Longboat Energy PLC Velocette Minor Gas Discovery (9891M)

TIDMLBE

RNS Number : 9891M

Longboat Energy PLC

20 September 2023

20 September 2023

Longboat Energy plc

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

Velocette Minor Gas Discovery

Longboat Energy, an emerging full-cycle E&P company active in Norway and Malaysia, announces a minor discovery at the Velocette (PL1016) exploration well in Norway (Longboat JAPEX Norge AS 20%).

The exploration well 6607/3-1 S encountered hydrocarbons in the primary target in Cretaceous turbidite sands in the Nise formation. The top of the reservoir was reached close to prognosis at a vertical depth of 3348 metres below sea level with 61 meters of high net-to-gross, moderate to very good quality sandstone. Data acquisition indicates a gas column of approximately nine metres in the well.

As the Velocette volumes are at the lower end of pre-drill expectations the discovery is not considered to be commercial in isolation. However, the licence contains numerous other prospects which have been derisked by the presence of gas in good quality reservoir in the Velocette well. The remaining prospectivity has significant size potential in multiple structures and with slightly different trapping geometries. Further assessment of the licence prospectivity together with other opportunities in the area could impact the commercial potential of the licence. High quality data and gas and fluid samples were collected in the exploration well and these will be integrated into the updated prospect evaluations. PL1016 is located within tieback distance from the Equinor operated, producing Aasta Hansteen field (45 km).

The well will now be plugged and abandoned as planned. The license partnership consists of Longboat JAPEX Norge AS (20%), OMV Norge AS (40% operator) and INPEX Idemitsu Norge AS (40%).

Helge Hammer, Chief Executive of Longboat Energy, commented:

"Although we are disappointed not to have made a commercial discovery in Velocette, the presence of good quality sandstone reservoir, which was the main pre-drill risk, and the presence of gas is encouraging. There is significant follow-on potential that has been derisked with this result and we will be working with our joint venture partners to mature these opportunities further."

The information contained within this announcement is considered to be inside information prior to its release.

Ends

 
  Enquiries: 
   Longboat Energy                          via FTI 
   Helge Hammer, Chief Executive Officer 
   Jon Cooper, Chief Financial Officer 
    Nick Ingrassia, Corporate Development 
    Director 
 
   Stifel (Nomad and Joint Broker)          Tel: [phone] 
   Callum Stewart 
    Jason Grossman 
    Ashton Clanfield 
 
  Cavendish Capital Markets Limited (Joint Broker) Tel: +44 20 
  7397 8900 
  Neil McDonald 
  Pete Lynch 
  Leif Powis 
   FTI Consulting (PR adviser)   Tel: [phone] 
   Ben Brewerton 
    Rosie Corbett 
    Catrin Trudgill              [e-mail] 
 
 
  Company 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. Longboat's initial focus has been in Norway where 
  the Company has drilled nine exploration wells resulting in six 
  hydrocarbon discoveries, representing a technical 67% success 
  rate. 
 
  In July 2023, Longboat completed a 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 an initial investment of up to US$20 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 . 
 
  Longboat entered Malaysia in February 2023 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 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 Masters Degree from Faculty of Applied Earth Sciences at the Norwegian University of Science and Technology in Trondheim.

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September 20, 2023 02:00 ET (06:00 GMT)