TIDMLBE
RNS Number : 3139A
Longboat Energy PLC
01 June 2021
NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, IN WHOLE OR IN
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WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAW OR
REGULATION OF SUCH JURISDICTION.
This announcement is not an admission document or a prospectus
and does not constitute or form part of an offer to sell or issue
or a solicitation of an offer to subscribe for or buy any
securities nor should it be relied upon in connection with any
contract or commitment whatsoever. Investors should not purchase or
subscribe for any transferable securities referred to in this
announcement except in compliance with applicable securities laws
on the basis of the information in the admission document (the
"Admission Document") to be published by Longboat Energy plc in
connection with the placing of ordinary shares by the Company and
the proposed admission of its issued and to be issued ordinary
shares to trading on AIM, a market operated by London Stock
Exchange Plc. Before any purchase of shares, persons viewing this
announcement should ensure that they fully understand and accept
the risks which will be set out in the Admission Document when
published. Copies of the Admission Document will, following
publication, be available during normal business hours on any day
(except Saturdays, Sundays and public holidays) from the registered
office of the Company and on the Company's website.
1 June 2021
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Proposed Farm-Ins to High Impact Drilling Programme,
Proposed Fundraising and Trading Suspension
Longboat Energy, established by the former management team of
Faroe Petroleum plc to build a significant North Sea-focused
E&P business, is pleased to announce it has reached agreement
on a bilateral basis with three separate counterparties to acquire
a significant, near-term, low-risk exploration drilling programme
on the Norwegian Continental Shelf ("NCS") structured as three
farm-in transactions (together the "Farm-Ins" or the
"Transactions").
Longboat further announces its intention to carry out a proposed
equity financing to raise gross proceeds of GBP35 million, to be
conducted by means of a placing and subscription for new ordinary
shares in the Company (the "Proposed Fundraising"). The net
proceeds from the Proposed Fundraising will be used principally to
finance the consideration for the Farm-Ins and costs associated
with the high-impact drilling programme, as well as the acquisition
of certain seismic data and general corporate costs.
The Transactions are classified as a reverse takeover pursuant
to the AIM Rules for Companies and accordingly the Company's shares
will be suspended from trading on AIM as of 7:30am today. The
Company's ordinary shares will remain suspended from trading on AIM
until such time as either an Admission Document setting out details
of the proposed Farm-Ins is published or confirmation is given that
the Transactions are not proceeding. Completion of the Farm-Ins and
Proposed Fundraising are subject to approval by Longboat's
shareholders at a general meeting to be convened in due course (the
"General Meeting"). The Admission Document, which will include a
notice of General Meeting, is expected to be issued following
pricing of the Proposed Fundraising.
Highlights of the Proposed Farm-Ins
-- High activity level : seven wells expected to be drilled in
the next 18 months, with the first well expected to spud in Q3 2021
and a further three wells expected to drill before year-end;
-- Significant resource potential : initial drilling programme
targeting net mean prospective resource potential of 104 MMboe(1)
with an additional 220 MMboe(1) of upside and follow-on
prospectivity;
-- Low cost, low risk portfolio : acquisition costs and drilling
programme fully eligible for 78% Norwegian tax refund and Chances
of Success in the range of 25-55%(1) for all-but-one high-impact
prospect;
-- Norway delivering outstanding exploration results : Norwegian
success rates of almost double global rates in 2020, year-to-date
in 2021 at 70%(2) ;
-- Matches Longboat's ESG objectives : a gas-weighted portfolio
with all prospects within tie-back distance to existing
infrastructure with the potential to reduce emissions per barrel
produced and contribute positively to decarbonisation projects;
and
-- Value creation : Net Asset Value ("NAV") creation potential
of over $1 billion(1) based on precedent transactions on the NCS
for development assets.
The three separate Farm-Ins have each been negotiated on a
bilateral basis to create a tailored exploration drilling portfolio
with a balanced risk/reward profile. The Farm-Ins are corner-stoned
with a single, multi-licence deal with a major oil & gas
company which is one of the most active and successful explorers on
the NCS. The Farm-Ins represent an opportunity to take advantage of
cyclical budget cuts in the sector to accelerate Longboat's first
steps towards building a full-cycle E&P company. The
high-quality nature of the portfolio is evidenced by the vendors
retaining interests in six of the seven targets included in the
Farm-Ins.
