Longboat Energy Share Discussion Threads

[basem1] 22/2/2024 08:32

I sold 60k at 21.2 on the last spike and decided I needed back in a few seconds after 8

[jailbird] 22/2/2024 08:26

Something has leaked here?
decent volume buyers since yesterday

[bomber13] 21/2/2024 18:11

Thanks Zengas and Darcon for your excellent narrative here .
Offshore Norway has been a reasonably slow burn so far , and the first bite of producing assets may have cost a tad more than expected , but the pace , execution and delivery will undoubtedly pick up speed now with Japex’s cheque book .
As for offshore Malaysia , the market has not even twigged yet at either the size of the prize or the quality of the people .

[chutes01] 21/2/2024 16:38

good stuff, adding.

[zengas] 21/2/2024 16:32

Just for you Chutes. The share price is no reflection of the current assets and easy, very easy to be downbeat at any point in time on any stock.

I remember it being a painfully slow burn so to speak at Sterling waiting for the asset injection which happened with the new strategy in May 21 and a rename. Could have been picked up at 8.5p Dec 19 and 14.5p in late 21 - now 41p and only the start for more acquisitions.

Likewise look at Serica 43p in March 2012 and could have been picked up in the 3p range Jan - April 2015 and at 5p to Sept that year.

90p Jan 2018. 57p 6 months later end of June.

140p range Feb 2019 - Jan 2020.

150p+ mid 2021

420p early 2022 retreating to 245p May 2022..

Averaged 240p for 2023.

Jan 2024 220p to it's current 178p.

12/6/22 - 'Britain's savviest investment couple are sitting on shares worth more than £80million after good news last week from Serica Energy. David and Debbie Hardy, who run a Midlands building firm, are the largest shareholders in the North Sea energy producer. Serica's shares to £2.90, sending the value of the Hardys' 10.4 per cent soaring to £82million. David, 63, and Debbie, 58, bought into the business for as little as 3p a share.'



I see someone perhaps equally canny has bought and increased to 4m here or 7% up from 6% back in October.

We have the first Norwegian albeit small production assets/reserves with a ramp up in production as wells come on line this quarter.

More to come since the new strategy announced and the legacy discoveries also injected into the JV.

$100m funding from Japex for the Norwegian JV since it was set up in the last 9 months with the Japanese govt as a major investor in Japex.

On the 2nd front (Malaysia.) An asset in Block 2A with 9 TCF estimated mid case recoverable in one prospect alone (multiple prospects) added in the last 9 months which has the potential for $1b of value creation even on a 20% post farmout retention and has some $20m+ of 3D spend. As evidenced by the valuation given to the Sapura-OMV JV last month by Total Energies takeover posted above.

More Malaysian/S.E Asia assets to come.

£11m m/cap at 18.75p.

PIs happy to pay 4p last few months at UPL valuing it at £48m on nothing else other than an unknown stake in an unawarded Sarawak block with very limited 2D and zero 3D.

Like i said, it depends on your entry point relative to the strength/potential of all new and upcoming assets under the new strategy.

[chutes01] 21/2/2024 16:12

Go on then ...

[katsy] 21/2/2024 16:08

Even those who bought at £1 should see a profit if the numbers talked about by Zengas come true. Even £100m Mcap would be circa £2 per share, given all things equal.

[zengas] 21/2/2024 15:39

Depends where your entry point is as an investor so in that case some perhaps, but definitely not all.

[chutes01] 21/2/2024 13:19

All good stuff, but meanwhile investors sit underwater and look on
Go on then ...

[zengas] 21/2/2024 12:44

OMV seem to have gotten what they paid for the Sapura interest when the JV was formed in 2019 (9/11/18) on top of 5 years production income.

At the time Sapura had 260 mmboe 2P reserves and 2C resources. This went into the newly formed 50-50 Sapura/OMV JV ie 130 mmboe (or in gas around 0.8 TCF).
As OMVs Chairman (J Pleininger) said at the time - production trebled from 10,000 boepd at the time to around 36,000 boepd for the JV at the time of the present sale (Jan 2024) to Total Energies for $903m.

