Longboat Energy Share Discussion Threads

[bumpa33] 17/6/2024 10:51

That CPR should bring a lot more eyes on this with the kind of numbers we’re expecting. They’ll have it by the time of the Proactive 27th talk. Until then there is a window of opportunity open…

[stockhunters] 17/6/2024 10:37

If you include all cash then all assets currently only valued at £1.5-£2million

[katsy] 17/6/2024 10:32

Didn't Zengas find that they registered Topaz energy or something like that at companies house, maybe that's what they'll change their name to, seeing as we don't have anything to do with Norway anymore.

[bumpa33] 17/6/2024 10:25

Value proposition is insane and better than any other oiler I know at this price point. Yes Norway was a failure, but we are a new entity from here on in, clear of any liability from Norway and clear of the funding questions arising from that. New CEO and board, new geographical and operational focus, huge prospects and a clear pipeline of upcoming news. Time for a name change, time to look to the (not too distant) future.

[someuwin] 17/6/2024 10:20

Cavendish...

LONGBOAT ENERGY JV Holding Sale and Norway Exit

In light of the near-term working capital challenges and the continued absence of value-accretive acquisition opportunities, LBE has announced the divestment of its 50.1% shareholding in the Longboat Japex Norge JV to its JV partner JAPEX and its exit from Norway. In consideration, JAPEX will pay LBE US$2.5m in cash and will assume LBE’s share of the drawn debt under the JAPEX acquisition facility (US$8.5m net), for an aggregate consideration of US$11m. The proceeds will be directed to fund LBE’s working capital and operations in Malaysia, where LBE has greater value-creation potential. Key to this value proposition is the Kertang prospect – one of the largest undrilled structures offshore Malaysia.

- An Undrilled Giant: LBE has a 52.5% operated interest in Block 2A, offshore Sarawak. Block 2A contains the Kertang prospect, one of the largest undrilled structures in Malaysia at >200sqkm and estimated to contain 8-10Tcf of gas. Given the potential scale of Kertang, and the existing industry interest, LBE intends to run a farm-out process during H2/24 to identify a partner. LBE is expected to release an updated competent persons report (CPR) on the prospect at the end of June.

- Follow on Opportunities: LBE has provisionally been awarded acreage in shallow water offshore Sarawak containing several gas discoveries capable of near-term development. While details are limited at this stage, we expect to see this type of low-cost resource capture going forward giving the business significant optionality to grow its portfolio through its strategic positioning.

- A Proven SE Asian Track Record: Through CEO Nick Ingrassia, Executive Chairman James Menzies and EVP Corporate & Business Development Dr. Pierre Eliet, LBE has extensive experience and network in the SE Asia region. Nick and James were previously at Salamander Energy, a >14,000boepd, London-listed SE Asia focussed E&P company which was acquired by Ophir Energy for £314m in 2015.

- Right Sizing the Business: The strategic pivot away from Norway allows LBE to streamline and reset its cost base, including a reduced board and management team. These measures are anticipated to result in annual savings in excess of US$$1.25m from the start of 2025. These savings, combined with the consideration from the sale of LBE’s interest in Longboat Japex, are forecast to provide sufficient capital through to the end of Q1/25 and we expect LBE will seek to further reduce its cost base.

- A Strong Macro Story: Between 2012-22, primary energy consumption growth in SE Asia has increased by c2.6% pa; this is the highest of any region globally. Equally, there is a huge carbon emissions reduction opportunity in SE Asia by using natural gas as a replacement for coal, which currently makes up 47% of SE Asia’s primary energy consumption. Further, SE Asia has been a hotspot for M&A activity in recent years, as the independents look to secure assets from the supermajors (e.g. Hibiscus’s acquisition of TotalEnergies’ interest in Block B, offshore Brunei).

- Valuation Under Review: We place our valuation under review pending the release of the announced CPR at Kertang – expected at the end of June around the time of the AGM.

[jungmana] 17/6/2024 10:02

I increased my holding by 50% this morning. a huge opportunity at this level for the long term investor.

[bumpa33] 17/6/2024 08:25

patience. Kertang CPR in the next two weeks, and we’ll get a real handle on the size of the prize…

[captain james t kirk] 17/6/2024 08:24

LONGBOAT ENERGY PLC will be holding a Post AGM Investor Presentation meeting on 27th Jun 2024 at 11:30am BST.

[bumpa33] 17/6/2024 08:19

Now, let’s see if we can close that gap over the days/weeks to come and the damage caused by Bruce dumping…

[cashandcard] 17/6/2024 08:16

Great News

[the sage] 17/6/2024 08:10

Morning all. Just joined the party, looks good.

[nigelpm] 17/6/2024 08:09

Can't blame Bruce for that thinking but looks like he was wrong.

[katsy] 17/6/2024 08:08

Now we're leaving Norway, the two remaining wells will probably come on stream at whooping production rates. lol.

No excellent news. The assets we have, should be worth near term at least £15m or 30p thereabouts

[arcteryx] 17/6/2024 08:07

Bruce got robbed, had been expecting a fund raise and dilution?

[ohisay] 17/6/2024 07:48

Now UPL really does look expensive !

[ohisay] 17/6/2024 07:46

Just as I thought and pleased I just about doubled my holding ..

BTB I noticed overnight that the Japanese Ambassador had visted the Longboat Japex offices 2 days ago so clearly a long time in the making .

[stockhunters] 17/6/2024 07:44

Reads ok but is the price they got much lower than expected?

[darcon] 17/6/2024 07:42

The exit from Norway is the right move in view of the circumstances.

The sooner they can complete and fully clean up their capital structure the better.

LBE’s Malaysian opportunities have the potential to deliver a lot of value. Can LBE’s streamlined team deliver? I think yes.

[jungmana] 17/6/2024 07:42

And the money is enough for next 9 months. Am happy with the news

[bumpa33] 17/6/2024 07:40

$2.5m in cash and all debt ($8.5m) cleared ain’t bad imo.

[jungmana] 17/6/2024 07:39

"Longboat is pleased to announce that it has provisionally been granted an award, subject to the successful negotiation of certain key contractual terms, for acreage in shallow water offshore Sarawak containing several material, undeveloped gas fields capable of near-term development. These resources are an important addition to Longboat's growing Asian portfolio". 

[nigelpm] 17/6/2024 07:36

Horrible price but they are out and immediate funding worries gone assuming transaction completes. On balance good news and relief.

[molatovkid] 17/6/2024 07:34

Fresh start, no skeletons left in the closet with Norway, cash and farm out interest with big boys in Malaysia.Sounds like about the best we could hope for.