The consideration for the Farm-Ins will be settled via a cost
carry by Longboat on behalf of the vendors and is fully eligible
for the Norwegian tax refund system. The post-tax cost to Longboat
of the carry element of the transaction is approximately $7.8
million ($35 million pre-tax), representing $0.07 per prospective
boe on a post-tax basis.
Proposed Fundraising Highlights
Longboat announces its intention to carry out a Proposed
Fundraising to raise gross proceeds of GBP35 million. The Proposed
Fundraising will consist of a placing of new ordinary shares (the
"Placing Shares") in the Company to qualifying existing and new
investors (the "Placing") as well as a direct subscription for new
ordinary shares in the Company (the "Subscription Shares") by
certain directors, founders and senior management of Longboat (the
"Subscription").
The Placing is being managed by Stifel Nicolaus Europe Limited
and DNB Markets, a part of DNB Bank ASA (the "Joint Bookrunners").
The Placing is being conducted through a bookbuild process (the
"Bookbuild"). On the current timetable, the Company expects to
close the Bookbuild no later than 8:00 am on 10 June 2021, but the
Joint Bookrunners and the Company reserve the right to close the
Bookbuild earlier or later, without further notice.
In addition, to support the financing of the Farm-Ins, Longboat
has arranged a NOK 600 million (GBP52 million) Exploration Finance
Facility ("EFF") provided by SpareBank 1 SR-Bank ASA and ING Bank
N.V. The EFF finances 74% of exploration expenditure, reducing the
working capital Longboat requires to fund the exploration
portfolio. The EFF will be available for drawing from January 2022
until the end of 2023 with a final maturity in 2024.
The Proposed Fundraising and EFF, alongside existing cash
resources and Norwegian tax refunds, will be used to finance the
consideration costs of the Farm-Ins and initial seven wells in the
drilling programme, as well as the acquisition of certain seismic
data and corporate costs.
Temporary Suspension of Trading
The Farm-Ins constitute a reverse takeover in accordance with
Rule 14 of the AIM Rules for Companies. A further announcement with
full details of the Farm-Ins will be issued on completion of the
Proposed Financing and an AIM admission document setting out, inter
alia, details of the Farm-Ins (including a competent person's
report) will be published on Longboat's website, along with a
notice of general meeting. Accordingly, at the request of the
Company, the Company's ordinary shares will be suspended from
trading on AIM with effect from 7:30 am today and will remain so
until either the publication of an AIM admission document or until
confirmation is given that none of the Farm-Ins is proceeding.
The Company will release further announcements as and when
appropriate.
Helge Hammer, Chief Executive of Longboat, commented:
"After Faroe was sold for c.$900 million in 2019, the management
team formed Longboat to replicate that success. I am very pleased
that Longboat is taking over where Faroe left off with a unique
opportunity for shareholders to invest in a high-impact, low-risk,
multi-well exploration drilling programme. Thanks to our excellent
industry relationships, developed over many years of operating in
the North Sea, we have negotiated three bilateral agreements to
deliver a bespoke drilling programme. We look forward to a busy
period of almost continuous drilling and frequent catalysts during
the next 18 months.
"This represents a unique opportunity which accelerates
Longboat's ambition to build a full-cycle E&P company."
For the purposes of UK MAR, the person responsible for arranging
for the release of this announcement on behalf of Longboat is
Julian Riddick, Company Secretary.
The information contained within this announcement is considered
to be inside information prior to its release, as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 which is part
of UK law by virtue of the European Union (Withdrawal) Act
2018.
