporate purposes.
Qualified Person's Statement
In accordance with the AIM Note for Mining and Oil and Gas Companies, i3 discloses that
The information contained within this announcement is deemed by the Company to constitute inside information under the Market Abuse Regulation (EU) No. 596/2014.
Glossary of oil and gas terms, in accordance with standards contained in the Canadian Oil and Gas Evaluation (COGE) Handbook:
Proved reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.
Probable reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.
Proved Developed Producing (PDP) Reserves
Those reserves that are expected to be recovered from completion intervals open at the time of the estimate. These reserves may be currently producing or, if shut-in, they must have previously been on production, and the date of resumption of production must be known with reasonable certainty.
Total Proved Reserves plus Total Probable Reserves
This information is provided by RNS, the news service of the
Quick facts: i3 Energy PLC
Market Cap: £29.57 m
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