REG - Longboat Energy PLC - Velocette Well Spud

Longboat EnergyAnnouncement

08/08/2023 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:20230808:nRSH5719Ia&default-theme=true

RNS Number : 5719I  Longboat Energy PLC  08 August 2023

8 August 2023

 
Longboat Energy
plc

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

 

Velocette Well Spud

 

Longboat Energy, an emerging full-cycle E&P company active in Norway and
Malaysia, is pleased to announce the commencement of drilling operations on
the Velocette (PL1016) exploration well in Norway (Company 20%).

 

Velocette is a gas-condensate prospect targeting Cretaceous Nise turbidite
sands on the eastern flank of the Utgard High in the Norwegian Sea. The
prospect benefits from seismic amplitude anomalies indicative of gas-filled
sands and is located within tieback distance from the Equinor operated,
producing Aasta Hansteen field (~45 km).

 

Velocette is estimated to contain gross unrisked mean resources of 177(*)
mmboe (35(*) mmboe net to Longboat JAPEX Norge AS) with a geological chance of
success of 30%(*). A number of follow on opportunities exist within license
PL1016 with aggregate gross unrisked mean resources of ~200(*) mmboe, which
would be significantly de-risked by success in the Velocette well. The key
risks associated with this prospect are reservoir presence and quality.

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:

"We are excited to have commenced drilling the Velocette prospect which will
be our ninth exploration well. Velocette is a gas weighted opportunity
targeting very significant prospective resources. The exploration well also
has significant follow-on potential that will be derisked in the case of
success."

 

Notes:

 

(*)Source: ERCE CPR September 2022, a gas-to-barrel of oil equivalent
conversion factor of 5,600 scf/stb

The information contained within this announcement is not 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)                                   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.

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.

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.

 

 

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  UPDUPUMPRUPWPUM