i3 Energy announced that the Serenity appraisal well in the UK North sea was water wet and not oil bearing and that it will be plugged and abandoned. The company indicated that the cost of the well net to i3 Energy will be under-budget at circa £5.6M. We reduce our fair estimate from 66p to 49.35p to reflect the result (Table 1). For reference, our current fair value estimate includes 49.3p of value for the company's Canadian operations (based on a conservative 5x EV/CF 2022 multiple) and does n ....
