Longboat Energy Share Discussion Threads

[darcon] 12/1/2024 19:06

ohisay,

Yes, well noted.


For others new to LBE and by way of background, last year LBE announced the APA Licence Awards on 11 January 2023 in which they were awarded:

1. Licence 1182 S Block 35/10 - Lotus
2. PL1100C Oswig South Extension
3. PL293 CS Kveikje Discovery Extensions

[

On 8 December 2023 LBE announced the farm-down of 15% of Lotus "in return for a full carry of the Lotus exploration well"
[

Hopefully, with the additional expertise and know-how of their new Japex colleagues the local team at LBE/Japex can win more acreage in the 2024 Norwegian licensing round which they can in due course convert into more free carries as they have done successfully in 2023 with regard to Lotus.

[chutes01] 12/1/2024 16:43

breakout to 30p

[ohisay] 12/1/2024 16:28

We might get news of the results of the 2024 Norwegian licensing round next week.
LBE did apply.

[darcon] 12/1/2024 12:52

LBE's transaction with Inpex Idemitsu in respect of 4.80% of the Statfjord Ost Unit and 4.32% of the Sygna unit was announced on 3 July 2023 and has yet to be completed. LBE's transaction was targeted for completion by the end of 2023, but the deadline has obviously slipped. LBE's transaction announcement came after OKEA's announcement on 20 March 2023 of its acquisition from Equinor of ~14% stakes in these same units (

On 30 November 2023 OKEA announced a postponement of its transaction with Equinor. On 23 November 2023 LBE announced that "initial production "is slightly lower than anticipated mainly due to a delay in bringing new wells on stream" - perhaps a hint at the issue affecting OKEA's transaction with Equinor.

Okea at the end of December nevertheless completed their acquisition of the ~14% stakes from Equinor in the Statfjord and Sygna Units:

See also the info available on the regulator's fact pages on the two units:

Statfjord unit:
Sygna unit:

Currently Inpex Idemitsu is still shown as a part owner of these two units.

As may be seen from OKEA's 29 Dec 23 press release they were able to negotiate a deferral of part of their purchase consideration to Equinor as OKEA argued that there were some reductions in the fair value OKEA ascribed to the assets they acquired as a result of inflation and a 10-15% reduction in volumes over the lifetime of the acquired assets.

LBE in its 3rd July 23 press release stated that they anticipated profits associated with the transaction to be GBP5.6million as a result of unlocking "material tax synergies".

[basem1] 12/1/2024 10:39

Chart setting itself up nicely now for an attack on 25p

[ohisay] 31/12/2023 05:12

Yes LBE is my top oil play of 2024 as well.

FWIW my other 3 oilers for next year are AET,DELT and KIST.

All undervalued right now for differing reasons .

GLA too!

[hamid1970] 30/12/2023 18:05

Malaysia is a game changer and should be valued way higher when compared with UPL

2024, will be big and on many fronts. GLA

[muffster] 29/12/2023 20:15

Thanks for posting Ohi

[ohisay] 29/12/2023 11:27

Mentioned yesterday..

[jeanesy] 28/12/2023 17:14

Nice to finish with a buy at a premium :)

[chutes01] 28/12/2023 15:45

any reasonable buying demand and it goes straight up

[jailbird] 28/12/2023 15:29

Not much shares in issue Approx 57m in issue Not much free float around I expect

[ohisay] 28/12/2023 14:54

Is it just me ?... but one thing I've observed is that there's not much stock around .
Smallish levels of buying can move the price quite markedly.

[danmart2] 28/12/2023 13:05

2024 very much the make or break year for investors, should see development in both norway and malaysia

[burtond1] 28/12/2023 07:55

10 Oil and Gas Companies to follow in 2024https://total-market-solutions.com/2023/12/10-oil-and-gas-companies-to-follow-in-2024/

[sludgesurfer] 21/12/2023 15:40

Big news from Harbour today buying the Wintershall assets.

[ohisay] 21/12/2023 15:08

Meanwhile UPL market cap £46m equivalent to 80p per share for LBE.

In all honesty who do you think is more likely to get a Sarawak farm down over the line next year?

This is the blue sky but to help you sleep nights you have LBE with a 100m$ backstop from Japex who Helge describes as super conservative.

You get all this for 10m£ market cap.
Its Charlie Munger time here isn't it ?

[darcon] 21/12/2023 13:09

By way of further recap, there was a presentation by LBE on their acquisition on Investor Meet Company on 15 September 2023:

There are also some interesting posts on this thread from Zengas on 10 November 2023 (see post 668 about the Kertang prospect and by Ohisay on 10 December 2023 in post 750 with a back of the envelope valuation of this prospect)

[darcon] 21/12/2023 13:03

By way of recap:

On 13 September 2023 Cavendish wrote the following about the Topaz acquisition in their research note:

"SE Asia Expansion

Longboat Energy has entered into a sales and purchase agreement to acquire privately held Topaz Number One Limited (Topaz), increasing its working interest in Block 2A, offshore Malaysia to 52.5% (previously 36.75%).

Block 2A contains the giant Kertang prospect, a multi-Tcf structure, which displays clear indicators of gas. The transaction simplifies the block partners, ahead of a well decision and the potential introduction of an additional funding partner prior to drilling. The Topaz team will join Longboat, bringing extensive regional expertise and an established network, accelerating Longboat’s ambitions to build a full cycle E&P business in SE Asia.

Significant Potential: Block 2A contains the Kertang prospect, a multi-Tcf, large anticlinal structure with a closure of 200km2. Seismic indicators for the presence of gas can be observed in the area and over the crest of prospect. The low-cost initial work programme will see Longboat mature and derisk the project ahead of a firm well commitment.

