Longboat Energy Share Discussion Threads

[ripvanwinkle3] 16/4/2024 15:03

Alistair not prepared to wait any longer for his Brucie bonus, it seems

[pol123] 15/4/2024 22:42

I picked up a further 275k today. share price is again super cheap IMO. With possible drill late 24 early 25 in Malaysia (as stated in the interview). If statements like that are being made partners must be being lined up now. Petro are desperate to drill the prospect. Our production asset now looks like it will over deliver (tick). Then the $100m revolving credit facility......Opportunity abound
Now tell me LBE is not cheap.
I will add further on any weakness. Good job Helge is a rubbish sales person, or should I say not the most charismatic of people. I honestly see LBE c50p in 12 months time given the right news flow

[chutes01] 15/4/2024 13:14

Bye bye Helga

[ripvanwinkle3] 15/4/2024 13:13

Looks like we have another one of the large holders exiting, at a huge loss. Gonna see how low it goes then take the opportunity to further average down. Madness

[hamid1970] 13/4/2024 17:26

We need a CEO with more vision, deals are hardly flying in. By the time H and team pull their finger out, the world will have turned electric

[bomber13] 13/4/2024 08:14

Thanks Zengas .

Page 8 of the presentation has Longboat’s 1000 bpd from Statfjord being reached by mid-June , so no wonder this factor and others support their confidence of repaying the $17m Japex drawdown by end 2024 . As they say in their going concern statement this is a base case assumption on cash flows this year . The Statfjord interest was acquired for $12.75m in mid-2023 , and still looks well on course for payback within 2 years , as they stated at the time .

[zengas] 12/4/2024 12:45

Decent presentation.

I invested at the outset, but you have to bear in mind it was an out and out exploration play back then (as for that matter UPL is now).

For all that, LBE have still made a number of discoveries from that early strategy which the partners are saying you mightn't have heard much about them but they are of importance and will hear of them as development plans for them grow.

I also bought in on the new strategy.

The ridiculous comments about everything they've touched eleswhere has gone bad beggars belief.

The Japex JV $100m financing deal with the possibility of doubling that via debt rbl financing.

The Initial acquisition of 300 boepd which we were waiting on reaching 600 boepd. The delay was outside our control when we are minority partners. I don't hear many picking up on the expectation that it should now reach circa 1,000 boepd which would be 66% upside to our initial conditioning. The Operator has said there is potential to increase the RF = reserves increase but i'm sure this is all lost amongst the short term moaning and those who don't see what has been put together.

They've landed one of the biggest undrilled blocks (52.5%/2A) with a whopping 50% 3D coverage that would cost $millions with multiple large prospects. Just one having 1.5 billion boe recoverable estimate with the rest potentailly adding up to a multiple of that imo. There's about $500m - $1b of possible value (ie c $3/boe on 150 - 300 mmboe on a remaining 10-20% post farm out for Kertang alone if that size discovery is found, with other structures as a future follow on.

Upland languished at .2 then .4 of a penny for 5 years and now with it's Sarawak block, half the size of ours, still not awarded but expected, no 3D, no recoverable estimates and no known net perecentage share to them - yet now at 4.3p today and 4.7p recently on 1.211 b shares = £53-£57m m/cap and about another 150m cheap warrants still to dilute, little cash and crucially not enjoying any income whatsoever.

As for us picking up a a so called small interest. Aet picked up a similar sized producing interest from Ina of barely 150 boepd but it's what you do with them. They languished at under 10p or £22m m/cap and have picked up 3 debt funded interests under a new strategy that took time to execute and are not far of £100m m/cap at 47p today.

At current prices and short ramp up timescale there should be $25m - $28m JV revenue on that 1,000 boepd.

If they can add the right deal on the financing available they could be a 10,000+ boepd producer in Norway. That has to be passed by Japex too what they want to approve not just LBEs management.

A mention that they could land some Sarawak fallow offshore shallow water existing discoveries for development at no cost which imo could add considerable 2C and reclassified to 2P on a dev plan so that's a major one to watch as that team/region has to justify it's formation and growth over an above just block 2A - which will be a second growth arm.

[ohisay] 12/4/2024 04:39

Investor meet video..

[bomber13] 11/4/2024 19:01

Thanks Darcon .

The narrative was thankfully reassuring on Statfjord .

The CEO's point about the significant extra costs incurred being pre-tax in nature so that 78% of them come back as a tax credit next year perhaps should have been put in the RNS to placate the naysayers ? Indeed Longboat seemed so confident of expecting two decades worth of stable production at Statfjord , that the company declared itself interested in buying another 5% to 10% of the satellites , if available .

Offshore Malaysia sounds a hot area for deal-making right now , so farming down Block 2A to a big boy should not be difficult . Having ambitions to add interests in shallower smaller prospects does also seem to go hand in hand with yet another hint at a Japex type funding deal being sought in the region .

Which might explain the CEO's assurance that Longboat was poised to get bigger with as little dilution as possible .

[darcon] 11/4/2024 16:36

According to their presentation today production from the Statfjord Satellites is anticipated to rise to 1,000 boepd net to the JV once the two additional infill wells are brought on. Only minor work is needed for that. Also, the payback period for the transaction hasn't materially deteriorated according to Helge in the presentation as a result of the additional cost associated with the infill drilling. So overall still looks like a good accretive small production M&A deal for LBE Japex Norge and it's good that the JV had the Japex facility to draw on to address the working capital shortfall that arose.

[darcon] 11/4/2024 16:30

Link to today's Longboat presentation:

[darcon] 11/4/2024 10:09

LBE announced the Statfjord Satellites acquisition on 3 July 2023. LBE said then that with the planned in-fill drilling production was anticipated to double in 2024 to ~600 boepd net to LBE Norge.

