Longboat Energy PLC Completion of Farm-in Agreement (9227Q)
July 01 2022 - 2:00AM
UK Regulatory
TIDMLBE
RNS Number : 9227Q
Longboat Energy PLC
01 July 2022
Friday 1 July 2022
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Completion of Farm-in Agreement
Longboat Energy, the emerging full-cycle North Sea E&P
company, is pleased to announce that the farm-in agreement with OMV
(Norge) AS ("OMV"), announced on 9 May 2022, has now completed.
Through the agreement, Longboat farmed-in to two near-term, gas
weighted exploration prospects on the Norwegian Continental Shelf
("NCS") targeting combined gross unrisked mean prospective
resources of 223 mmboe(1) (45 mmboe(1) net to Longboat).
The first of these wells, Oswig (Company 20%), is expected to
spud in July with Velocette (Company 20%) expected to be drilled in
Q2 2023. In addition, and separate to the OMV farm-in, a further
exploration well, Copernicus (Company 10%), is expected to commence
drilling before the end of this quarter.
Oswig and Velocette are operated by OMV (40% working interest)
and both licences have significant follow-on prospectivity which
would be de-risked by any exploration success. The Oswig well could
significantly derisk further gross unrisked mean resources of 80
mmboe.
Helge Hammer, Chief Executive of Longboat, commented:
"We are pleased to have completed the farm-in agreement with OMV
and look forward to spudding the first of the two additional wells
in July. This will be the first in a series of three fully-funded,
gas-focused exploration wells of which the first two are
anticipated to spud over the next three months.
"Securing these additional wells through a bilateral negotiation
continues to demonstrate Longboat's deep relationships in Norway
."
Ends
The information contained within this announcement is not
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 Tel: +44 20 3727 1000
Rosie Corbett longboatenergy@fticonsulting.com
.
1 source : Operator estimates using, where appropriate using a
gas-to-barrel of oil equivalent conversion factor of 5,600
scf/stb
Background
Longboat Energy was established 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 exploration wells, excluding appraisal
drilling on the existing discoveries, are high-impact, gas-weighted
prospects drilling during 2022 ND h1 2023. 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.
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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END
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