Longboat Energy PLC Ginny/Hermine Well Results (3945A)
February 02 2022 - 2:00AM
UK Regulatory
TIDMLBE
RNS Number : 3945A
Longboat Energy PLC
02 February 2022
2 February 2022
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Ginny/Hermine well results
Longboat Energy, the emerging full-cycle North Sea E&P
company, announces that the stacked Ginny/Hermine exploration
prospects in licence PL1060 (Company 9%) failed to encounter
hydrocarbons and will now be plugged and abandoned.
Exploration well 6407/9-13 operated by Equinor Energy AS, was
targeting both the Upper Jurassic Ginny and the Middle Jurassic
Hermine prospects located between the Galtvort discovery and
Hasselmus field development. The well was drilled to a vertical
depth of 2,319 metres below sea level and encountered the target
reservoirs water wet.
The drilling operations were carried out within budget and with
no HSE incidents.
Helge Hammer, Chief Executive of Longboat, commented:
" Although this was the least impactful target in our portfolio,
we are disappointed that the Ginny and Hermine prospects were not
successful, particularly given their location between discoveries
of similar age and structure.
"In the meantime, the Company is looking forward to continuing
the fully funded well programme with the Kveikje well expected to
spud next month, the Cambozola well spudding in the spring and
Copernicus in the summer."
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 four of the seven committed wells in the
programme, discovering hydrocarbons at Rodhette, Egyptian Vulture
and Mugnetind. 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.
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.
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END
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