REG - Longboat Energy PLC - Completion of Statfjord Satellites Acquisition

Longboat EnergyAnnouncement

01/02/2024 07:00

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RNS Number : 6106B  Longboat Energy PLC  01 February 2024

1 February 2024

 

 

 Longboat Energy plc

("Longboat Energy", the "Company" or "Longboat")

 

Completion of Statfjord Satellites Acquisition in Norway

 

Longboat Energy, an emerging full-cycle E&P company with activities in
Norway and Malaysia, is pleased to announce the completion of the acquisition
of a 4.80% unitised interest in the Statfjord Øst Unit and a 4.32% unitised
interest in the Sygna Unit (together, the "Statfjord Satellites") by its
Norwegian joint venture Longboat JAPEX Norge AS ("Longboat JAPEX" or the
"Joint Venture").

 

Production from the Statfjord Satellites averaged net 254 boepd in 2023 and is
currently at net 370 boepd from Statfjord Øst and Sygna. Drilling operations
have been completed and the operator, Equinor, is currently in the process of
commissioning the remaining new wells in Statfjord Øst which are expected to
be brought on stream during the coming months.

 

Longboat anticipates a significant increase in production during the first
quarter of 2024 and production guidance will be provided following the ramp-up
of the new production wells.

 

The acquisition of the Statfjord Satellites has been funded by a combination
of the investment by JAPEX into Longboat JAPEX announced last year and a
drawing of approximately US$15 million on the Acquisition Bridge Facility
provided by JAPEX to the Joint Venture. The drawing is greater than originally
forecast due to negative working capital movements related to delays in
bringing new wells on-stream during 2023.

 

Helge Hammer, Chief Executive of Longboat, commented:

"We are pleased to have reached completion of our first production acquisition
in Norway. Albeit a relatively small acquisition, it is an important step and
the Statfjord Satellites are long-life assets and have just undergone a
significant infill drilling and redevelopment project..

 

"We are now focused on adding further assets to our portfolio to build a full
cycle E&P company with material production interests. We would like to
thank our new joint venture partner, JAPEX, with whom we have worked in close
cooperation to execute this transaction."

The information contained within this announcement is 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

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

 

 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 66%
 technical 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 in return for a cash investment of US$20
 million and a US$100 million Acquisition Financing Facility. Longboat
 retains 50.1% ownership in Longboat JAPEX Norge AS.

 Longboat JAPEX Norge AS holds interests in six discoveries on the Norwegian
 Continental Shelf and has a 4.80% interest in Statfjord Øst and 4.32%
 unitised interest in Sygna producing fields.

 Longboat entered Malaysia in February 2023 through the award of a Production
 Sharing Contract for Block 2A, offshore Sarawak where it holds a 52.5%
 operated interest. Block 2A covers approx. 12,000km2 and is located in water
 depths of between 100-1,400 metres and contains the giant 'Kertang' prospect
 which has volume potential of 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

 "boepd"                 barrels of oil equivalent per day

 

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