Longboat Energy PLC Spud of Ginny & Hermine Exploration Well (2452X)
January 04 2022 - 1:59AM
UK Regulatory
TIDMLBE
RNS Number : 2452X
Longboat Energy PLC
04 January 2022
4(th) January 2022
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Spud of Ginny & Hermine Exploration Well
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 the commencement of drilling operations on the Ginny
and Hermine exploration well (Company 9%) in the Norwegian Sea. The
well spud on 31(st) December. These are the first in a high impact,
four-well 2022 drilling programme targeting 75 million barrels of
oil equivalent ("mmboe") net to Longboat.
The Ginny and Hermine prospects are estimated to contain gross
mean prospective resources of 41mmboe for Ginny and 27mmboe for
Hermine with further potential upside to bring the total to 84mmboe
and 45mmboe, respectively. The geological chance of success
associated with the Ginny prospect is 27% and for Hermine 22% with
the key risks being related to fault seal and fluid phase.
The drilling of the Ginny and Hermine prospects is being
undertaken by the West Hercules drilling rig operated by Equinor.
Well 6407/9-13, in production licence PL1060, is targeting both the
Upper Jurassic Ginny and the Middle Jurassic Hermine prospects. The
stacked reservoirs opportunity is located between the Galtvort
discovery and Hasselmus field development.
The well is expected to take up to five weeks to drill with an
estimated pre-carry net cost to Longboat of c.$2 million (c.$0.45
million post tax).
Equinor Energy AS is the operator with a 31% working interest;
the other licensees are OKEA ASA (40%) and Chrysaor Norge AS
(20%).
An announcement will be made, if applicable, when hydrocarbons
are encountered, and/or on completion of drilling operations.
Helge Hammer, Chief Executive of Longboat Energy, commented:
"I am pleased that we have commenced drilling operations on the
fourth exploration well in our seven well programme. We are in an
active period of drilling with each well having the potential to
create very significant shareholder value.
"A discovery in the Ginny and Hermine prospects could be
developed rapidly through use of the existing infrastructure,
notably through the OKEA operated Draugen platform or the Equinor
operated Njord infrastructure.
"With evaluation underway to quantify the upside resource
potential at the material Egyptian Vulture discovery, Longboat is
now looking forward to drilling Ginny and Hermine as we continue
our fully funded programme with the Kveikje and Cambozola wells
spudding in the spring."
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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END
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