Longboat Energy PLC Egyptian Vulture Discovery (0289Q)
October 25 2021 - 2:00AM
UK Regulatory
TIDMLBE
RNS Number : 0289Q
Longboat Energy PLC
25 October 2021
25 October 2021
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Egyptian Vulture 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 material discovery at
the Egyptian Vulture exploration well in PL939 (Company 15%), the
second well in its fully-funded, seven well exploration
programme.
The exploration well 6407/1-9 in the Norwegian Sea encountered
light oil in the primary target in the Lower Cretaceous
(Cenomanian) Intra-Lange Formation. The top of the reservoir was
reached close to prognosis at a vertical depth of 3,684 metres
below sea level with 13 metres net sand in a 37 metre oil filled
gross interval. The upper part of the Lange sand interval has a
high net to gross ratio and porosities in the order of 16 percent.
An extensive programme of data acquisition and sampling has been
carried out and the preliminary analysis of the oil sample
indicates a very light oil. The oil-water contact was not
encountered.
The operator's preliminary estimate of recoverable resources in
the Egyptian Vulture discovery is 19 to 63 MMboe (gross) and the
oil-in-place volume has been estimated at 220 to 440 MMboe (gross).
Conservative recovery factors have been applied by the operator in
calculating these preliminary resource estimates and further
appraisal will be required to understand the flow potential of the
reservoir and future development wells. This could significantly
increase the resource estimate for this laterally extensive
discovery measuring approximately 80 km(2) as defined by the
seismic amplitude anomaly.
Egyptian Vulture sits in an area of significant infrastructure
and export opportunities both for oil and gas. The well was drilled
20 km from the Åsgard field and 23 km from the Kristin field, both
of which are also operated by Equinor and which offer development
options for Egyptian Vulture.
The well, operated by Equinor, was drilled ahead of time and
budget, and having reached a total vertical depth of 3,936 metres
will now be plugged and abandoned as planned.
Helge Hammer, Chief Executive of Longboat, commented:
"We are very pleased to have made a material light oil discovery
in our second exploration well, Egyptian Vulture, following the
Rodhette discovery announced only two weeks ago. The large areal
extent and oil-in-place volume range demonstrates the very
significant upside potential of this exciting discovery. We now
look forward to working with the operator to mature the forward
appraisal plan for Egyptian Vulture.
Egyptian Vulture is the second well in our seven well drilling
programme with the third well, the Aker BP operated Mugnetind
exploration well in the Southern North Sea, also well underway. The
fourth well in the programme, Ginny/Hermine, is also anticipated to
spud before year end."
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
" MM boe" Million barrels of oil equivalent
"NCS" Norwegian Continental Shelf
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