REG - Longboat Energy PLC - Velocette Minor Gas Discovery

Longboat EnergyAnnouncement

20/09/2023 07:00

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RNS Number : 9891M  Longboat Energy PLC  20 September 2023

20 September 2023

 
Longboat Energy
plc

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

 

Velocette Minor Gas Discovery

 

Longboat Energy, an emerging full-cycle E&P company active in Norway and
Malaysia, announces a minor discovery at the Velocette (PL1016) exploration
well in Norway (Longboat JAPEX Norge AS 20%).

 

The exploration well 6607/3-1 S encountered hydrocarbons in the primary target
in Cretaceous turbidite sands in the Nise formation. The top of the reservoir
was reached close to prognosis at a vertical depth of 3348 metres below sea
level with 61 meters of high net-to-gross, moderate to very good quality
sandstone. Data acquisition indicates a gas column of approximately nine
metres in the well.

 

As the Velocette volumes are at the lower end of pre-drill expectations the
discovery is not considered to be commercial in isolation. However, the
licence contains numerous other prospects which have been derisked by the
presence of gas in good quality reservoir in the Velocette well. The remaining
prospectivity has significant size potential in multiple structures and with
slightly different trapping geometries. Further assessment of the licence
prospectivity together with other opportunities in the area could impact the
commercial potential of the licence. High quality data and gas and fluid
samples were collected in the exploration well and these will be integrated
into the updated prospect evaluations. PL1016 is located within tieback
distance from the Equinor operated, producing Aasta Hansteen field (~45 km).

 

The well will now be plugged and abandoned as planned. The license partnership
consists of Longboat JAPEX Norge AS (20%), OMV Norge AS (40% operator) and
INPEX Idemitsu Norge AS (40%).

Helge Hammer, Chief Executive of Longboat Energy, commented:

"Although we are disappointed not to have made a commercial discovery in
Velocette, the presence of good quality sandstone reservoir, which was the
main pre-drill risk, and the presence of gas is encouraging.  There is
significant follow-on potential that has been derisked with this result and we
will be working with our joint venture partners to mature these opportunities
further."

 

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

 

 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 67% 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. Under these arrangements, JAPEX will make an
 initial investment of up to US$20 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.

 Longboat entered Malaysia in February 2023 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.

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

 

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 67% 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. Under these arrangements, JAPEX will make an
initial investment of up to US$20 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.

 

Longboat entered Malaysia in February 2023 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 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 Masters Degree from Faculty of Applied Earth Sciences at the
Norwegian University of Science and Technology in Trondheim.

 

 

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