REG - Longboat Energy PLC - Joint Venture with JAPEX – completion update

Longboat EnergyAnnouncement

22/06/2023 07:00

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RNS Number : 5734D  Longboat Energy PLC  22 June 2023

 

 

 

 
Longboat Energy
plc

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

 

Norwegian Joint Venture with JAPEX - completion update

 

London, 22 June 2023 - Longboat Energy, the emerging full-cycle E&P
company, is pleased to provide an update on the completion process for the
creation of Longboat JAPEX Norge AS ("Longboat JAPEX" or the "Joint Venture").

 

The Norwegian Ministry of Petroleum and Energy has given its approval to the
formation of the Joint Venture, which was the key regulatory approval sought,
and completion of the transaction is now expected to occur in the first half
of July 2023.

 

The information contained within this announcement is not considered to be
inside information prior to its release.

 

 

 Longboat Energy                                via FTI
 Helge Hammer, Chief Executive Officer
 Jon Cooper, Chief Financial Officer

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

 Rosie Corbett

 Catrin Trudgill

 

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.
Since June 2021, Longboat has entered a series of four transactions to acquire
interests in a portfolio of nine, gas-weighted exploration wells drilling on
the Norwegian Continental Shelf close to existing infrastructure. To date,
eight of these wells have been drilled resulting in five hydrocarbon
discoveries, representing a technical 63% success rate.

 

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.

 

In May 2023, the Company announced that agreement had been reached with Japan
Petroleum Exploration Co., Ltd ("JAPEX") to make a significant investment into
its Norwegian subsidiary, Longboat Energy Norge AS ("Longboat Norge"), to form
a joint venture.  Under this agreement, JAPEX will make a cash investment of
up to US$50 million for 49.9% of Longboat Norge and provide the Joint Venture
with a US$100 million Acquisition Financing Facility to finance acquisitions
and associated development costs.

 

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.

 

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