TIDMLBE
RNS Number : 5453K
Longboat Energy PLC
29 August 2023
29 August 2023
Longboat Energy plc
("Longboat Energy", the "Company" or "Longboat")
Production start for Statfjord Øst project
Longboat Energy, an emerging full-cycle E&P company with
activities in Norway and Malaysia, is pleased to note the following
announcement made by Equinor confirming the production start for
the Statfjord Øst project (Company 4.80%).
On 3 July 2023 the Company announced the acquisition of a 4.80%
unitised interest in the Statfjord Øst Unit and a 4.32% unitised
interest in the Sygna Unit and where completion is expected before
the year end. -----------
________________________
With this project, Equinor and its partners expect to increase
production by 26 million barrels of oil equivalents from Statfjord
Øst.
The project is completed with sound safety results and is
expected to deliver within estimated cost, despite the inflation
and weakened Norwegian krone. Production starts six months ahead of
schedule.
Two new wells have been drilled from existing subsea templates,
and three additional wells are to be drilled. Statfjord Øst is tied
to the Statfjord C platform, and the project includes a
modification on Statfjord C and laying of a new pipeline for gas
lift to the subsea wells.
This is a good example of how we work with mature fields.
Equinor aims to be a leading operator of late-life fields on the
NCS. That means that we need to find new ways of working to reduce
costs. Together with our partners we have developed simpler and
faster solutions while maintaining high quality," says Ketil
Rongved, Equinor's vice president for FLX projects.
The oil recovery rate from the field is expected to rise from 58
to 63 percent as a result from this project. Statfjord Øst started
producing in 1994. The field is located five kilometres from
Statfjord C.
The project was decided by the partnership in 2020 and approved
by the Ministry of Petroleum and Energy in 2021.
"This proves the importance of extending the life of mature
fields and maximizing value creation from existing infrastructure
on the Norwegian continental shelf (NCS). The project contributes
to extending the life of Statfjord C to 2040. The profitability is
high, and the value of increased production equals around NOK 20
billion at the current oil price. This is good use of resources
which provide ripple effects for Norwegian suppliers," says Camilla
Salthe, Equinor's senior vice president for Field Life eXtension
(FLX).
_____________________________
The information contained within this announcement is not
considered to be inside information prior to its release.
Enquiries:
Longboat Energy via FTI
Helge Hammer, Chief Executive Officer
Jon Cooper, Chief Financial Officer
Nick Ingrassia, Corporate Development
Director
Stifel (Nomad) Tel: +44 20 7710 7600
Callum Stewart
Jason Grossman
Ashton Clanfield
Cenkos Securities plc (Joint Broker) Tel: +44 20 7397 8900
Neil McDonald
Pete Lynch
Leif Powis
FTI Consulting (PR adviser) Tel: +44 20 3727 1000
Ben Brewerton
Rosie Corbett longboatenergy@fticonsulting.com
Background
Longboat Energy was established at the end of 2019 to create a
full-cycle E&P company through value accretive M&A and
near-field exploration. To date, Longboat's main focus has been in
Norway where si nce June 2021, the Company has entered into a
series of transactions to acquire interests in a portfolio of
exploration assets close to existing infrastructure. So far, eight
of these wells have been drilled resulting in five hydrocarbon
discoveries, representing a technical 63% success rate.
In July 2023, Longboat completed the transaction with Japan
Petroleum Exploration Co., Ltd ("JAPEX") to form a new joint
venture company in Norway named Longboat JAPEX Norge AS. Under
these arrangements, JAPEX will make a cash investment of up to
US$50 million, of which US$16 million was paid on completion, for a
49.9% shareholding in of Longboat JAPEX Norge AS and provide the
Joint Venture with a US$100 million Acquisition Financing Facility
to finance acquisitions and associated development costs. Longboat
retains 50.1% ownership in Longboat JAPEX Norge AS.
Also in July 2023, Longboat JAPEX Norge AS announced its first
production acquisition in Norway of interests in the Statfjord
satellite fields, Statfjord Øst and Sygna .
In February 2023, Longboat entered Malaysia through the award of
a Production Sharing Contract for Block 2A, offshore Sarawak. Block
2A covers approx. 12,000km(2) and is located in water depths of
between 100-1,400 metres where a number of large prospects across
multiple plays have been identified, with significant volume
potential representing multiple trillions of cubic feet of gas.
Longboat's activities remain focused on creating a portfolio
with a clear low-cost route to monetisation and low-carbon drilling
and development opportunities, well aligned to Longboat's ESG
targets which includes a corporate 'Net Zero' on a Scope 1 and 2
basis by 2050.
Standard
Estimates of reserves and resources have been prepared in
accordance with the June 2018 Petroleum Resources Management System
("PRMS") as the standard for classification and reporting with an
effective date of 31 December 2022.
Review by Qualified Person
The technical information in this release has been reviewed by
Hilde Salthe (Managing Director Longboat Energy Norge AS), who is a
qualified person for the purposes of the AIM Guidance Note for
Mining, Oil and Gas Companies. Ms Salthe is a petroleum geologist
with more than 20 years' experience in the oil and gas industry. Ms
Salthe has a Master's Degree from Faculty of Applied Earth Sciences
at the Norwegian University of Science and Technology in
Trondheim.
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