If successful in selling its plans to develop the 16 million barrel (2C) Liberator field via a successful initial public offer, it would be a further sign that the outlook for entrepreneurial oilers may be improving after a horror three years.

 

I3 was set up by Ithaca co-founder Neill Carson alongside chief financial officer Graham Heath, who was vice president of corporate development and interim CFO while working Carson at Iona Energy.

 

Knox had a long career with the likes of BP and Shell before arriving at Santos in 2008, where he pushed the Adelaide-based oiler into the CSG-LNG space.

 

Non-executive directors Majid Shafiq and Richard Ames round out the board.

 

Assuming a successful listing, i3 is aiming to launch straight into the development of Liberator

 

It says within 12 months the Liberator field could be producing 7300 barrels of oil per day next year by piggy-backing off some of the UK's existing infrastructure, specifically the Sinopec-operated Blake platform and Bleo Holm FPSO, although no agreement has been finalised so far.

 

While i3 says it believes it has a good case to access the facilities, with the backing to the UK government's push to maximise economic recoveries, and it believes Liberator's development will dovetail in with Sinopec's plans, it cannot be certain it will finalise an agreement.

 

Knox's confidence is demonstrated by the signing of heads of terms to drill two development wells on the prospect with driller Diamond Offshore, Baker Hughes and Petrofac.

 

In a sign that offshore companies are desperate for work the parties have agreed in principle partial deferral of capital expenditure beyond first oil

 

The junior said the capital raising will be focused on the development, although some funds would be used for near-term exploration and appraisal, looking at possible extensions to Liberator and the capture of adjacent acreage.

 

It will try to capture the Liberator North West structure, which is within open acreage, and is working to secure the Liberator Main and Liberator NE structures that extend into nearby blocks.

 

Beyond Liberator, the company says its strategy is to focus on the development of discoveries located close to existing infrastructure, and its exposure to exploration will be limited. 

 

"We have a strong technical team with significant North Sea expertise and an excellent track record of delivering development projects in the area," Carson said in a statement.

 

"We are hugely excited by the opportunity we see in the UK North Sea and are confident that we have the right team and strategy to bring the high-quality Liberator field cluster into development and grow the business through our targeted acquisition strategy."

 

Heath said the company had been pleased with support from existing shareholders to date, which he said was a strong endorsement of its move to capture North Sea assets ahead of its Alternative Investment Market listing, which is expected to close within weeks.

 

The company secured Liberator, in the Outer Moray Firth, from Dana Petroleum last year for £6 million ($A10.5 million).

 

Dana discovered the field in 2013.