Longboat Energy PLC Spud of Kveikje Exploration Well (1608E)
March 09 2022 - 2:01AM
UK Regulatory
TIDMLBE
RNS Number : 1608E
Longboat Energy PLC
09 March 2022
9th March 2022
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Spud of Kveikje Exploration Well
Longboat Energy, the emerging full-cycle North Sea E&P
company is pleased to announce the commencement of drilling
operations on the Kveikje exploration well (Company 10%).
Kveikje is the primary prospect in licence PL293B, which lies in
an area north of the giant Troll field in the Norwegian North Sea
with many producing fields and significant infrastructure. The
Kveikje well will be drilled close to recent discoveries, lying c.
8km from the Swisher discovery and c. 10km from the Toppand
discovery. If successful, Kveikje could potentially form part of an
area cluster development.
The prospect is an Eocene Balder Formation injectite with
seismic amplitude support. Injectite reservoirs are typically
characterised by excellent reservoir properties, with recent
exploration successes of this type including the King and Frosk
discoveries in the Balder and Alvheim area respectively. The
exploration well has further potential upside in the underlying
Paleocene Rokke and Late Cretaceous n'Roll secondary prospects.
Kveikje is estimated to contain gross mean prospective resources
of 36 mmboe with further potential upside estimated at 79 mmboe on
a gross basis. The chance of success associated with the Kveikje
prospect is 55% with the key risks being trap presence and seal
integrity.
Rokke and n'Roll have an additional 127 mmboe of gross mean
prospective resource with chances of success in the range of
14%-34% which have not been reviewed by ERCE and are based on
Operator estimates.
The drilling of the Kveikje well 35/10-8S is being undertaken by
the Deepsea Stavanger semi-submersible drilling rig and operated by
Equinor and is expected to take up to four weeks to drill.
A further announcement will be made when drilling operations
have been completed.
Helge Hammer, Chief Executive of Longboat, commented:
"I am pleased that we have now commenced drilling operations for
the fifth exploration well in our drilling programme.
"Longboat Energy's 2022 exploration programme offers
shareholders a unique opportunity to gain exposure to a drilling
portfolio of three wells targeting net mean prospective resource
potential of 69MMboe (1) with an additional 256 MMboe (1) of
upside."
The information contained within this announcement is not
considered to be inside information prior to its release.
Notes :
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 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.
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
"Prospective Resources" those quantities of petroleum which are
estimated, on a given date, to be potentially
recoverable from undiscovered accumulations
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