Ends
(1) Source - draft competent persons report to be published in
AIM admission document
(2) Source - as announced by NPD based on geological success
rates
Enquiries:
Longboat Energy
Helge Hammer, Chief Executive Officer via FTI
Jon Cooper, Chief Financial Officer
Nick Ingrassia, Corporate Development
Director
Stifel Nicolaus Europe Limited (Nominated Adviser, Joint Bookrunner
and Broker)
Callum Stewart Tel: +44 20 7710 7600
Jason Grossman
Simon Mensley
Ashton Clanfield
DNB Markets, a part of DNB Bank ASA (Joint Bookrunner)
Halvor Teslo demand@dnb.no
Christoffer Gundersen
Aksel Thue
FTI Consulting (PR adviser)
Ben Brewerton Tel: +44 20 3727 1000
Sara Powell longboatenergy@fticonsulting.com
Background and Reasons for the Farm-Ins
Longboat Energy was established by the ex-Faroe Petroleum Plc
("Faroe Petroleum" or "Faroe") management team to create a
full-cycle North Sea E&P company through value accretive
M&A and low-risk, near-field exploration. The management team
has a proven track record of delivering value to shareholders
through exploration success, accretive acquisitions and farm-ins,
and a demonstrated ability to monetise discoveries through sales
and asset swaps. At Faroe, the team grew reserves from 19 MMboe to
98 MMboe between 2013 and 2018, a compounded annual growth rate of
approximately 39%. The team monetised numerous assets through
development and active portfolio management, including asset swaps
and sell downs. Faroe Petroleum was sold to DNO ASA in January
2019, providing a Total Shareholder Return of 129% to investors
from the previous equity fundraise.
Since its IPO on AIM in November 2019, the Company has been
pursuing potential acquisitions, utilising its substantial industry
network in the North Sea oil and gas industry to identify
attractive opportunities. The Company has secured three,
bilaterally negotiated farm-in opportunities, which provide a
highly attractive and tailored portfolio of material, near-term,
low-risk exploration wells on the NCS close to existing
infrastructure. The payment of carried interest and forward
exploration spending on the licences is fully eligible for the
Norwegian tax refund system, substantially enhancing the net
transaction metrics with a post-tax acquisition cost equivalent to
$0.07 per prospective barrel of oil equivalent.
The licence vendors are all leading NCS participants and in all
but one of the wells the vendors are retaining a meaningful stake
in the licences, demonstrating the attractiveness of the
opportunities.
The Farm-Ins provide the Company with a hand-picked portfolio
and material drilling programme, including seven attractive
exploration wells over the next 18 months and further appraisal
drilling likely on success. As it can take a number of years to
progress an exploration licence to the point of drilling, the
Farm-Ins materially accelerate the Company's growth compared to an
organic growth strategy and significantly reduces risk for the
Company and its shareholders.
Net mean prospective resources across the licences are estimated
by ERC Equipoise ("ERCE") at 104 MMboe with total P10 upside
potential of 324 MMboe(1) , with the mean volume of each prospect
in excess of the Longboat estimated minimum economic field size.
The Company has created a portfolio with an attractive risk and
reward balance, with the chance of success for each well in the
22-55% range for all-but-one high-impact prospect.
The prospects are gas weighted and are all located in close
proximity to existing infrastructure, with an overlap between
exploration partners and infrastructure owners, providing a
portfolio with a clear low-cost route to monetisation and
low-carbon drilling and development opportunities, well aligned to
Longboat's ESG targets.
Exploration continues to be a key value driver on the NCS, with
Norway enjoying record exploration success of 70% in 2021(2) and
the Norwegian Petroleum Directorate ("NPD") reporting nearly $200
billion of value creation and an average return on exploration of
2.5 times since 2010. The Norwegian tax regime is very supportive,
with a 78% tax rebate for explorers, and the buyer pool for
discoveries in Norway continues to be strong with approximately
$1.4 billion of discovery transactions since 2018 at an average
transaction value exceeding $4/boe.
Longboat is committed to delivering energy responsibly and
strongly supports the energy transition, whilst acknowledging the
place that hydrocarbon exploration and production will continue to
have in the global markets for the foreseeable future. Longboat has
undertaken to be corporate 'Net Zero' on a Scope 1 and 2 basis by
2050, with exploration success being crucial to reducing carbon
intensity in order to maximise the use of existing, mature
infrastructure. The Farm-Ins are well aligned to these principles
given the proximity to infrastructure nature of the licences and
gas weighted resource base and the commitment to decarbonisation on
the NCS evidenced through multiple initiatives including
power-from-shore and carbon storage projects.
