Longboat Energy PLC Production start for Statfjord Øst project (5453K)

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RNS Number : 5453K

Longboat Energy PLC

29 August 2023

29 August 2023

Longboat Energy plc

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

Production start for Statfjord Øst project

Longboat Energy, an emerging full-cycle E&P company with activities in Norway and Malaysia, is pleased to note the following announcement made by Equinor confirming the production start for the Statfjord Øst project (Company 4.80%).

On 3 July 2023 the Company announced the acquisition of a 4.80% unitised interest in the Statfjord Øst Unit and a 4.32% unitised interest in the Sygna Unit and where completion is expected before the year end. -----------

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With this project, Equinor and its partners expect to increase production by 26 million barrels of oil equivalents from Statfjord Øst.

The project is completed with sound safety results and is expected to deliver within estimated cost, despite the inflation and weakened Norwegian krone. Production starts six months ahead of schedule.

Two new wells have been drilled from existing subsea templates, and three additional wells are to be drilled. Statfjord Øst is tied to the Statfjord C platform, and the project includes a modification on Statfjord C and laying of a new pipeline for gas lift to the subsea wells.

This is a good example of how we work with mature fields. Equinor aims to be a leading operator of late-life fields on the NCS. That means that we need to find new ways of working to reduce costs. Together with our partners we have developed simpler and faster solutions while maintaining high quality," says Ketil Rongved, Equinor's vice president for FLX projects.

The oil recovery rate from the field is expected to rise from 58 to 63 percent as a result from this project. Statfjord Øst started producing in 1994. The field is located five kilometres from Statfjord C.

The project was decided by the partnership in 2020 and approved by the Ministry of Petroleum and Energy in 2021.

"This proves the importance of extending the life of mature fields and maximizing value creation from existing infrastructure on the Norwegian continental shelf (NCS). The project contributes to extending the life of Statfjord C to 2040. The profitability is high, and the value of increased production equals around NOK 20 billion at the current oil price. This is good use of resources which provide ripple effects for Norwegian suppliers," says Camilla Salthe, Equinor's senior vice president for Field Life eXtension (FLX).

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

 
 Enquiries: 
 Longboat Energy                          via FTI 
 Helge Hammer, Chief Executive Officer 
 Jon Cooper, Chief Financial Officer 
  Nick Ingrassia, Corporate Development 
  Director 
 
 Stifel (Nomad)                           Tel: [phone] 
 Callum Stewart 
  Jason Grossman 
  Ashton Clanfield 
 
 

Cenkos Securities plc (Joint Broker) Tel: [phone]

Neil McDonald

Pete Lynch

Leif Powis

 
 FTI Consulting (PR adviser)   Tel: [phone] 
 Ben Brewerton 
  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. To date, Longboat's main focus has been in Norway where si nce June 2021, the Company has entered into a series of transactions to acquire interests in a portfolio of exploration assets close to existing infrastructure. So far, eight of these wells have been drilled resulting in five hydrocarbon discoveries, representing a technical 63% success rate.

In July 2023, Longboat completed the transaction with Japan Petroleum Exploration Co., Ltd ("JAPEX") to form a new joint venture company in Norway named Longboat JAPEX Norge AS. Under these arrangements, JAPEX will make a cash investment of up to US$50 million, of which US$16 million was paid on completion, for a 49.9% shareholding in of Longboat JAPEX Norge AS and provide the Joint Venture with a US$100 million Acquisition Financing Facility to finance acquisitions and associated development costs. Longboat retains 50.1% ownership in Longboat JAPEX Norge AS.

Also in July 2023, Longboat JAPEX Norge AS announced its first production acquisition in Norway of interests in the Statfjord satellite fields, Statfjord Øst and Sygna .

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.

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 2022.

Review by Qualified Person

The technical information in this release has been reviewed by Hilde Salthe (Managing Director Longboat Energy Norge AS), 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.

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