Accelerating Drilling: The acquisition will increase Longboat’s working interest to 52.5%, providing the Company with a meaningful operated working interest from which it can farmdown. The new partner structure should also both simplify the process of introducing a funding partner prior to drilling and expediate the process towards a positive well decision.

Adding Extensive Regional Expertise with a Proven Track Record: To aid in the building of fullcycle E&P Company in SE Asia, the Topaz team, comprising of James Menzies and Pierre Eliet will join Longboat Energy’s management team. James and Pierre bring extensive regional expertise and an established network, with part of their employment incentivised on delivery of a SE Asian production acquisition within the next two years.

Consideration Geared Towards Value Delivery: The consideration for the transaction is geared towards the delivery of a number of key milestones. An initial upfront consideration of US$100k is to be satisfied upon completion of the acquisition and is payable through the issue of new Longboat shares. A contingent amount of US$125k is payable in cash or through new shares upon an exploration well being committed on Block 2A or a farm-out. An additional contingent consideration of up to US$3m is payable in cash or through a further issue of shares upon a discovery being made on Block 2A, depending on the resource size and the growth in the price of Longboat shares over a two-year period.

A Successful, Supportive Jurisdiction: Malaysia’s E&P industry shares many of the same characteristics as Norway, where a high barrier for entry results in limited competition and a strong, supportive regulator encourages new entrants. The opportunity set in Malaysia is like that of the North Sea 15-20 years ago, where the majors/supermajors are looking to rationalise their portfolios. Despite having a mature oil & gas industry, Malaysia has enjoyed a huge amount of exploration success in recent years. Of the 16 wells drilled in 2022, 10 resulted in discoveries (a c63% success rate), of which eight were discovered offshore Sarawak."

[darcon] 21/12/2023 12:09

It's nice to see LBE finally announce completion of their Topaz acquisition today.

Today's RNS confirms that LBE "now holds an operated 52.5% interest in Block 2A, offshore Sarawak Malaysia, containing the giant 'Kertang' prospect, simplifying the process towards a positive well decision and the potential introduction of an additional funding partner prior to drilling."

- Great! In layman speak bring on that farm-down process!

I hope that will happen relatively soon. I would hope they've made additional progress since September when they first announced the Topaz acquisition on fine-tuning where they're going to drill, estimates on how much it's all going to cost, etc.

As we saw in the webinars and presentations by LBE the Topaz team almost immediately became part of LBE's SE Asian team following announcement of their Topaz acquisition in September. Today's closing was a legal formality. They're now completely incentivised and aligned within LBE's equity structure which also means one less external party (and their lawyers) to negotiate with about introducing LBE's funding partner.

Petroleum Economist reported in October: "Shell owns neighbouring Block 3 and [Helge Hammer] said any development of Kertang would benefit from Sarawak’s existing gas pipeline and LNG export infrastructure, particularly as the latter requires fresh sources of feed gas. Longboat and its partners have two-and-a-half years remaining on the licence to carry out further studies. Technical work is underway, and Hammer suggested next year could see the planned farm-down of Longboat’s stake, plus a commitment to develop, followed by drilling in 2025, “although the process could take longer”."

[ohisay] 19/12/2023 14:31

...Three technical and commercial experts seconded from Japex arrived in October, and a fourth, a reservoir engineer, will join in April.

“It’s a very nice mix of people. They’re all integrating really well, and I think the organisation is uplifted and energised. It’s kind of exciting, it’s fresh air,” says Salthe, a subsurface expert whose career has centred on the Norwegian continental shelf and includes stints with Shell, Equinor, DNO and Longboat’s predecessors, Paladin Energy and Faroe Petroleum.
The Japanese, Salthe says, bring a new technical and commercial perspective — and crucially, a $100 million financing facility for acquisitions in Norway.

“We’re targeting kind of simple development tie-backs, ideally in the 10% to 30% share. We look at what’s available, and we focus on the things we think we can win. We are a small team, so we have to prioritise, and the Norwegian shelf is very competitive at the moment.”

“Kveikje is our kind of pride and joy,” Salthe says. “Two of our team members are specialists in this injectite play. There’s a lot of excitement in that area. We have the expertise. We have the data for the area. We have positioned ourselves as best we can, and we’re hoping for more success.”

[darcon] 16/12/2023 08:30

Has anyone tried using the Norwegian Petroleum Directorate's new AI tool "Fabriq"?

[ohisay] 15/12/2023 06:07

Yes need both but not much downside there at £10m market cap .

Still getting mentions in the press.


Traditional PSCs still attracting investors

Of the “traditional” exploration blocks offered under MBR 2022, deep water Block 2A has perhaps attracted the most attention since its award to UK-based Longboat Energy in February 2023. Longboat has since increased its equity in the block to 52.5% through the acquisition of the privately held original partner Topaz and its 15.75% stake. Operator Longboat is now partnered by Petronas Carigali (40%) and PSEP (7.5%).

Within Block 2A, the Kertang Prospect lies in 1,000 m of water and comprises a N-S trending anticlinal closure with estimated potential mean prospective gas resources of 8-10 Tcf in multiple stacked Cycle I and Cycle II/III reservoirs.

With prospects of the quality of Kertang and a further 10 exploration blocks and two DROs offered under MBR 2023, Malaysia can certainly be considered as an ongoing “Hotspot” in the APAC region.

[nigelpm] 14/12/2023 21:30

I think you'll do very nicely indeed with a spot of luck and plenty of patience

[ohisay] 14/12/2023 15:03

My last 30k buy just now ..now back sitting on 500k.

Lets see what happens!