Longboat Energy PLC PL1049S Jasmine and Sjøkreps (8305E)

TIDMLBE

RNS Number : 8305E

Longboat Energy PLC

04 July 2023

4 July 2023

Longboat Energy plc

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

PL1049S Jasmine and Sjøkreps

Longboat Energy, an emerging full-cycle E&P company with activities in Norway and Malaysia, is pleased to announce that a new licence group has been formed and an extended work period has been granted in Norwegian licence PL1049, which has been stratigraphically split and renamed PL1049S.

Longboat Energy Norge AS holds 40% in PL1049S where the main objective is to pursue the Tertiary play, which has been proven to be successful in the area including in Longboat's Kveikje discovery in PL293B, only 12 km to the East.

Two prospects, Jasmine and Sjøkreps, have been mapped in PL1049S. Longboat previously held 25% in PL1049 where it drilled the deep Cambozola prospect in 2022.

Transaction highlights:

-- Longboat Energy Norge AS increases its prospective resources by forming a new joint venture and retaining a 40% interest in PL1049S

   --    PL1049S contains two prospects in the Tertiary play: Jasmine and Sjøkreps 

-- The prospects will be de-risked by wells committed to be drilled in the vicinity and processing of the existing high quality seismic data before drilling decisions are taken

The Company holds 40% in PL1049S where a new joint venture has been formed with DNO Norge AS as operator holding 40% and with Petoro holding 20%.

Longboat initially held 25% in PL1049 where the deep Cambozola prospects was drilled in in 2022. The target for further exploration in the licence is the shallower levels and the licence has been stratigraphically split. The new licence group is retaining PL1049S where two prospects have been mapped, Sjøkreps and Jasmine, both targeting Tertiary plays. The area is covered with new modern high quality seismic data and combined with new processing techniques, there is significant potential to de-risk the exploration prospects.

Sjøkreps is a fault-bounded three-way dip closure at Palaeocene level and has preliminary estimated recoverable volumes ranging between 20 to 300 mmboe(1) (P90-P10) with the main risk being quality of reservoir.

The Jasmine prospect is an injectite target at Eocene level, which is analogous to the Kveikje discovery, and has recoverable volume range preliminarily estimated between 10 to 30 mmboe(2) (P90-P10) with the main risk being reservoir quality.

The work programme consists of seismic studies, potential seismic reprocessing and integration of results from ongoing and near-term wells targeting the same interval in the area, which combined have the potential to significantly improve the Chances of Success ahead of making a drill decision. The drilling decision has to be made by February 2025.

Longboat Norge AS will shortly become a joint venture between Longboat Energy and Japan Petroleum Exploration Co., Ltd ("JAPEX") on completion of the investment into Longboat Norge by JAPEX announced on 2 May 2023.

Helge Hammer, Chief Executive of Longboat Energy, commented:

"We are pleased to be able to retain PL1049S in an area which has seen considerable exploration success in recent years including our own Kveikje discovery in April last year. It is exciting that with new high quality seismic data together with our substantial in-house expertise, we have a unique opportunity to de-risk exploration opportunities and add new resources in this very prolific part of the Norwegian North Sea.

"We look forward to working with DNO and Petoro to mature the Jasmine and Sjøkreps prospects and build our position in this key area where we already have the Kveikje discovery and will be drilling the Kjøttkake (formerly Lotus) prospect next year."

References:

Company numbers (1)

Operator numbers (2)

Notes :

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

Ends

 
 Enquiries: 
  Longboat Energy 
   Helge Hammer, Chief Executive Officer                                    via FTI 
                                                  --------------------------------- 
   Jon Cooper, Chief Financial Officer 
                                                  --------------------------------- 
   Nick Ingrassia, Corporate Development Officer 
                                                  --------------------------------- 
 
   Stifel Nicolaus Europe Limited (Nominated 
    Adviser and Joint Broker) 
                                                  --------------------------------- 
   Callum Stewart                                             Tel: [phone] 
                                                  --------------------------------- 
   Jason Grossman 
                                                  --------------------------------- 
   Simon Mensley 
                                                  --------------------------------- 
   Ashton Clanfield 
                                                  --------------------------------- 
 
   Cenkos Securities plc (Joint Broker) 
                                                  --------------------------------- 
   Neil McDonald                                              Tel: [phone] 
                                                  --------------------------------- 
   Pete Lynch 
                                                  --------------------------------- 
   Leif Powis 
                                                  --------------------------------- 
 
   FTI Consulting (PR adviser) 
                                                  --------------------------------- 
   Ben Brewerton                                              Tel: [phone] 
                                                  --------------------------------- 
   Rosie Corbett                                   [e-mail] 
                                                  --------------------------------- 
 

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. Since June 2021, Longboat has entered a series of four transactions to acquire interests in a portfolio of nine, gas-weighted exploration wells drilling on the Norwegian Continental Shelf close to existing infrastructure. To date, eight of these wells have been drilled resulting in five hydrocarbon discoveries, representing a technical 63% success rate.

In February 2023, Longboat entered Malaysia through the award of a Production Sharing Contract for Block 2A, offshore Sarawak. Block 2A covers approx. 12,000km(2) and is located in water depths of between 100-1,400 metres where a number of large prospects across multiple plays have been identified, with significant volume potential representing multiple trillions of cubic feet of gas.

In May 2023, the Company announced that agreement had been reached with Japan Petroleum Exploration Co., Ltd ("JAPEX") to make a significant investment into its Norwegian subsidiary, Longboat Energy Norge AS ("Longboat Norge"), to form a joint venture. Under this agreement, JAPEX will make a cash investment of up to US$50 million for 49.9% of Longboat Norge and provide the Joint Venture with a US$100 million Acquisition Financing Facility to finance acquisitions and associated development costs.

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.

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

 
 "2P Reserves"   The sum of proved and probable reserves. Denotes the 
                  best estimate scenario of reserves 
 "boe"           Barrels of oil equivalent 
                -------------------------------------------------------- 
 "boepd"         Barrels of oil equivalent per day 
                -------------------------------------------------------- 
 "mmboe"         Million barrels of oil equivalent 
                -------------------------------------------------------- 
 "P10"           The quantity for which there is a 10% probability that 
                  the quantities actually recovered will equal or exceed 
                  the estimate. 
                -------------------------------------------------------- 
 "P90"           The quantity for which there is a 90% probability that 
                  the quantities actually recovered will equal or exceed 
                  the estimate 
                -------------------------------------------------------- 
 

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July 04, 2023 02:00 ET (06:00 GMT)