TIDMLBE
RNS Number : 0874W
Longboat Energy PLC
08 December 2023
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Farm-down of two exploration licences in Norway
London, 8 December 2023 - Longboat Energy, an emerging
full-cycle E&P company active in Norway and Malaysia, is
pleased to announce that Longboat JAPEX Norge AS ("Longboat JAPEX")
has farmed down two exploration licences on the Norwegian
Continental Shelf ("NCS") through an agreement with Concedo AS
("Concedo").
Summary
-- In PL1182S, the Company has farmed down from 30% to 15% in
return for a full carry of the Lotus exploration well, up to an
agreed cap above the dry well budget, which is expected to spud in
Q3 2024
-- In PL1049 which contains the Jasmine and Sjøkreps prospects,
Longboat JAPEX has farmed down from 40% to 25% in return for
Concedo carrying 15% of the Company's 2024 exploration
expenditure
Lotus exploration well (Company currently 30%)
Licence PL1182S lies in the prolific Northern North Sea, 4 km
southeast of the Company's recent significant Kveikje discovery
where Longboat JAPEX is a 10% equity partner.
The Lotus prospect (also named the Kjøttkake prospect by the
licence operator) is comprised of Palaeocene injectite sandstones,
characterised by excellent reservoir properties, and is supported
by seismic amplitudes. Longboat JAPEX exploited its significant
knowledge of injectite reservoirs, which are also the main
reservoir in the Kveikje discovery, to secure the Lotus prospect in
last year's APA 2022 licencing round.
Based on the internal estimates, Lotus contains gross mean
prospective resources of 27 mmboe* with further potential upside
estimated at 44 mmboe*. The chance of success is 54%* with the key
risk being hydrocarbon retention.
If successful, Lotus/Kjøttkake is likely to form part of an area
cluster development together with Kveikje and several other recent
discoveries in the area, through infrastructure associated with the
nearby giant Troll field.
The Lotus prospect will be drilled using the semi-submersible
Deepsea Yantai and is expected to be drilled during Q3 2024. The
licence partnership includes DNO Norge AS (40%, op) and Aker BP ASA
(30%).
PL1049 Jasmine and Sjøkreps (Company currently 40%)
Longboat Energy Norge initially held 25% in PL1049 where the
deep Cambozola prospects was drilled in 2022. The target for
further exploration in the licence is the shallower levels and the
licence has been stratigraphically split. Two prospects have been
mapped, Sjøkreps and Jasmine, both targeting Tertiary plays. The
area is covered with new modern high quality seismic data and
combined with new processing techniques, there is significant
potential to de-risk the exploration prospects.
Sjøkreps is a fault-bounded three-way dip closure at Palaeocene
level and has preliminary estimated recoverable volumes ranging
between 20 to 300 mmboe** (P90-P10) with the main risk being
presence and quality of reservoir.
The Jasmine prospect is an injectite target at Eocene level,
which is analogous to the Kveikje discovery, and has recoverable
volume range preliminarily estimated between 10 to 30 mmboe***
(P90-P10) with the main risk being reservoir presence and
quality.
The work programme consists of seismic studies, potential
seismic reprocessing and integration of results from ongoing and
near-term wells targeting the same interval in the area, which
combined have the potential to significantly improve the Chances of
Success ahead of making a drill decision. The potential drilling
decision has to be made by February 2025.
Helge Hammer, Chief Executive of Longboat, commented:
" We are pleased to announce the successful farm down of the two
Norwegian exploration licences and the full carry of the Lotus
exploration well cost, which is in line with our strategy to retain
exposure to high quality exploration wells but at minimum use of
the Company's equity capital, and we remain fully focussed on
delivering on our plans to grow production and reserves in high
quality assets in Norway and in SE Asia."
The information contained within this announcement is considered
to be inside information prior to its release.
Ends
Enquiries:
Longboat Energy via FTI
Helge Hammer, Chief Executive Officer
Jon Cooper, Chief Financial Officer
Nick Ingrassia, Corporate Development
Director
Stifel (Nomad and Joint Broker) Tel: +44 20 7710 7600
Callum Stewart
Jason Grossman
Ashton Clanfield
Cavendish Capital Market Limited
(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
Catrin Trudgill longboatenergy@fticonsulting.com
* Resource figures and chance of success estimates on Lotus are
from Longboat JAPEX's APA2022 application.
** Operator estimate
*** LJN estimate
Company 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. Longboat's initial focus has been in Norway where
the Company has drilled eight exploration wells resulting in five
hydrocarbon discoveries, representing a technical 63% success
rate.
In July 2023, Longboat completed a 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 .
Longboat entered Malaysia in February 2023 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.
Concedo Background
Concedo is a private Norwegian oil company focusing on
exploration on the Norwegian Continental Shelf. In June 2023,
Concedo announced the acquisition by Attica Exploration AS a newly
formed private entity backed by Lundin family members.
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 2020.
Review by Qualified Person
The technical information in this release has been reviewed by
Hilde Salthe, Managing Director Norge, 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.
Glossary
"mmboe" Million barrels of oil equivalent
"NCS" Norwegian Continental Shelf
"Prospective Resources" those quantities of petroleum which are
estimated, on a given date, to be potentially
recoverable from undiscovered accumulations
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCBLBDDBSGDGXR
(END) Dow Jones Newswires
December 08, 2023 02:00 ET (07:00 GMT)
Seascape Energy Asia (LSE:SEA)
Historical Stock Chart
From Nov 2024 to Dec 2024
Seascape Energy Asia (LSE:SEA)
Historical Stock Chart
From Dec 2023 to Dec 2024