The Company believes the Farm-Ins provide an exciting and unique
opportunity to launch Longboat as a North Sea oil and gas company,
with the Farm-Ins providing a material and attractively located
licence package, significant upside potential, an exceptionally
favourable fiscal environment in Norway, and a well-managed and
balanced risk profile.
As a result of the Farm-Ins, the Company has applied for
pre-qualification as a licence holder of oil and gas assets on the
NCS which, assuming approval, would significantly open up the
available opportunities for the business going forwards. The
Company currently expects to have approvals in place before 30
September 2021, but note that this remains subject to completion of
the Farm-Ins and final Norwegian government approvals.
The Norwegian Opportunity
The management team has a long-track record of experience and
success in Norway, providing a natural region of focus for the
Company in leveraging its deep industry relationships to open up a
large number of potential growth opportunities. The region contains
significant "yet-to-find" resources, estimated at 23 billion boe by
the NPD, of which approximately 36% is located in mature areas well
known to Longboat.
Norway is a highly regarded exploration jurisdiction, with
consistent exploration delivery at above-industry rates and
particularly impressive recent performance. The recent average
discovery size was the highest it has been since 2012, with success
rates higher every year since 2011 and overall success rates
averaging 49% between 2014 and 2020.
Norway has an attractive fiscal framework for exploration and
seeks to provide an 'even playing field' for companies without
sufficient revenue to create a tax shield for exploration. Norway
pays 78% of exploration expenditure as a cash tax refund to
explorers in the year following expenditure. Due to the COVID
pandemic this has been enhanced for 2020 and 2021 to allow regular
pay-outs of negative tax instalments.
As a Norwegian government-backed tax receivable, this tax rebate
can be pledged as an asset to secure finance through an EFF,
supporting exploration activities in the region.
The work programmes associated with the Farm-Ins are expected to
be funded through a combination of the proceeds of the Proposed
Financing, an EFF, as well as incremental Norwegian tax refunds and
the Company's existing cash resources.
Norwegian operations offer attractive environmental conditions
compared to many oil and gas operating jurisdictions, with an
existing industry in place providing a significant opportunity for
infrastructure-led exploration and hub strategies to minimise
carbon intensity of operations.
Norway has a public commitment to decarbonisation, including
hydroelectric power-from-shore projects to reduce offshore CO(2)
emissions, the world's first floating wind farm to power offshore
platforms (Tampen Hywind) and Northern Lights, the project
providing open and flexible infrastructure for CO(2) transport and
storage.
Management Track Record
Each of the Directors were previously involved in the management
of Faroe Petroleum, an experienced oil and gas operator of both
production and exploration assets, principally in Norway and the
UK. Under the management of the Directors, Faroe:
-- had a strong track record of delivering value to shareholders, as exemplified by:
- the growth of 2P reserves from 19 MMboe in 2013 to 98 MMboe in
2018, a compounded annual growth rate of approximately 39%;
- the growth of production from 6.1 kboepd in 2013 to 17.8
kboepd in H1 2019, a compounded annual growth rate of approximately
22%(3) ; and
- achieving a sale price of GBP642 million in January 2019, at a
price of 160 pence per share (compared to the share price for the
Company's previous equity raise, in July 2016, of 70 pence per
share), which represented a 129% Total Shareholder Return;
-- had a successful mergers and acquisitions ("M&A")
strategy with a strong track record of value creation through
active portfolio management and M&A, including:
- asset swaps:
-- the Maria asset swap which completed in December 2011,
pursuant to which the company swapped its interest less than 18
months from discovery for a portfolio of producing assets, adding
net production of approximately 7,300 boepd and 14.2 mmboe of 2P
reserves; and
-- the Equinor asset swap contracted in December 2018, pursuant
to which the Company swapped non-producing assets for a portfolio
of producing assets which accelerated growth, rebalanced reserves,
unlocked tax synergies and added GBP96 million of projected cash
flow over two years;
- acquisitions and farm-ins:
-- the NCS portfolio acquisition from DONG Energy in 2016
boosted the production base and created a new strategic hub around
the Ula platform with an 11 month full payback and 90% reserve
increase over three years in the assets; and
-- the Fenja (Pil) farm-in ahead of its discovery announced in
March 2014;
- portfolio management and sell downs, such as the Fenja partial
divestment in 2018, where a 17.5% stake was sold to Suncor for
$54.5 million (including tax), reducing net Group capex by $163
million;
-- had a leading exploration track record with 74 MMboe
discovered between 2013 and 2018 and discovery costs per barrel of
$1.1/boe (post tax), being 20% below the NCS average;
-- consistently drilled four to five exploration wells a year,
with at least one discovery in seven of the eight years prior to
January 2019 and each discovery being among the top five on the NCS
in its respective year; and
-- was in the top quartile of licence recipients in six out of
eight years between 2011-2018 with over 50 licences awarded to
Faroe Petroleum in total.
