Longboat Energy PLC Mugnetind Minor Discovery (6510Q)
October 29 2021 - 2:00AM
UK Regulatory
TIDMLBE
RNS Number : 6510Q
Longboat Energy PLC
29 October 2021
29 October 2021
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Mugnetind minor discovery
Longboat Energy, the emerging full-cycle North Sea E&P
company with a portfolio of significant, near-term, low-risk
exploration assets, announces a minor oil discovery with the
Mugnetind exploration well in licence PL906 (Company 20%) in the
Southern North Sea.
The exploration well 7/11-14 S encountered hydrocarbons in the
Upper Jurassic Ula Formation. The Ula formation was reached at a
vertical depth of 3,985 metres below sea level and consisted of a
28 metre gross section with 14 metres of net sandstone of moderate
to good quality. The reservoir section in Mugnetind is thinner than
predicted as we encountered a thick coal layer immediately under
the reservoir. Mugnetind was drilled on a seismic anomaly, which
predrill had been identified as either hydrocarbon filled reservoir
or coal.
Based on the operator's preliminary estimates the Mugnetind
discovery contain recoverable resources between 5 and 11 MMboe,
which is not considered to be commercial in isolation.
The well, operated by AkerBP, was drilled ahead of time and
below budget and will now be plugged and abandoned as planned.
Helge Hammer, Chief Executive of Longboat, commented:
" While we are disappointed that Mugnetind has come in below
pre-drill expectations, we will continue to review opportunities in
the area and the potential for finding a commercial development
solution. Nevertheless, having discovered hydrocarbons in all of
our first three wells is a fantastic achievement by our technical
team."
"Following our material discovery at Egyptian Vulture earlier
this week, the Company is looking forward to the continuing fully
funded well programme with Ginny/Hermine expected later in 2021 and
the Kveikje and Cambozola wells spudding in the spring of
2022."
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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END
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