i3 Energy has entered into a drilling contract with Dolphin Drilling to utilise either the Borgland Dolphin or Blackford Dolphin semi-submersible drilling rig for a minimum 82-day programme offshore UK.
The contract is due to commence by September 2020, and may also be extended for a period of 78 days.
The project is for the drilling of two appraisal wells on Serenity plus a sidetrack on each well, contingent on drilling outcomes, at a total expected gross cost of around $33m. The option includes wells on the Minos High structure and the Liberator West area in Block 13/23c.
I3 says the contract is conditional on the availability of funds to satisfy its obligations under the contract, 90 days prior to drilling commencement.
i3 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 Opex, up to a maximum amount of $14.4m.