Longboat Energy PLC Copernicus Rig Contract (4200W)
December 22 2021 - 2:00AM
UK Regulatory
TIDMLBE
RNS Number : 4200W
Longboat Energy PLC
22 December 2021
22 December 2021
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Copernicus Rig Contract
Longboat Energy, the emerging full-cycle North Sea E&P
company with a portfolio of significant, near-term, low-risk
exploration assets, including three discoveries to date, is pleased
to announce that a rig contract has been signed for the drilling of
the Copernicus exploration well (Company 10%).
Copernicus (PL 1017) will be drilled using the Deepsea Yantai
and is expected to be drilled between June and September 2022. The
prospect lies on the Utgard High in the Vøring Basin region of the
Norwegian Sea and the prospect is a combination trap with mapped
stratigraphic pinch out down-dip and a small structural component
at the apex.
Copernicus is estimated to contain gross mean prospective
resources of 254mmboe with further potential upside to bring the
total to 471mmboe. The chance of success associated with this
prospect is 26% with the key risks being reservoir presence/quality
and trap.
Prior to drilling Copernicus, Longboat expects to drill three
other exploration wells including the Ginny and Hermine exploration
well which is due to spud in the coming weeks. Ginny / Hermine is
the first in a high impact, four-well 2022 drilling programme
targeting 75 mmboe net to Longboat. Copernicus is expected to be
the last of the four wells to be drilled.
Helge Hammer, Chief Executive of Longboat Energy, commented:
"I am pleased that we have now secured a rig for the Copernicus
prospect which will be the seventh well
in our programme. We are entering an active period of drilling
with each of the four 2022 wells having the potential to create
very significant shareholder value."
Notes :
The information contained within this announcement is not
considered to be inside information prior to its release.
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 at the end of 2019 to create a full-cycle
North Sea E&P company through value accretive M&A and
low-risk, near-field exploration. In June 2021 the Company entered
into three bi-lateral transactions to acquire interest in a
portfolio of seven exploration wells over an 18-month period with
further appraisal drilling likely on success. The portfolio has 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 which includes a corporate 'Net Zero' on a
Scope 1 and 2 basis by 2050.
To finance the drilling programme, the Company raised gross
proceeds of GBP35 million by means of a share placing and a NOK 600
million (GBP52 million) Exploration Finance Facility (EFF) with
SpareBank 1 SR-Bank ASA and ING Bank N.V. The Company has to date
completed the drilling of three of the seven committed wells in the
programme (Rodhette, Egyptian Vulture and Mugnetind) discovering
hydrocarbons in each well. The Egyptian Vulture discovery has a
very large area extent, and the oil-in-place volume range offers
very significant upside potential which the Company is seeking to
unlock.
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
master's degree from Faculty of Applied Earth Sciences at the
Norwegian University of Science and Technology in Trondheim.
Glossary
"mmboe" Million barrels of oil equivalent
"Prospective Resources" those quantities of petroleum which are
estimated, on a given date, to be potentially
recoverable from undiscovered accumulations
scf Standard cubic feet
stb Stock tank barrel
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