LBE said the anticipated payback on the transaction was under two years. The transaction also brought tax benefits to LBE and an additional $4m payment.

Subsequently some doubts about the likely success of the in-fill drilling were raised when OKEA postponed the close of its earlier announced Statfjord acquisition from Equinor. However, OKEA ultimately chose to proceed with its acquisition and it subsequently completed at the end of 2023 and it now holds 14%.

As at 1 Feb 2024 LBE/Japex's net production at the Statfjord Satellites was ~370boepd and we were still waiting to see the results of the production ramp-up. Uncertainty remained as to whether the operator would be successful in doubling production as predicted and LBE had walked down the production expectation from doubling to a significant increase.

So I think today's announcement confirming that production has indeed been successfully doubled is fantastic news. I'm very pleased with that.

However, the news about cost inflation and cost overruns also shows the risk of being a small non-operator in such assets. Not much LBE/Japex can do post-acquisition if the project cost overruns or difficulties arise because of conditions deep underground that require more money to be spent.

[katsy] 11/4/2024 09:44

Does 600boe per day not count for anything nowadays?

[danmart2] 11/4/2024 09:09

A Poor show from the board, I will be amazed if japex are not frustrated

[someuwin] 11/4/2024 08:56

11 April 2024

Longboat Energy plc

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

Investor Presentation

Longboat Energy, the emerging full-cycle E&P company, is pleased to announce that Helge Hammer, CEO, Jon Cooper, CFO, Hilde Sathe, Managing Director - Longboat JAPEX, and James Menzies, Executive Charman SE Asia will provide a live presentation via Investor Meet Company on 11 Apr 2024, 15:00 BST.

Investors can sign up to Investor Meet Company and add to meet LONGBOAT ENERGY PLC via:



Investors who already follow LONGBOAT ENERGY PLC on the Investor Meet Company platform will automatically be invited.

The information contained within this announcement is not considered to be inside information prior to its release.

[sporazene2] 11/4/2024 08:24

Any ideas much of the LBE G+A is covered/recharged to the JV? I presume a good amount of it, but not the SE asia G+A plus capex

[ohisay] 11/4/2024 07:57

On Block 2A in Malaysia, we will finalise the evaluation of the giant Kertang gas prospect before running a process to farm down and make the final drilling decision.
We have already been approached by a number of large E&P players who are interested in this exciting exploration prospect.

I'd say that was quite an achievement tbh.

Compare and contrast with UPL ..No cash and no interest in their prospects,

[duckdown] 11/4/2024 07:46

They have been saying the same thing for five years now and achieved nothing.

Utterly useless so far.

[talkman2] 11/4/2024 07:40

The company says it has full confidence to deliver considerable growth and create substantial shareholder value .

[zengas] 11/4/2024 07:33

Production doubled to 600 boepd albeit a few months behind schedule affecting revenues and a cost overrun in the accounting period. 2 wells still to come on stream so potentially 750 boepd to come from this one transaction.

The Kveikje cluster development planned by the operator. Move that to 2P on sanction and that project alone is worth a substantial part or all of the current m/cap.

[ohisay] 11/4/2024 07:29

They said just the same last year ..simply being upfront about needing a small cash raise.
Inconceivable to me that they wont get it away.
Cash balance of £3.7 million as at 31 December 2023.

[ashkv] 11/4/2024 07:26

LBE will be out with begging bowl soon enough - as highlighted in FY 2023 Results / Going Concern section. LBE don't have the funds in place to see through 2024 as a solvent entity...



Statement of going concern

The Directors have completed the going concern assessment, taking into account cash flow forecasts up to the end of 2025, sensitivities to those forecasts and stress tests to assess whether the Group is a going concern. The base case scenario includes the repayment of the Longboat JAPEX facility draw downs at the end of 2024 and makes assumptions around the final development costs and start up dates for the recently acquired Statfjord Satellites development wells, including initial start up of the development wells in April 2024 and the levels of business development activities and their chances of success.



Having undertaken careful enquiry, the Directors are of the view that the Company and Group will need to access additional funds during 2024 in order to fund on-going operations and pursue growth opportunities. This is in line with the Company's current activities of exploring, maturing its discoveries and seeking acquisitions.



The Group is forecast to have limited liquidity during H2 2024 under the base case and will require additional funding. It is anticipated that funding will be sourced through asset disposals, farm downs, the issue of new equity, dilution in the Company's joint venture or a combination of all these actions.

To the extent that growth opportunities will support debt, this will be considered where appropriate for example to support production acquisitions. The financial statements for the period to 31 December 2023 have been prepared assuming the Group will continue as a going concern. In support of this, the Directors believe the liquid nature of asset market combined with historical shareholder support, adequate funds can be accessed when required. However, the ability to access such funding detailed above is not guaranteed at the date of signing these financial statements. As a consequence, this funding requirement represents a material uncertainty that may cast significant doubt on the Group's ability to continue as a going concern. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate.

[ohisay] 11/4/2024 07:22

On Block 2A in Malaysia, we will finalise the evaluation of the giant Kertang gas prospect before running a process to farm down and make the final drilling decision.
We have already been approached by a number of large E&P players who are interested in this exciting exploration prospect.

That looks promising .

Nothing else surprised me overmuch in the results .,,they've said before they will need to raise cash this year ,,evidently H2 now.

[darcon] 10/4/2024 10:20

Zengas - thank you for the correction. I've edited my post 878 to add "more than". At the time I wrote that post I was looking at the fundamental data box in UPL's ADVFN forum page which showed an incorrect lower MCAP figure.

[danmart2] 10/4/2024 08:50

LBE lack of action a concern