The Directors have strong industry relationships that have
provided, and are expected to continue to provide, a pipeline of
opportunities for Longboat. The management team are able to utilise
their deep industry network to identify opportunities for bilateral
transactions. The Directors believe that their direct access to
opportunities provides them the ability to execute unique tailored
acquisitions at attractive valuations. Management believes that it
will have a strengthened negotiating position following the
completion of the Farm-Ins, with the Company an established licence
holder qualified on the NCS, and with demonstrated access to
capital.
The Board considers that their reputation, experience, technical
capabilities and track record are valued by authorities and
partners, as demonstrated by their experience at Faroe
Petroleum.
Information on the Target Assets
The assets being acquired by the Company through the Farm-Ins
include 9-25% working interest positions covering seven targets
spread across eight licences located in the NCS. The Company
believes that the three separate transactions, each negotiated on a
bilateral basis provide a tailored portfolio with a balanced
risk/reward profile, and demonstrate management's clear and
deliberate selection criteria.
Summary of the Target Assets in Estimated Drilling Order
Prospect Licence Gross Attributable Geological Pre-tax Expected
interests Prospective Chance of Well Cost Drilling
to be acquired Resources Success(2) Gross/Net Date(3)
(MMboe)(1) ($million)(3)
--------------- ------------------- ----------- ---------------
A 15 % 103 25% $31/5 Q3-21
--------------- --------------- ------------------- ----------- --------------- -----------
B 20 % 41 41% $35/7 Q3-21
--------------- --------------- ------------------- ----------- --------------- -----------
C (main) 9 % 41 27% $25/2 Q3-21
--------------- --------------- ------------------- ----------- --------------- -----------
C (secondary) 9% 27 22% incl above Q3-21
--------------- --------------- ------------------- ----------- --------------- -----------
D 10% 36 55% $31/3 Q4-21
--------------- --------------- ------------------- ----------- --------------- -----------
E 20 % 24 51% $33/7 Q4-21
--------------- --------------- ------------------- ----------- --------------- -----------
F 25 % 159 15% $64/16 Q2-22
--------------- --------------- ------------------- ----------- --------------- -----------
G 10% 254 26% $38/4 Q2/3-22
--------------- --------------- ------------------- ----------- --------------- -----------
Source: ERC Equipoise Competent Persons Report. The geological
chance of success (GCOS) is an estimate of the probability that
drilling the prospect would result in a discovery as defined
under SPE PRMS In the case of Prospective Resources, there is
no certainty that hydrocarbons will be discovered, nor if discovered
will it be commercially viable to produce any portion of the
resources.
Notes :
1 ERC Equipoise estimates, using a conversion factor of 5,600
scf/stb
2 ERC Equipoise estimates
3 Longboat management/operator estimates
The Farm-Ins provide the Company with a hand-picked portfolio
and material drilling programme, including seven attractive
exploration wells over the next 18 months and further appraisal
drilling likely on success. Key selection criteria for the business
in identifying an attractive exploration portfolio for Longboat
include seeking: i) a strong operator; ii) a committed well; iii) a
material working interest for Longboat; iv) additional upside; v)
monetisation potential; vi) to match Longboat's ESG objectives,
and; vii) the vendor retaining a working interest. The Company is
comfortable that the portfolio comfortably meets these objectives
with almost all licences fulfilling all criteria.
The portfolio constructed provides significant catalysts for
growth over the next 18 months and beyond, with seven
near-infrastructure wells planned and significant appraisal
drilling anticipated on success. Six of the seven exploration wells
are committed, with a seventh well expected to be committed in Q3
2021 for drilling in Q2/Q3 2022. The licences have first-class
operators and will see near-continuous drilling over the period,
providing an attractive risk and reward balance across the
programme.
