REG - Longboat Energy PLC - PL 939 Licence Update - Egyptian Vulture

Longboat EnergyAnnouncement

03/03/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230303:nRSC7434Ra&default-theme=true

RNS Number : 7434R  Longboat Energy PLC  03 March 2023

 

3 March 2023

 

          Longboat Energy
plc

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

 

PL 939 Licence Update - Egyptian Vulture

 

Longboat Energy, the emerging full-cycle E&P company, provides an update
on the status of the PL 939 licence which contains the Egyptian Vulture oil
discovery.

 

In October 2021, Longboat announced the Egyptian Vulture light oil discovery
(Longboat 15%) close to infrastructure on the Halten Terrace in the Norwegian
Sea. The discovery is visible on seismic as a large amplitude anomaly and
intensive technical studies have been undertaken to de-risk the discovery with
particular focus on seismic interpretation and distribution of areas with good
reservoir. As part of this work, ERCE provided an independent assessment of
the discovery in a Competent Person Report commissioned by Longboat, which has
confirmed the 1C-3C size of the discovery at gross 4-68 mmboe.

 

For an appraisal well on Egyptian Vulture to be successful, it would need to
encounter better reservoir quality than that penetrated by the discovery well.
 The Joint Venture participants, following extensive technical work, have
been unable to form an aligned view regarding an appraisal well and will not
be committing to a licence extension as required on 2 March 2023. Therefore
the licence is being relinquished.

 

However, Longboat is looking to form a new group to take the asset forward and
rather than take over the existing licence, which would involve escalating
license fees, will seek to re-apply for the acreage in the forthcoming licence
round with awards due in January 2024.

 

Helge Hammer, Chief Executive of Longboat, commented:

 

"The Egyptian Vulture discovery has significant upside and needs an aligned
partnership to be efficiently appraised and progressed to a potential
development project. We look forward to creating a new group to take this
high-potential asset forward."

 

The information contained within this announcement is considered to be inside
information prior to its release.

Ends

 Enquiries:
 Longboat Energy
 Helge Hammer, Chief Executive Officer            via FTI

 Jon Cooper, Chief Financial Officer

 Nick Ingrassia, Corporate Development Director

 Stifel Nicolaus Europe Limited (Nominated Adviser and Broker)
 Callum Stewart                                   Tel: +44 20 7710 7600

 Jason Grossman

 Simon Mensley

 Ashton Clanfield

 FTI Consulting (PR adviser)
 Ben Brewerton                                    Tel: +44 20 3727 1000

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

 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 (Egyptian Vulture, Mugnetind, Rødhette, Kveikje and Oswig),
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.
12,000km2 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 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

 1C                    Denotes low estimate of Contingent Resources.
 3C                    Denotes high estimate of Contingent Resources.
 Contingent Resources  Those quantities of petroleum estimated, as of a given date, to be potentially
                       recoverable from known accumulations by application of development projects,
                       but which are not currently considered to be commercially recoverable owing to
                       one or more contingencies.
 mmboe                 Million barrels of oil equivalent

 

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://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 (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDJTMBTMTTMTMJ