Block 2A Competent Persons Report

Seascape Energy Asia

27/06/2024 07:00

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RNS Number : 0543U  Longboat Energy PLC  27 June 2024

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 596/2014 AS AMENDED AND TRANSPOSED INTO UK LAW IN ACCORDANCE WITH
THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK MAR").

 

27 June 2024

 

Longboat Energy plc

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

 

Block 2A Competent Persons Report

 

Longboat Energy, an emerging E&P company focused on Southeast Asia
provides the following summary of the Competent Persons Report ("CPR")
published today on its website in respect of Block 2A offshore Sarawak in
eastern Malaysia.

 

Block 2A Competent Persons Report

 

In anticipation of a farm-out process, Longboat commissioned ERC Equipoise Ltd
("ERCE") to undertake a CPR on the main Kertang prospect located in Block 2A
(Longboat 52.5%, op), offshore Sarawak in eastern Malaysia.

 

Kertang is a well-defined, large, four-way dip closed structural high with
over 220 km(2) of closure. Four target intervals have been evaluated
comprising of Cycle I and Cycle II/III, Oligo-Miocene reservoirs, representing
the primary targets and shallower Cycle V/VII reservoirs representing the
secondary targets. The prospect is covered by high-quality, wide-beam 3D
seismic shot by CGG in 2015.

 

The CPR confirms the giant scale of the Kertang prospect assigning total
gross, unrisked mean prospective resources of 9.1 TCF plus 146 mmbbl of NGLs
across the four target horizons. A summary of the findings is provided in the
table below:

 

 Gross Mean Unrisked Prospective Resources (as of March 2024)
                  Gas      NGL       CoS%

                  (bscf)   (mmbbl)
 Cycle I          4,993    77        22%
 Cycle II/III     3,435    50        16%
 Cycle V/VII AA1  143      4         24%
 Cycle V/VII AA2  514      14        27%
 Total            9,083    146
 Source: ERCE Competent Persons Report (26 June 2024)

 

The prospect exhibits direct hydrocarbon indicators (DHIs) including an
overlying gas cloud feature and amplitude brights at the Cycle V/VII level.
Based on the results of seabed core samples taken by PETRONAS MPM in 2019,
Kertang is believed to be outside of the CO(2) fairway. Preliminary work
undertaken by Longboat indicates that all target horizons are capable of being
tested by a single exploration well.

 

A summary of the ERCE Competent Persons Report  can be found on the Company's
website (https://longboatenergy.com/presentations-reports/
(https://longboatenergy.com/presentations-reports/) ) and a full table, which
should be read with the accompanying notes, can be found at the end of this
press release.

 

 

Background

 

In February 2023, Longboat announced it had been awarded a 36.75% operated
interest in a Production Sharing Contract ("PSC") for Block 2A alongside
partners Petronas Carigali Sdn. Bhd (40%), Petroleum Sarawak Exploration &
Production Sdn. Bhd. (7.5%) and Topaz Number One Limited (15.75%) as part of
the Malaysian Bid Round 2022. Subsequently, Longboat purchased Topaz Number
One Limited in a transaction announced in September 2023 bringing its total
holdings in the block to 52.50%.

 

Block 2A is located offshore Sarawak, eastern Malaysia in the North Luconia
hydrocarbon province covering approximately 12,000 km(2) in water depths
between 100-1,400 metres. Bintulu LNG, one of the world's largest LNG
facilities with capacity of 30 MTPA, is located onshore on the coast of
Sarawak.

 

The PSC is split into two terms; the first term (3-years) entails minimal work
commitments focused on subsurface studies with the second term (2-years)
requiring the drilling of one firm well to depth > 3,000 metres.

 

Following recent increased interest levels in exploration for world-scale
fields, multiple large companies have approached Longboat regarding Block 2A.
Having consulted with PETRONAS, the Company now intends to run a farm-out
process during H2-24 to identify a suitable partner.

 

Nick Ingrassia, CEO of Longboat, commented:

 

"I am extremely pleased the results of the ERCE CPR confirms Longboat's
internal view of the world-class scale of the Kertang prospect. Based on the
excellent subsurface work undertaken to date by the Longboat team, we believe
that Kertang is one of the largest undrilled structures in Malaysia and look
forward to working with our partners PETRONAS and Petros to progress the
prospect towards drilling in the next 18 months."

Ends

 Enquiries:
 Longboat Energy                                   via FTI
 Nick Ingrassia (Chief Executive)

 Stifel (Nomad and Joint Broker)                   Tel: +44 20 7710 7600
 Callum Stewart                                    SNELLongboatEnergy@Stifel.com

 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

ERCE Competent Persons Report Summary

Gross Prospective Resources as of March 2024

 Block 2A / Kertang  Cycle I          Raw Gas (bscf)  674.2  2,821.3  11,111.1  4,992.8  22%   1,118.4
                     NGL (mmbbl)                      1.7    23.2     186.5     77.2     22%   17.3
                     Cycle II/III     Raw Gas (bscf)  438.6  1,877.6  7,806.4   3,434.6  16%   549.5
                     NGL (mmbbl)      1.1             15.8   121.4    50.4      16%      8.1
                     Cycle V/VII AA1  Raw Gas (bscf)  59.4   124.6    246.6     142.5    24%   33.5
                     NGL (mmbbl)      0.5             2.1    9.7      4.0       24%      0.9
                     Cycle V/VII AA2  Raw Gas (bscf)  174.1  409.7    965.8     513.5    27%   138.0
                     NGL (mmbbl)      1.5             6.9    34.1     14.3      27%      3.9
                     Total            Raw Gas (bscf)                            9,083.4        1,839.5
                     NGL (mmbbl)                                      145.9              30.2

 

Notes

1.     Unrisked mean total is not representative of the expected total
from the four reservoir intervals and assumes a success case in all intervals.

2.     ERCE's volumes assume a gas case only. ERCE allocates a phase risk
of 90% gas (vs oil 10%).

3.     COS represents the geological chance of success of each reservoir
interval

4.     Raw gas estimates have not accounted for losses due to fuel &
flare or processing

5.     These resources are not risked for chance of development and there
is no certainty that if they are discovered they will be developed.

Standard

Estimates of reserves and resources have been carried out in accordance with
the June 2018 SPE/WPC/AAPG/ SPEE/SEG/SPWLA/EAGE Petroleum Resources Management
System ("PRMS") as the standard for classification and reporting. A summary of
the PRMS can be downloaded
from:-https://www.spe.org/en/industry/petroleum-resources-management-system-2018/.
 

Review by Qualified Person

The technical information in this release has been reviewed by Dr Pierre
Eliet, EVP Corporate & Business Development, Country Chair Malaysia, who
is a qualified person for the purposes of the AIM Guidance Note for Mining,
Oil and Gas Companies. Dr Eliet is a geologist with more than 25 years'
experience in the oil and gas industry. Dr Eliet has a BA Degree in Earth
Sciences from Trinity College, Dublin and PhD in Geology from Manchester
University, UK.

Glossary

"bscf" means billion standard cubic feet

"CoS" means chance of success

"mmbbl" means million barrels

"MTPA" means million tons per annum

"NGL" means natural gas liquids

"Prospective Resources" means those quantities of petroleum which are
estimated, on a given date, to be potentially recoverable from undiscovered
accumulations

"TCF" means trillion cubic feet

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