The initial planned wells will test best estimate net
attributable Prospective Resource of 104 MMboe, with an additional
220 MMboe net to the Company in the net attributable high
estimate(1) . All mean volumes for the Target Assets are in excess
of minimum economic field sizes(4) , as calculated by Longboat.
The Company has created a well balanced portfolio of
opportunities, with working interest positions ranging from 9-25%,
prospect risk levels generally considered low to medium (for
exploration), and a diverse range of resource size and upside
potential across the assets. The expected average pre-tax dry hole
cost per well is approximately $6 million and in the case of
success, additional costs would be expected for further formation
evaluation testing in the order of $1-2 million per well with
additional optional geological side tracks or well tests which
could add a further $3-6 million per well.
Details of the Farm-Ins
The Farm-Ins have been negotiated with the three counterparties
each on a bilateral basis, utilising management's deep industry
network and experience to create a unique near-term and low risk
exploration drilling programme on the NCS. In all but one licence,
the vendors are retaining an interest in the prospects,
demonstrating their alignment with the assets' development. The
Farm-Ins are opportunistic and taking advantage of cyclical budget
cuts and capital allocation priorities.
The largest of the three Farm-In transactions is with one of the
most active and successful explorers on the NCS. The licences
acquired in this package include five near term wells with the
sixth well commitment expected to occur in Q3 2021. The vendor will
retain interests in five of the six licences that Longboat is
acquiring stakes in, with the sixth licence being fully divested
due to it not being located in close proximity to the vendor's
owned/operated infrastructure.
The second transaction, with a leading NCS operator, is a single
asset farm-in, for a 20% interest. The vendor will retain a
significant working interest in the asset post-transaction. The
asset is seen as a promising play opener with significant follow-on
potential and a well-regarded operator.
The third transaction is a single licence farm-in to a 10%
interest in a licence, seen as key in an emerging play following
recent nearby discoveries. The licence has a well-regarded operator
and the vendor will retain an interest in the asset
post-transaction.
Footnotes
1. Including operator P10 un-risked estimates of follow on
prospect
2. Year-to-date as announced by NPD based on geological success
rates
3. As reported by DNO in H1 2019 financial results
4. As calculated by Longboat Energy management
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
Helge Hammer, Chief Executive Officer, who is a qualified person
for the purposes of the AIM Guidance Note for Mining, Oil and Gas
Companies. Mr Hammer is a petroleum engineer with more than 30
years' experience in the oil and gas industry. He holds a degree in
Petroleum Engineering from NTH University in Trondheim and an MSc
in Economics from the Institut Français du Pétrole in Paris.
Glossary
"1U" denotes the unrisked low estimate qualifying
as Prospective Resources
"2U" denotes the unrisked best estimate qualifying
as Prospective Resources
"2P Reserves" those additional reserves which analysis
of geoscience and engineering data indicate
are less likely to be recovered than Proved
Reserves but more certain to be recovered
than Possible Reserves. It is equally likely
that actual remaining quantities recovered
will be greater than or less than the sum
of the estimated Proved plus 2P. In this
context, when probabilistic methods are
used, there should be at least a 50% probability
that the actual quantities recovered will
equal or exceed the 2P estimate
"3U" denotes the unrisked high estimate qualifying
as Prospective Resources
"Bcf" billion cubic feet
"boe" barrels of oil equivalent
"boepd" barrels of oil equivalent per day
"CO(2) " carbon dioxide