There has been significant production over the last 5 years. The large Jerun Gas field to start production later this year.

This from November 2018 -

'Sapura and OMV inked a joint venture (JV) agreement for the strategic partnership today, as a follow-up to a Heads of Agreement (HoA) signed between the two parties on Sept 12.

The deal entails OMV subscribing to 50% of the enlarged issued share capital of Sapura Upstream for US$540 million, and to repay US$350 million worth of shareholders’ loan owed by Sapura Upstream to Sapura Energy.

This marks a cash consideration of US$890 million to Sapura Energy.

OMV also agreed for an additional consideration worth US$55 million plus up to another US$30 million in contingency funds mainly linked to the resource volume in Block 30, Mexico at the time of taking the final investment decision.

Under the agreement, OMV will fully consolidate the JV company’s assets in its financial statements, which comprises 260 million barrels of oil equivalent (boe) in proven and probable (2P) and contingent (2C) reserves,

“Already right now, [the JV] has a great portfolio that is fit for growth. So what we are aiming for is to triple the production in the next two years from close to 10,000 boe/d currently to 30,000 boe/d in 2020,” said Pleininger.

[zengas] 21/2/2024 11:52

So our new head of exploration in Malaysia (Matthew Choo) has just joined LBE in the last month with a substantial track record.

Has just come from the Sapura-OMV joint venture after 5 years.

Before that over 5 years with Sapura.

Interesting that he was involved with SK310, SK408 and our own block 2C in the last decade which just never got drilled.

The Sapura-OMV JV was created in 2019 and OMV sold their 50% stake in the JV a few weeks ago for $900m.

TotalEnergies Signs an Agreement for the Acquisition of OMV’s Upstream Gas Assets in Malaysia

PARIS--(BUSINESS WIRE)--Jan. 31, 2024-- Regulatory News:

TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) has signed an agreement with OMV to acquire its 50% interest in Malaysian independent gas producer and operator SapuraOMV Upstream Sdn (SapuraOMV) for a consideration of $903 million (including the transfer of a $350 million loan granted by OMV to SapuraOMV), subject to customary closing adjustments.

SapuraOMV’s main assets are its 40% operated interest in block SK408 and 30% operated interest in block SK310, both located offshore Sarawak in Malaysia. In 2023, SapuraOMV’s operated production (100%) was about 500 Mcf/d of natural gas, feeding the Bintulu LNG plant operated by Petronas, as well as 7 kb/d of condensates. On block SK408, the development of the Jerun gas field is on track for startup in the second half of the year 2024



and

'Block SK 408 contains seven discoveries from eight wells drilled. Five of the seven are understood to be commercial, and three are in the development stage – Gorek, Larak and Bakong, which have resource sizes ranging from 0.5 Tcf to 1.5 Tcf.

The jewel in the crown in Block SK 408 is the 2016 Jerun gas discovery, which contains up to 3 Tcf.'



Basically that's a $900m sale of 20% in SK408 and 15% in SK310 equal to net production of around 18,000 boepd.

SK310 (B15 field) has produced about 68% of its reserves according to one energy report.

Are we talking about 1.2 - 2 tcf net sale ? There's also a small interest in a Mexican oil discovery of which they are a minority partner.

LBEs Block 2C with Kertang estimated at 9 TCF mid recoverable. Multiple other prospects and 2 are each half the size of Kertang and covered by 3D so perhaps 15 TCF and if 20% retained on farmout could mean 1.8 - 3 TCF net target.

[danmart2] 16/2/2024 17:18

Difference being LBE board have not achieved a lot, the jury is very much out, investors getting fed up

[darcon] 16/2/2024 11:16

Enquest yesterday issued their full year 2023 operations update (see: They stated they're going to "pivot [their] business to refocus on future growth during 2024" and "the Group is focused on [...] the pursuit of value-accretion and transformational production acquisitions, both in the North Sea and internationally."

