Longboat Energy PLC Exploration Well Results (5765O)
October 11 2021 - 2:00AM
UK Regulatory
TIDMLBE
RNS Number : 5765O
Longboat Energy PLC
11 October 2021
11 October 2021
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Rødhette Discovery and Spud of Mugnetind Exploration Well
Rødhette Discovery
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 a discovery at the
Rødhette exploration well (Company 20%), the first well in its
fully-funded, seven well exploration programme.
The exploration well 7122/6-3 S encountered a 29-metre
hydrocarbon column in the primary target in the Middle Jurassic Stø
Formation. The top of the reservoir was reached close to prognosis
containing high net-to-gross, moderate to good quality sandstone.
Data acquisition indicates a gas column of approximately 18 metres
in the well over an oil rim.
Preliminary estimates by the operator place the size of the
discovery between 9 and 12 mmboe recoverable (gross). As the
Rødhette volumes are at the lower end of pre-drill expectations,
both existing discoveries and additional prospectivity in the area
will be considered in the evaluation of the commercial development
potential of Rødhette through existing regional infrastructure. The
well was drilled 30 km north of the Goliat field and 5 km south
from the Tornerose discovery.
The well, operated by Vår Energi, was drilled on time and on
budget and will now be plugged and abandoned as planned.
Mugnetind Well Spud
Longboat is also pleased to announce the spud of the Mugnetind
exploration well (Company 20%) with the Maersk Integrator jack-up
rig.
The Mugnetind prospect, operated by AkerBP, is estimated to
contain gross mean prospective resources of 24 mmboe with further
potential upside estimated at 47 mmboe (gross). The chance of
success associated with the Mugnetind prospect is 51% with the key
risks being reservoir presence/quality.
The well is expected to take approximately five-to-seven weeks
to drill with an estimated net cost to Longboat of c.$7 million
(c.$1.5 million post tax).
Helge Hammer, Chief Executive of Longboat, commented:
" We are pleased to have made a hydrocarbon discovery with our
first exploration well following our transformative acquisitions
made this summer. We look forward to working together with the
operator to use the data collected to assess the development
potential for Rødhette alongside existing discoveries and further
exploration potential in the area.
"We are in a very busy period of drilling with Egyptian Vulture
and Mugnetind exploration wells now both underway with the
potential to create significant shareholder value."
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
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.
Glossary
"mmboe" Million barrels of oil equivalent
"NCS" Norwegian Continental Shelf
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