: Unlocking material value in the UK North Sea · : CORPORATE UPDATE JANUARY 2019 5 Serenity Prospect 13/23c 13/23d Tain Discovery Serenity Prospect Liberator Development & Appraisal

: CORPORATE UPDATE JANUARY 2019

: Unlocking material value in the UK North Sea

i3 ENERGY (LON:i3E)

: CORPORATE UPDATE JANUARY 2019 2

Forward looking statements

This presentation contains forward-looking statements and information that both represent i3 management's current

expectations or beliefs concerning future events and are subject to known and unknown risks and uncertainties.

A number of factors could cause actual results, performance or events to differ materially from those expressed or implied by

these forward-looking statements.

Unless otherwise stated, references to reserves, resources, production, and economic figures are based on i3 management’s un-

risked Mid-case estimates. They are preliminary pre-drill figures and are subject to change. All plans are subject to i3 funding

capacity.


3

Introduction to i3 Energy

TEAMProven North Sea team with history of delivering

overlooked opportunities – strong shareholder

alignment owning over 40% of the company

DEVELOPMENT

Liberator Phase I drilling expected to begin summer

2019 with first oil mid-2020 at circa 20,000 bopd;

robust economics of US$602MM Pre-tax NPV10,

US$367MM post-tax at $65 Brent

GROWTHHigh impact summer 2019 appraisal programme

intended to de-risk 511 MMbbls STOIIP from Liberator

field and Serenity prospect

FUNDINGJV process underway (bid date late February) and

indicative terms being agreed with lenders for c.US$100-

130MM development/appraisal facility


Neill Carson, Non-executive Director & Co-founderPrincipal Founder and Executive of both Iona Energy (CEO) and Ithaca Energy (COO)

• Constructed portfolios totaling 75+ MMboe with production of 20 kboepd

35 years international oil & gas experience

• Geophysicist and manager in Europe, Latin America, Middle East, Far East at Amoco/BP

• Discovered 400 MMbbl oil field in the UK

Executive & Board

Graham Heath, CFO & Co-founderVP Corporate Development and Interim CFO at Iona Energy

• Go-public listing of Iona via RTO in 2011, structured total financing of $670 MM in North America and Europe

19 years oil & gas experience

• Consultant to PanCanadian Petroleum, EnCana Corporation, Cenovus Energy

• Co-founded energy-related tech startups focused on enhanced oil recovery

David Knox, Non-executive ChairmanChief Executive Officer and Managing Director of Santos Limited from 2008 to 2015

Global experience in the Petroleum Industry

• Managing Director of BP Exploration and Production in Australasia

• Management and Engineering roles at BP, ARCO and Shell across Australia, UK, Pakistan, United States, Netherlands

and Norway

Majid Shafiq, CEO30 years technical and investment banking experience focused on the global E&P sector

• i3 Energy Non-executive Director from July 2017 to October 2018

• CEO of Àrgentil Capital Partners (UK) Limited, Managing Director at FirstEnergy Capital LLP, MD at Tristone, Director at

Waterous and Co.

• 13 years at Mobil Oil Corporation in engineering and commercial roles in the UK and the Netherlands

Richard Ames, Non-executive Director34 years broad range experience in the oil and gas industry with senior executive roles in full-cycle oil and gas E&P

VP positions in TNK-BP, Sidanco, and Amoco

• Responsible for government liaison, implementation of business strategies, exploration, new venture management

• Joined Amoco in 1981 as geologist responsible for reserve definition in international petroleum basins including the

