Longboat Energy PLC Spud of Egyptian Vulture Exploration Well (3779M)
September 21 2021 - 2:00AM
UK Regulatory
TIDMLBE
RNS Number : 3779M
Longboat Energy PLC
21 September 2021
21 September 2021
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Spud of Egyptian Vulture Exploration Well
Longboat Energy, the emerging full-cycle North Sea E&P
company with a portfolio of significant, near-term, low-risk
exploration assets, is pleased to announce the commencement of
drilling operations on the Egyptian Vulture exploration well
(Company 15%).
The drilling of the Egyptian Vulture prospect is being
undertaken by the West Hercules semi-submersible drilling rig. The
Egyptian Vulture well is targeting gross mean prospective resources
of 103 mmboe with further potential upside to bring the total to
208 mmboe on a gross basis. The chance of success associated with
this prospect is 25% with the key risk being related to reservoir
quality and thickness.
The well, operated by Equinor, is expected to take up to seven
weeks to drill with an estimated pre-carry net cost to Longboat of
c.$5 million (c.$1.1 million post tax).
A further announcement will be made when drilling operations
have been completed.
Helge Hammer, Chief Executive of Longboat, commented:
"I am pleased that we have now commenced drilling operations on
our second exploration well in our short term three well programme
following the commencement of the Rødhette well last week. It is no
overstatement to say that the next few weeks will be an extremely
busy and exciting time for Longboat with each of these wells having
the potential to create significant shareholder value.
"The exploration programme over the next 18 months offers
shareholders a unique opportunity to gain exposure to a drilling
portfolio of seven wells targeting net mean prospective resource
potential of 104MMboe (1) with an additional 220 MMboe (1) of
upside which provides the potential to create a Net Asset Value of
over $1 billion based on precedent transactions in the Norwegian
North Sea for development assets."
The information contained within this announcement is not
considered to be inside information prior to its release.
Notes :
1. All resource figures and chance of success estimates are from
the ERC Equipoise Competent Person Report and using a gas-to-barrel
of oil equivalent conversion factor of 5,600 scf/stb
Ends
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 and Broker)
Callum Stewart Tel: +44 20 7710 7600
Jason Grossman
Simon Mensley
Ashton Clanfield
FTI Consulting (PR adviser)
Ben Brewerton Tel: +44 20 3727 1000
Ntobeko Chidavaenzi longboatenergy@fticonsulting.com
Background Longboat Energy was established by the ex-Faroe
Petroleum plc ("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.
The Company has created 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.
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
"mmboe" Million barrels of oil equivalent
"NCS" Norwegian Continental Shelf
"Prospective Resources" those quantities of petroleum which are
estimated, on a given date, to be potentially
recoverable from undiscovered accumulations
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END
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