TIDMLBE
RNS Number : 2326H
Longboat Energy PLC
05 April 2022
5 April 2022
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Significant Discovery at Kveikje
Longboat Energy, the emerging full-cycle North Sea E&P
company, is pleased to announce a significant discovery in the
Equinor operated Kveikje exploration well (35/10-8S) in licence
PL293B (Company 10%).
The preliminary estimate of recoverable resources in Kveikje
Main, being the primary target of the exploration well, is 28 to 48
MMboe (gross), above the pre-drill expectation.
The discovery has excellent reservoir quality and is close to
existing infrastructure allowing for a simple development through
multiple export options.
Exploration well 35/10-8S, Norwegian North Sea
-- Oil-filled reservoir of excellent quality encountered in the Kveikje primary Eocene target
-- Gas layer of similar excellent reservoir quality encountered
in the overlaying Kveikje Hordaland Eocene injectite
o the top of the Kveikje Main reservoir was reached close to
prognosis at a vertical depth of 1,757 metres below sea level with
18.4 metres of net sand in a 24-metre oil filled gross interval
with porosities in the order of 30 percent
o the top of the Kveikje Hordaland reservoir was reached close
to prognosis at a vertical depth of 1,691 metres below sea level
with 2.7 metres of net sand in a 4-metre gas filled gross interval
with porosities in the order of 31 percent
-- Secondary targets, Rokke and N'Roll both encountered
indications of sand with hydrocarbons with further analysis
required to determine potential
A presentation is being made available on the website:
www.longboatenergy.com
Helge Hammer, Chief Executive of Longboat, commented:
"Longboat is very pleased to have made a significant commercial
discovery in the Kveikje well.
"Excellent reservoir quality, close proximity to infrastructure
and multiple development options make this an important and
valuable resource and we look forward to working with the operator
to mature the forward plan. We believe that this is an asset that
can be commercialised via either development or transaction given
the high value barrels that we have discovered.
"Kveikje is the fifth well and third discovery in our seven well
drilling campaign. The rig will now move to the nearby Cambozola
well where we have a 25% working interest. Cambozola is a play
opener and one of the largest gas prospects to be drilled in Norway
in 2022 and mid-year we expect to spud Copernicus, another a very
large gas prospect."
Detailed Results
Over the Kveikje Main and Hordaland reservoirs, a comprehensive
and successful data acquisition programme was completed, which
comprised Logging While Drilling, Wireline Logging, Fluid Sampling
and Coring, and the data has been used for the preliminary
evaluation of the discovery. Neither the gas-oil contact nor
oil-water contact were penetrated in Kveikje and fluid contacts
have been estimated using pressure data from the well and aquifer
pressure data from nearby wells.
The preliminary estimate of recoverable resources in Kveikje
Main, being the primary target of the exploration well, is 28 to 48
MMboe (gross). Kveikje Main has excellent reservoir properties and
the preliminary on-site analysis of the oil indicates a medium
density oil (30-40 deg API). Gas discovered in the overlying
Kveikje Hordaland is interpreted to be in communication with the
main reservoir and represents upside potential to the Kveikje
development since the gas cap could contribute to a higher recovery
factor through pressure support during the production phase and
subsequently be a target for production.
On the deeper secondary prospects, which did not form part of
the pre-drill estimates, indications of sand with hydrocarbons were
encountered both in the Palaeocene Rokke and in the Cretaceous
N'Roll. Rokke was reached at a vertical depth of 1,877 metres below
sea level and penetrated a c. 3 metres of sand. N'Roll was reached
at a vertical depth of 1,997 metres below sea level and penetrated
multiple sand stringers.
Logging While Drilling and Coring were accomplished over the
deeper secondary targets, but due to operational concerns towards
the end of the drilling operations, the planned Wireline logging
over these sections could not be performed. The evaluation of Rokke
and N'Roll is therefore based on an incomplete data set and further
appraisal will be required to reach a conclusion on the size and
commerciality of these potential additional resources.
The Kveikje discovery is located in a prolific area of
significant infrastructure and export opportunities both for oil
and gas. The well was drilled 40 km from the Troll B field and 32
km from Troll C, which are potential host facilities. The Kveikje
discovery will be evaluated as part of a potential Equinor operated
area development, which could comprise numerous recent discoveries
in the area, including Toppand, Swisher, Røver Nord, Echino South
and Blasto, as well as the undeveloped Grosbeak field.
The Kveikje well, drilled by the Deepsea Stavanger, was spudded
on 8 March 2022, and reached a total vertical depth of 2,078 metres
below sea level. The well is now being plugged and abandoned as
planned.
End
The information contained within this announcement is considered
to be inside information prior to its release.
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
Ntobeko Chidavaenzi Tel: +44 20 3727 1000
Rosie Corbett 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 interests in a
portfolio of seven exploration wells which have resulted in three
discoveries (Egyptian Vulture, Rødhette and Kveikje) out of five
wells drilled to date.
Longboat's remaining two exploration wells, excluding appraisal
drilling on the existing discoveries, are both high-impact,
gas-weighted prospects drilling during 2022. Longboat has targeted
exploration prospects 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 in 2021 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.
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
"Prospective Resources" those quantities of petroleum which are
estimated, on a given date, to be potentially
recoverable from undiscovered accumulations
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END
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