North Sea


Serenity Prospect

13/23c 13/23d

Tain

Discovery

Serenity Prospect

Liberator Development & Appraisal

• Amplitude supported feature on trend

with Tain discovery

• Tain discovery encountered 32° API oil

in Coracle and Captain sands,

subsequently appraised by three wells

• i3 estimates 197 MMbbls STOIIP based

on conservative oil column thickness

• Summer 2019 drilling provides

exposure to low cost/high return

exploration/appraisal upside

• 100% i3 operated interest in near term

production and low risk appraisal

• World class Captain reservoir with fluid

properties analogous to neighbouring

prolific Blake field

• Mid-case discovered, contingent and

prospective resources of 314 MMbbls

STOIIP, recoverable of 146 MMbbls

• Highly attractive project economics

• Phase I NPV10: US$602MM Pre-tax,

$367MM Post-tax

• Phase II NPV10: US$2.5B Pre-tax,

US$1.5B Post-tax

Assets: 100% interest in Liberator and Serenity

i3’s 100% operated interest

in 13/23c and 13/23d


Q1 2019

Received

Dec ‘18

MOU

executed

Junior Loan Doc’n

Liberator L2

production well

On A3 and/or S1 success, begin

Phase II OGA consultation

A3 and S1 de-risk potential STOIIP of 511 MMbbls

2019 Objectives

RSRUK Phase I Offtake Terms

Alternative Phase I FPSO

Dolphin Drilling Semi-sub Rig

$100-130MM Debt Facilities

Ongoing JV Process

Field Development Plan

Resources and Reserves

Q2 2019 Q3 2019 Q4 2019

Liberator

A3 well

New

CPR

Targeting a catalyst rich 2019

LOI

signed

Serenity

S1 well

Set bid

date

Partner

SelectionMP/VDR

Agree

TermsSenior Facility Documentation

Final Concept SelectFinal Approval and OGA

Consent

Junior Facility expected to substantially

fund c.$41MM drilling campaignSenior debt funds c.$90MM to 2020 FO

Finalize JV

Agreements

Putting all building blocks in place to target mid-2020 first oil from Liberator Phase I

• Finalizing terms received from offtake providers for Liberator Phase I production

• LOI signed for summer 2019 three-well drilling campaign using the Blackford Dolphin or Borglund Dolphin semi-submersible rig

• A3 appraisal well expected to de-risk 314 MMbbls STOIIP, S1 to confirm potential 197 MMbbls STOIIP at Serenity, L2 unlocks

senior debt

• Expecting to set February bid date for JV process started in November 2018

• Negotiating senior and junior debt facilities for c.US$100 to $130MM, with 25% expected accessible for 2019 drilling programme

• Finalizing Liberator Phase I concept selection process for FDP approval

Agree CTIA and

TPOSA

Finalize Bareboat

Charter, O&M


Transformational growth potential

+1450%

i3’s summer 2019 three-well drilling

programme underpins Liberator

Phase I development and potentially

de-risks over 200 MMbbls of

recoverable resources from the

Liberator field and Serenity prospect

i3’s summer 2019 three-well drilling

programme underpins Liberator

Phase I development and potentially

de-risks over 200 MMbbls of

recoverable resources from the

Liberator field and Serenity prospect

Summer 2020 delivery of

Liberator Phase I provides

organic, cash-flow driven

development of Liberator

Phase II and Serenity (upon

successful 2019 summer

appraisal)

Liberator Phase I(1)

Liberator Phase II

Serenity

Phase I production cash flow funds Phase II and Serenity

1. Liberator Phase I 2020 production annualized for mid-year first oil (initial production rate expected to be c.20,000 bopd)


Liberator phase I field development plan

• Phase I FDP revised to optimise well locations

• Offtake terms received from two infrastructure owners:

• Terms received from RSRUK (December 2018) for offtake via

Bleo Holm; to be agreed Q1 2019

• Alternative standalone FPSO under MOU

• FDP approval and FID Q1/Q2 2019

• Rig under LOI for summer 2019 campaign using either Blackford or

Borglund Dolphin semi-sub for first development well (L2) and

appraisal well (A3) drilled in summer 2019

• Second development well and pipeline installation to be completed

early 2020 with first oil expected summer 2020

• Phase I targets c.13 MMbbls 2P reserves and 8 MMbbls 2C

contingent resources with planned initial flow rates of c.20,000

bopd

• Horizontal wells completed with standalone sand screens,

analogous to successful Blake field completions, with the addition

of proven inflow control devices

• Well placement to be optimised via Logging-While-Drilling (LWD)

geo-steering technology

• Minimal modification required on Bleo Holm FPSO to accommodate

Liberator production, with standalone FPSO also deliverable on i3’s

2020 first oil timeline

• Contracts executed for Xmas trees and subsea wellheads

John Woods, i3’s Chief Developments Officer with Liberator Xmas Tree


Liberator cluster - subsurface overview

OWC = 5270 ft

K50

Liberator

13/23d-8 well

Shale

Valhall Shale

Phase II EastPhase II West Blake Field

• Gross thickness in excess of 300ft

• Net to gross of ~98%

• Average porosity of 28% and permeability ranging from 1500 - 3300 mD

• Discovery well 13/23d-8 encountered a 24ft hydrocarbon column – sand thickness materially increases moving westward from

discovery well through Phase I and into Phase II capture area

• Fluid properties indicate under-saturated oil of similar quality to Blake field; 30.3° API, 1.9 cP viscosity at reservoir conditions and

a GOR of 341 scf/stb.

