Longboat Energy PLC Velocette Well Spud (5719I)

TIDMLBE

RNS Number : 5719I

Longboat Energy PLC

08 August 2023

8 August 2023

Longboat Energy plc

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

Velocette Well Spud

Longboat Energy, an emerging full-cycle E&P company active in Norway and Malaysia, is pleased to announce the commencement of drilling operations on the Velocette (PL1016) exploration well in Norway (Company 20%).

Velocette is a gas-condensate prospect targeting Cretaceous Nise turbidite sands on the eastern flank of the Utgard High in the Norwegian Sea. The prospect benefits from seismic amplitude anomalies indicative of gas-filled sands and is located within tieback distance from the Equinor operated, producing Aasta Hansteen field (45 km).

Velocette is estimated to contain gross unrisked mean resources of 177(*) mmboe (35(*) mmboe net to Longboat JAPEX Norge AS) with a geological chance of success of 30%(*) . A number of follow on opportunities exist within license PL1016 with aggregate gross unrisked mean resources of 200(*) mmboe, which would be significantly de-risked by success in the Velocette well. The key risks associated with this prospect are reservoir presence and quality.

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:

"We are excited to have commenced drilling the Velocette prospect which will be our ninth exploration well. Velocette is a gas weighted opportunity targeting very significant prospective resources. The exploration well also has significant follow-on potential that will be derisked in the case of success."

Notes :

(*) Source: ERCE CPR September 2022, a gas-to-barrel of oil equivalent conversion factor of 5,600 scf/stb

The information contained within this announcement is not 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)                           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. 
 

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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