Harvard Resources has agreed to acquire i3 Energy’s soon-to-be acquired Saskatchewan assets


The sale, however, is conditional upon the completion of i3 Energy's acquisition of Gain Energy's assets. (Credit: Gerd Altmann/Pixabay)

Oil and gas explorer i3 Energy has signed an agreement to sell part of its Saskatchewan assets in central Canada to Harvard Resources, for CAD45m ($33m).

The sale, however, is conditional upon the completion of the agreement signed last month by i3 Energy to acquire the petroleum and infrastructure assets from Gain Energy for CAD80m ($59m).

i3 noted that the updated 2P reserves of the Gain assets, as of 30 June, are 53.8 MMboe with a before-tax NPV10 of around $182m.

The company stated: “The net consideration for the Gain Assets translates to acquisition metrics of US$2,876/boepd and US$0.48 per 2P boe.”

i3 Energy proposes £30m fundraise

i3 Energy said it plans to fund the acquisition of Gain Energy’s assets by raising £30m from institutional and other investors at a price of 5p per share.

Concurrently, PrimaryBid is running an offer for subscription, allowing i3’s retail shareholders and new investors to participate alongside primary placing participants, the firm noted.

The total funds will also be used by i3 Energy to develop the Gain asset portfolio and for general corporate purposes.

In March 2020, i3 Energy awarded a drilling contract to Dolphin Drilling to deliver and deploy the latter’s semi-submersible drilling rigs in Block 13/23c  in the UK North Sea.

As per the contract, i3 Energy will either use the Borgland Dolphin or Blackford Dolphin drilling rig.

The drilling campaign, which is planned to last a minimum of 82 days, is slated to begin by September 2020 or as otherwise agreed between the parties.