• OWC at 5270ft TVDSS, confirmed by logs and MDT, consistent with Blake OWC and regional analogue data

Phase I

metres

TV

DS

S f

t

A3


Phase II: Liberator West plus Serenity

Serenity Prospect

• Serenity S1 appraisal well being drilling in summer 2019

• Provides exposure to low-cost, high-impact upside with tie-in

potential to Liberator Phase II infrastructure

• Interpreted as the westerly extension of the Tain Discovery into

Block 13/23c

• The Tain discovery encountered 35° API oil in Coracle and

Captain sands and was subsequently appraised by three wells –

well 13/23b-5z tested and flowed at a rate of 6,700 bopd

• i3-estimated STOIIP of 197 MMbbls based on conservative

assumptions regarding oil column thickness

Liberator Phase II Appraisal and Development

• Regional analysis has identified a material extension of the

Liberator accumulation to the North West

• AGR independently assessed 22 MMbbls 2C contingent

resources and 47 MMbbls Mid-case prospective resources in late

2017 (see Appendix)

• A3 appraisal well intended to de-risk 42 MMbbls contingent

resources and 90 MMbbls prospective resources in Liberator’s

Phase II extension

• Conceptual design for 4 wells (3P + 1WI) via standalone FPSO

produces multi-billion dollar NPV10s under highly compelling

economic metrics

• Phase II can be organically funded from Phase I cash flow

S1


11

Investment highlights

UNLOCKING

POTENTIAL

Targeted summer 2019 drilling programme expected to

unlock senior debt facility, de-risk 314 MMbbls STOIIP at

Liberator, confirm 197 MMbbls STOIIP at Serenity

NEAR-TERM

PRODUCTION

Liberator Phase I expected to come on mid-2020 at circa

20,000 bopd from two concurrent producers, third Phase I

producer to follow in 2021

COMPELLING

ECONOMICS(1)

STRONG

TEAM

i3 manned by North Sea veterans with a history of

unlocking previously overlooked hydrocarbons such as

Liberator and Serenity

Pre-tax NPV10s of US$602MM and US$2.5B respectively

for Liberator Phase I and II(2) offer significant upside from

current market cap

1. Assumes $65/bbl flat Brent deck

2. Liberator Phase II requires successful A3 appraisal in summer 2019


Appendix


AGR Tracs Competent Persons Report (Nov 2017) (1)

Phase IReserves

1P 2P 3P

STOIIP 18 38 58

RF% 22% 28% 29%

Recoverable (MMbbl) 4 11 17

Phase II WestProspective Resources

Low Mid High

26 135 329

20% 35% 50%

5 47 165

56% chance of commerciality(2)

Phase I and II TotalReserves + Resources

Low Mid High

48 237 490

21% 34% 48%

10 80 234

Phase II EastContingent Resources

1C 2C 3C

4 64 103

20% 35% 50%

1 22 52

70% chance of commerciality(2)

Liberator Phase I – Strong 2P Reserves base

• Phase I targets c.11 MMbbls 2P reserves based on

two producer development from within Block

13/23d only

• Phase I pre-tax NPV10 of $328mm with 211% IRR,

post-tax NPV10 of $200mm with 160% IRR

Liberator Phase II – Highly strategic resources

• A3 appraisal well de-risks 22 MMbbls 2C

contingent resources and 47 MMbbls Mid-case

prospective resources

• Very high chance of commercial success for

appraisal/exploration contingent and prospective

resources of 70% and 56% respectively

• With award of Block 13/23c (Phase II) to i3 in May

2018, Phase I development enlarged with expected

third well to recover approximately 7 MMbbls of

AGR’s “Phase II East” 2C contingent resources

1. Liberator Reserves from AGR Liberator CPR 2017-11-03, Phase II (Liberator West) Contingent Resources and Prospective Resources from AGR Liberator Phase II CPR 2017-11-08

2. Liberator Phase II (East) CoS: 70% chance of finding sufficiently large volume, Liberator Phase II (West) CoS: Geological CoS 56.25%

Documents

: Unlocking material value in the UK North Sea · : CORPORATE UPDATE JANUARY 2019 5 Serenity Prospect 13/23c 13/23d Tain Discovery Serenity Prospect Liberator Development & Appraisal