Enquest (ENQ) have a sizeable producing Malaysian operation ( "In Malaysia production averaged 7,437 Boepd; 15% up on 2022, underpinned by strong operational performance (90% production uptime). Production also includes 604 Boepd associated with Seligi 1a gas (produced and handled by EnQuest on behalf of Petronas, in exchange for a gas handling and delivery fee)."

With the high tax rates / windfall tax in the UK it would seem logical that some of that ENQ future growth and value accretive and transformative production acquisition activity may be channelled towards Malaysia and/or elsewhere in SE Asia.


... which happens to be where LBE is also looking for value accretive production growth ...

[danmart2] 07/2/2024 15:34

That may be the case, I don’t have any more detail beyond what I have shared.
Let’s give them until the summer and then I will either move on or stay put.

[chutes01] 06/2/2024 23:11

several small deals and it just gets too messy, not what the market is looking for here after mediocre drilling success, with their backing they need to deal into 10kBbls/day stuff, then hope for success with drill bit.

[cashandcard] 06/2/2024 23:08

danmart2,Interesting. But what you indicate is exactly why the market is pretty cool on this one. Small % deals on some small-scale development are not going to change the dial for investors.Kertang however, well that is company making. Its the opportunity it offers.Cash

[ohisay] 06/2/2024 12:40

Really excellent article on Who's Who in Malaysia (by Robert Chambers).

[danmart2] 05/2/2024 14:51

They are negotiating on a deal in Norway (possibly more deals but I have been told about 1), not massive deal but positive

[danmart2] 04/2/2024 17:44

It’s all about the payback

[bomber13] 02/2/2024 17:54

Might this be the reason for the yawn in the Longboat shareprice in the last two days ?

Here is what was said on 3rd July , 2023 about the financing of the Statfjord Satellites acquisition . The transaction had a base cost of $12.75m , and an effective date of 1st January , 2023 -

" The Transaction and subsequent capital expenditures on the Statfjord Satellites will be funded by a combination of existing cash on hand in Longboat Norge and the pending investment by JAPEX, made up of the initial US$16 million base investment (less repayment of the intercompany loan to Longboat of approximately US$4.75 million) and the additional US$4 million contingent payment previously agreed with JAPEX which will be triggered by the Transaction. A portion of the US$100 million Acquisition Bridge Facility, provided by JAPEX in relation to its investment into Longboat Norge, is also available should it be needed. "

And here is what was said of the financing yesterday -

" The acquisition of the Statfjord Satellites has been funded by a combination of the investment by JAPEX into Longboat JAPEX announced last year and a drawing of approximately US$15 million on the Acquisition Bridge Facility provided by JAPEX to the Joint Venture. The drawing is greater than originally forecast due to negative working capital movements related to delays in bringing new wells on-stream during 2023."

[jailbird] 02/2/2024 16:17

Thks guys for your input here,
good reading

[someuwin] 02/2/2024 16:17

No buy quote available now.

[katsy] 02/2/2024 15:51

I should have some funds coming my way next week. Would like a top up at these prices so stop talking this up. It's a dog, nobody wants oil or gas anymore. What do Norwegians know about gas anyway. £10.6m Mcap for this dog, you're having a laugh

[darcon] 02/2/2024 15:35

Zengas - I agree with your points.

The Japex team have now been embedded within the LBE team for about 6 months. So I'd expect to see new Norwegian deal(s) being signed within the next 6 months.

I think it's a hugely positive sign that LBE were able to access the Japex facility. It proves that the finance is there and available. The positive statement about Japex's contribution in the RNS is also important to note in my view.

It's incredible that LBE were able to get their hands on that Kertang prospect. Very astute on their part.

[cashandcard] 02/2/2024 15:26

Great post Zengas. I am intrigued by Kertang exposure here. Gonna put some away in the ISA and SIPP with a bunch of Namibia (Orange basin) focussed smallcaps.Cash