"ESG" environmental, social, governance
"EFF" exploration finance facility
"GCoS" geological chance of success
"kboepd" thousand barrels of oil equivalent per day
"MMboe" Million barrels of oil equivalent
"Mmstb" million stock tank barrels
"NCS" Norwegian Continental Shelf
"NPD" Norwegian Petroleum Directorate
"P10" the quantity for which there is a 10% probability
that the quantities actually recovered will
equal or exceed the estimate
"PRMS" SPE Petroleum Resources Management System
2018
"Prospective Resources" those quantities of petroleum which are
estimated, on a given date, to be potentially
recoverable from undiscovered accumulations
"Total Shareholder share price return generated at a relevant
Return" measurement date above the starting market
share price, taking into account dividends
paid in the period
Summary Prospective & Contingent Resources Table
Asset Longboat Net Attributable Net Attributable Gas GCOS
Working Prospective Resources Prospective Resources + HC
Interest (HC Liquids) (gas) Liquids
%
---------- ----------------------------- ------------------------------ --------- -----
MMstb Bscf Unrisked
Mean
---------- ----------------------------- ------------------------------ --------- -----
1U 2U 3U Mean 1U 2U 3U Mean MMboe (%)
----------
A 15% 1.1 4.0 12.0 5.6 16.6 43.1 107.5 55.3 15 25%
------------------- ---------- ----- ------ ------ ------ ------ ------ ------
B (gas
cap)** 20% 0.0 0.0 0.0 0.0 4.6 7.4 11.3 7.8 1 41%
------------------- ---------- ----- ------ ------ ------ ------ ------ ------ ------ --------- -----
B (oil
rim) 20% 1.3 4.1 12.6 6.0 0.9 2.8 8.7 4.2 7 41%
------------------- ---------- ----- ------ ------ ------ ------ ------ ------ ------ --------- -----
C (main) 9% 0.1 0.3 1.0 0.5 4.2 12.7 37.0 18.1 4 27%
------------------- ---------- ----- ------ ------ ------ ------ ------ ------ ------ --------- -----
C (secondary) 9% 0.1 0.3 0.5 0.3 4.8 11.4 19.9 12.0 2 22%
------------------- ---------- ----- ------ ------ ------ ------ ------ ------ ------ --------- -----
D 10% 0.6 2.1 7.7 3.5 0.1 0.4 1.3 0.6 4 55%
------------------- ---------- ----- ------ ------ ------ ------ ------ ------ ------ --------- -----
E 20% 1.2 3.3 8.5 4.3 0.7 2.0 5.5 2.7 5 51%
------------------- ---------- ----- ------ ------ ------ ------ ------ ------ ------ --------- -----
F* 25% 2.0 5.8 14.0 7.2 54.2 149.0 351.7 182.5 40 15%
------------------- ---------- ----- ------ ------ ------ ------ ------ ------ ------ --------- -----
G 10% 0.3 0.7 1.5 0.8 49.3 111.1 255.2 137.5 25 26%
------------------- ---------- ----- ------ ------ ------ ------ ------ ------ ------ --------- -----
Total 6.8 20.6 57.8 28.2 135.3 339.8 798.1 420.6 103
------------------- ---------- ----- ------ ------ ------ ------ ------ ------ ------ -----
C (discovery)*** 9% 0.1 0.1 0.2 0.1 3.6 5.0 7.0 5.2 1 100%
------------------- ---------- ----- ------ ------ ------ ------ ------ ------ ------ -----
Total Prospective
& Contingent 6.8 20.7 58.0 28.3 138.9 344.9 805.1 425.8 104
------------------- ---------- ----- ------ ------ ------ ------ ------ ------ ------ -----
Notes
1. Prospective resources assume that for oil targets water
injection is implemented should a discovery be made
2. The geological chance of success (GCOS) is an estimate of the
probability that drilling the prospect would result in a discovery
as defined under SPE PRMS
3. In the case of Prospective Resources, there is no certainty
that hydrocarbons will be discovered, nor if discovered will it be
commercially viable to produce any portion of the resources
4. At Longboat's request mean resource volume are also shown as
barrels of oil equivalent, a boe conversion of 5,600 scf/bbl is
used
5. Totals may not equal the sum of the values due to
rounding
* NGLs are reported for Prospect F only for these estimates a
gas shrinkage of 7% has been applied and a NGL yield of 6.077
bbl/MMscf assumed. NGL volumes are included with condensate in
these tables
** Only the prospective oil rim is likely to be developed, all
gas is likely to be reinjected.
