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February 2024
Longboat Energy plc
("Longboat Energy", "Longboat" or the
"Company")
Completion of farm-down transaction in
Norway
Longboat Energy, an emerging
full-cycle E&P company active in Norway and Malaysia, is
pleased to announce the completion of the farm-down of two
exploration licenses on the Norwegian Continental Shelf ("NCS") by
Longboat JAPEX Norge AS ("Longboat JAPEX") as announced on 8
December 2023.
Longboat JAPEX has completed the farm-down
transactions of the following interests to Concedo AS:
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The Company has farmed down its interest in
PL1182S from 30% to 15% in return for a full carry of the
Kjøttkake/Lotus exploration well, up to an agreed cap above the dry
well budget. The well is expected to spud in Q3 2024
·
In PL1049 which contains the Jasmine and Sjøkreps
prospects, Longboat JAPEX has farmed down its interest from 40% to
25% in return for Concedo carrying an element of the Company's 2024
exploration expenditure, which mainly consists of seismic costs and
studies.
For further information about these
transactions and the exploration licenses, see press announcement
on 8th December 2023.
Helge Hammer, Chief Executive of
Longboat, commented:
"We are
pleased to have completed the farm down of two Norwegian
exploration licences and look forward to the drilling of the Lotus
exploration well later this year, the cost of which will be fully
carried.
This farm down is in line with our
strategy to retain exposure to high quality exploration wells but
at minimum use of the Company's equity capital.
We are also pleased to have reached
completion of our first production acquisition in Norway, which we
also announced today and which is an important first step in
building a full cycle E&P company with material
production."
The information contained within this
announcement is considered to be inside information prior to its
release.
Ends
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Enquiries:
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Longboat
Energy
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via FTI
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Helge Hammer, Chief Executive
Officer
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Jon Cooper, Chief Financial Officer
Nick Ingrassia, Corporate Development
Director
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Stifel (Nomad
and Joint Broker)
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Tel: +44 20 7710 7600
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Callum Stewart
Jason Grossman
Ashton Clanfield
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Cavendish
Capital Markets Limited (Joint
Broker)
Tel:
+44 20 7397 8900
Neil McDonald
Pete Lynch
Leif Powis
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FTI Consulting
(PR adviser)
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Tel: +44 20 3727 1000
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Ben Brewerton
Rosie Corbett
Catrin Trudgill
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longboatenergy@fticonsulting.com
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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 66% technical 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 in return for a
cash investment of US$20 million and
a US$100 million Acquisition Financing Facility. Longboat
retains 50.1% ownership in Longboat JAPEX Norge
AS.
Longboat JAPEX Norge AS holds
interests in six discoveries on the
Norwegian Continental Shelf and has a 4.80% interest in Statfjord
Øst and 4.32% unitised interest in Sygna producing
fields.
Longboat entered Malaysia
in February 2023 through the award of a Production
Sharing Contract for Block 2A, offshore Sarawak where it holds a
52.5% operated interest. Block 2A covers approx. 12,000km2 and is
located in water depths of between 100-1,400 metres and contains
the giant 'Kertang' prospect which has volume potential of 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.
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Concedo Background
Concedo is a private Norwegian oil
company focusing on exploration on the Norwegian Continental Shelf.
In June 2023, Concedo announced the acquisition by Attica
Exploration AS a newly formed private entity backed by Lundin
family members.
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
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"boe"
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barrels of oil equivalent
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"NCS"
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Norwegian Continental
Shelf
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"Prospective Resources"
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those quantities of petroleum which
are estimated, on a given date, to be potentially recoverable from
undiscovered accumulations
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