i3 Energy Plc (LON: I3E) have seen their shares rocket after a potential groundbreaking discovery made at its Serenity oilfield in the UK central North Sea.

The UK-focused oil and gas firm said the Serenity 13/23c-10 well, located on its completely owned Serenity compound had preliminary well results consistent with i3’s 197 million barrels stock tank original oil-in-place for the Serenity closure in the licence area.

This potential phase one development will target 63 million barrels, through four wells ensuring that i3’s revised expected recoverable reserves stands at 23 million barrels.

Phase two will target 396 million barrels STOIIP via further exploration drilling.

i3 have extended their rig contract with Borgland Dolphin following this discovery.

The two firms have agreed a deferred payment structure, giving right on first refusal on the Borgland Dolphin semi-submersible rig through to the end of January 2020.

Borgland Dolphin have also said they will defer payments into early 2020, giving i3 enough funding for the remainder of its 2019 operations, including the three well drill campaign.

i3 have issued 2.2 million warrants to subscribe for shares priced at 56.85p to GE UK as payment for oilfield services.

i3 Energy Chief Executive Majid Shafiq said: “The discovery of the Serenity oilfield, a potentially very large oil resource, is a transformational event for i3 Energy plc.

He added “We now have proven oil in a second structure on our licenses. It is the culmination of three years of detailed geological and reservoir analysis and validates our regional model for the Liberator and Serenity oilfields and neighboring structures. We will now integrate data from the 13/23c-10 well into our geological modelling as we develop an appraisal and development plan for Serenity, which we believe is connected to the undeveloped Tain oilfield”

Shafiq concluded “This result also adds confidence to our revised mapping of the Liberator field, which utilises the same reprocessed seismic dataset now used to map the Serenity field, and integrates data from the recently drilled 13/23c-9 Liberator well. We now look forward to returning to Liberator where we’ll continue the necessary drilling operations to progress that field towards development.”

Currently, shares of i3 energy are trading at 41.45p per share, seeing a huge rise of 48.04% during Tuesday trading. 29/10/19 11:19BST.

Elsewhere in Oil and Mining sector updates have been provided. Tower Resources have pursued a new joint venture, Baron Oil (LON: BOIL) have seen their share price dip, Nostrum Oil and Gas (LON: NOG) face revenue shrinks and Hunting (LON: HTG) have speculated on lower profits.

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