*** On-licence discovery and therefore a Contingent Resource
with a GCOS of 100%
IMPORTANT INFORMATION
This announcement does not constitute, or form part of, any
offer or invitation to sell or issue, or any solicitation of any
offer to purchase or subscribe for any securities in the United
States, Canada, Australia, Japan or the Republic of South Africa or
in any other jurisdiction in which such offer or solicitation is
unlawful, prior to registration, exemption from registration or
qualification under the securities laws of any jurisdiction. The
distribution of this announcement and other information in
connection with the placing and admission in certain jurisdictions
may be restricted by law and persons into whose possession this
announcement, any document or other information referred to herein
comes should inform themselves about and observe any such
restriction. Any failure to comply with these restrictions may
constitute a violation of the securities laws of any such
jurisdiction. Neither this announcement nor any part of it nor the
fact of its distribution shall form the basis of or be relied on in
connection with or act as an inducement to enter into any contract
or commitment whatsoever.
Stifel Nicolaus Europe Limited ("Stifel"), which is authorised
and regulated in the United Kingdom by the Financial Conduct
Authority, is acting exclusively for the Company as Financial
Adviser, Nominated Adviser, Broker and Joint Bookrunner in
connection with the placing and admission, and will not be
responsible to any other person for providing the protections
afforded to customers of Stifel or advising any other person in
connection with the placing and admission. Stifel's
responsibilities as the Company's Nominated Adviser under the AIM
Rules for Companies and the AIM Rules for Nominated Advisers will
be owed solely to the London Stock Exchange and not to the Company,
the directors or to any other person in respect of such person's
decision to subscribe for or acquire ordinary shares. Apart from
the responsibilities and liabilities, if any, which may be imposed
on Stifel by the Financial Services and Markets Act 2000, as
amended or the regulatory regime established under it, Stifel does
not accept any responsibility whatsoever for the contents of this
announcement, and no representation or warranty, express or
implied, is made by Stifel with respect to the accuracy or
completeness of this announcement or any part of it and no
responsibility or liability whatsoever is accepted by Stifel for
the accuracy of any information or opinions contained in this
announcement or for the omission of any material information from
this announcement.
DNB Markets, a part of DNB Bank ASA ("DNB"), which is authorised
and regulated in Norway by the Norwegian FSA is acting as Joint
Bookrunner in connection with the placing and admission, and will
not be responsible to any other person for providing the
protections afforded to customers of DNB or advising any other
person in connection with the placing and admission. Apart from the
responsibilities and liabilities, if any, which may be imposed on
DNB by the Financial Services and Markets Act 2000, as amended or
the regulatory regime established under it, DNB does not accept any
responsibility whatsoever for the contents of this announcement,
and no representation or warranty, express or implied, is made by
DNB with respect to the accuracy or completeness of this
announcement or any part of it and no responsibility or liability
whatsoever is accepted by DNB for the accuracy of any information
or opinions contained in this announcement or for the omission of
any material information from this announcement.
This announcement may include statements that are, or may be
deemed to be, "forward-looking statements". These forward-looking
statements can be identified by the use of forward-looking
terminology, including the terms "believes", "estimates", "plans",
"projects", "anticipates", "expects", "intends", "may", "will", or
"should" or, in each case, their negative or other variations or
comparable terminology. These forward-looking statements include
matters that are not historical facts. They appear in a number of
places throughout this announcement and include statements
regarding the directors' current intentions, beliefs or
expectations concerning, among other things, the Company's results
of operations, financial condition, liquidity, prospects, growth,
strategies and the Company's markets. By their nature,
forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances. Actual results and
developments could differ materially from those expressed or
implied by the forward-looking statements. Forward-looking
statements may and often do differ materially from actual results.
Any forward-looking statements in this announcement are based on
certain factors and assumptions, including the directors' current
view with respect to future events and are subject to risks
relating to future events and other risks, uncertainties and
assumptions relating to the Company's operations, results of
operations, growth strategy and liquidity. Whilst the directors
consider these assumptions to be reasonable based upon information
currently available, they may prove to be incorrect. Save as
required by applicable law or regulation, the Company undertakes no
obligation to release publicly the results of any revisions to any
forward-looking statements in this announcement that may occur due
to any change in the directors' expectations or to reflect events
or circumstances after the date of this announcement.
Neither the content of the Company's website nor any website
accessible by hyperlinks on the Company's website is incorporated
in, or forms part of, this announcement.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
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END
UPDWPUACAUPGPWG
(END) Dow Jones Newswires
June 01, 2021 02:00 ET (06:00 GMT)
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