REG - Longboat Energy PLC - Production start for Statfjord Øst project

Longboat EnergyAnnouncement

29/08/2023 07:00

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RNS Number : 5453K  Longboat Energy PLC  29 August 2023

29 August 2023

 

 

 
Longboat Energy
plc

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

 

Production start for Statfjord Øst project

 

Longboat Energy, an emerging full-cycle E&P company with activities in
Norway and Malaysia, is pleased to note the following announcement made by
Equinor confirming the production start for the Statfjord Øst project
(Company 4.80%).

 

On 3 July 2023 the Company announced the acquisition of a 4.80% unitised
interest in the Statfjord Øst Unit and a 4.32% unitised interest in the Sygna
Unit and where completion is expected before the year end. -----------

________________________

 

With this project, Equinor and its partners expect to increase production by
26 million barrels of oil equivalents from Statfjord Øst.

 

The project is completed with sound safety results and is expected to deliver
within estimated cost, despite the inflation and weakened Norwegian krone.
Production starts six months ahead of schedule.

Two new wells have been drilled from existing subsea templates, and three
additional wells are to be drilled. Statfjord Øst is tied to the Statfjord C
platform, and the project includes a modification on Statfjord C and laying of
a new pipeline for gas lift to the subsea wells.

This is a good example of how we work with mature fields. Equinor aims to be a
leading operator of late-life fields on the NCS. That means that we need to
find new ways of working to reduce costs. Together with our partners we have
developed simpler and faster solutions while maintaining high quality," says
Ketil Rongved, Equinor's vice president for FLX projects.

The oil recovery rate from the field is expected to rise from 58 to 63 percent
as a result from this project. Statfjord Øst started producing in 1994. The
field is located five kilometres from Statfjord C.

The project was decided by the partnership in 2020 and approved by the
Ministry of Petroleum and Energy in 2021.

"This proves the importance of extending the life of mature fields and
maximizing value creation from existing infrastructure on the Norwegian
continental shelf (NCS). The project contributes to extending the life of
Statfjord C to 2040. The profitability is high, and the value of increased
production equals around NOK 20 billion at the current oil price. This is good
use of resources which provide ripple effects for Norwegian suppliers," says
Camilla Salthe, Equinor's senior vice president for Field Life eXtension
(FLX).

_____________________________

The information contained within this announcement is not 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

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

 

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. To
date, Longboat's main focus has been in Norway where since June 2021, the
Company has entered into a series of transactions to acquire interests in a
portfolio of exploration assets close to existing infrastructure. So far,
eight of these wells have been drilled resulting in five hydrocarbon
discoveries, representing a technical 63% success rate.

 

In July 2023, Longboat completed the 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.

 

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.

 

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.

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