REG - Longboat Energy PLC - APA Licence Award & Statfjord Update

Longboat EnergyAnnouncement

17/01/2024 07:00

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RNS Number : 9142Z  Longboat Energy PLC  17 January 2024

17 January 2024

 

 
Longboat Energy
plc

("Longboat Energy" or "Longboat")

 

APA Licence Award & Statfjord Satellites Acquisition Update

 

Longboat Energy, an emerging full-cycle E&P company active in Norway and
Malaysia, is pleased to announce the award of a new licence under the
Norwegian 2023 APA Licensing Round (Awards in Predefined Areas) to its
Norwegian joint venture, Longboat JAPEX Norge AS ("Longboat JAPEX" or the
"Company") and to provide an update on the completion of the acquisition of
the Statfjord Satellites.

 

Licence 1212 S Block 35/7, 10 - Magnolia

 

Longboat JAPEX is pleased to announce it has been awarded a 20% interest in
Licence PL 1212 S which contains the Magnolia prospect, together with partners
Equinor Energy AS (operator) 40% and DNO Norge AS (40%).

 

Magnolia lies in the prolific Northern North Sea, an area in which Longboat
JAPEX has built a significant presence since 2021 pursuing an emerging
Paleogene injectite play. The Magnolia area includes the Company's significant
Kveikje discovery (Company 10%), the Kjøttkake/Lotus exploration well
(Company 15%) which is expected to spud in Q3 2024, and the Jasmine and
Sjøkreps prospects (Company 25%) located in PL1049. The Lotus and
Jasmine/Sjøkreps prospects were recently subject to a successful farm-down by
Longboat JAPEX to Concedo.

 

The Magnolia prospect comprises Eocene injectite sandstones, analogous to the
Kveikje reservoir, characterised by good quality reservoir properties, with
seismic amplitude support. The Magnolia award allows Longboat JAPEX to
continue to build its presence in this prolific exploration and development
area and exploit its deep knowledge of injectite reservoirs gained through the
Kveikje discovery.

 

The Company estimates Magnolia to contain gross mean prospective resources of
39 mmboe* with further potential upside estimated at 57 mmboe*. The chance of
success associated with the Magnolia prospect is 34%* with the key risk being
hydrocarbon retention and phase.

 

If successful, Magnolia and Kjøttkake/Lotus are likely to form part of an
area cluster development together with several other recent discoveries in the
area. The Magnolia licence award further increases the attractiveness of
Longboat JAPEX's existing position in the Northern North Sea.

 

The work programme consists of the acquisition and/or reprocessing of modern
3D seismic and G&G studies within the initial one-year period.

 

Statfjord satellites acquisition update

 

The fifth and final of the new infill wells in Statfjord Øst redevelopment
has now been successfully drilled and the Statfjord Øst and Sygna fields are
expected to start ramping up production during Q1 2024. The transaction is
progressing towards completion, which is expected at the end of this month.

Helge Hammer, Chief Executive of Longboat, commented:

"We are pleased to have been awarded this additional licence, which will add
to our core area around Kveikje, where Longboat has already discovered
significant volumes and will be drilling the carried exploration well on
Kjøttkake/Lotus later this year. We look forward to working with our partners
to build on the success and add further value in this emerging development
area."

 

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 Markets 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                longboatenergy@fticonsulting.com (mailto:longboatenergy@fticonsulting.com)

 Rosie Corbett

 Catrin Trudgill

 

 * Source : Resource figures and chance of success estimates on Magnolia are
 from Longboat's APA2023 application.

 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 nine
 exploration wells resulting in six hydrocarbon discoveries, representing a
 technical success rate of 66%.

 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 US$20 million, of which US$16 million was paid on
 completion, for a 49.9% shareholding in of Longboat JAPEX Norge AS and a
 further US$4 million will be paid on completion of the Statfjord Satellites
 acquisition and JAPEX also provides 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.
 12,000km2 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.

Cavendish Capital Markets 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                longboatenergy@fticonsulting.com (mailto:longboatenergy@fticonsulting.com)

 Rosie Corbett

 Catrin Trudgill

 

* Source : Resource figures and chance of success estimates on Magnolia are
from Longboat's APA2023 application.

 

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 nine
exploration wells resulting in six hydrocarbon discoveries, representing a
technical success rate of 66%.

 

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 US$20 million, of which US$16 million was paid on
completion, for a 49.9% shareholding in of Longboat JAPEX Norge AS and a
further US$4 million will be paid on completion of the Statfjord Satellites
acquisition and JAPEX also provides 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.
12,000km2 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.

 

 Glossary

 "mmboe"                  Million barrels of oil equivalent

 

Magnolia License Award - Area Map

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