TIDMLBE
RNS Number : 1421F
Longboat Energy PLC
03 November 2022
03 November 2022
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Gas condensate discovery at Oswig
Longboat Energy, the emerging full-cycle E&P company, is
pleased to announce a gas condensate discovery in the OMV operated
Oswig exploration well 30/5-4S and sidetrack 30/5-4A (Company
20%).
The Oswig sidetrack (30/5-4A) was drilled to a depth of 4,726
metres TVDSS to conduct a drill stem test ("DST") in the Upper
Tarbert Formation. The average production rate from the DST was
approximately 2.1 mmscfd of gas and 280 bpd of condensate
(approximately 650 boepd in aggregate) through a 10/64-inch
choke.
The DST has successfully proved the ability of Oswig to flow
hydrocarbons from poor quality reservoir and support a potential
development via nearby infrastructure in the Northern North Sea.
The partnership will now work towards integrating the DST results
into its understanding of the field and evaluate possible well
configurations with the objective of maximising flow rates in a
future potential development.
Oswig exploration well highlights
-- Preliminary estimate of recoverable resources in Oswig of
between 10 and 42 million boe (gross) based on in-place volumes of
100 to 215 million boe and a condensate/gas ratio of 110-130
bbl/mmscf.
-- Average production of approximately 650 boepd during the DST
period consisting of 2.1 mmscfd of gas and 280 bpd of
condensate.
-- Successful 'mini-frac' carried out as part of well test
programme to optimise evaluation and design of potential future
production wells.
-- Lean gas condensate with excellent quality gas (0.74 Specific
Gravity and only 5% of non-hydrocarbon components), and a
condensate with 45-47 API gravity.
-- A gross gas/condensate column of about 100 metres encountered
in the Jurassic Tarbert Formation with no gas-water contact
encountered.
-- Significant upside identified in a potential southern
extension to the Oswig discovery not included in the preliminary
resource estimates.
Helge Hammer, Chief Executive of Longboat, commented:
"Longboat is pleased to have made a discovery at the Oswig well,
albeit at the lower end of pre-drill expectations. The thick gas
column is within the Tarbert Formation in a well-defined structure
with excellent quality gas and high condensate content.
"The Oswig fault block drilled has substantial volume potential
and is located close to existing infrastructure. In addition, there
is a possible large extension towards the south in the same fault
block. Longboat looks forward to working with the partnership to
define an appraisal programme and optimal well configuration for
maximising flow rates from future potential development wells."
Detailed Results
The Oswig exploration well 30/5-4 S was drilled to a vertical
depth of 5,003 metres below sea level and was terminated in the
Middle Jurassic Ness Formation.
The sidetrack well 30/5-4 A was drilled to a vertical depth of
4,726 metres below sea level and was terminated in the Middle
Jurassic Tarbert Formation.
The wells are classified as High-Pressure High-Temperature
(HPHT). The well's primary and secondary exploration targets were
to prove hydrocarbon in the middle Jurassic Tarbert and Ness
Formations.
The well encountered a gas/condensate column of about 100 metres
in the Tarbert Formation in a sandstone reservoir with poor
reservoir properties. The gas-water contact was not
encountered.
The objective of sidetrack 30/5-4 A was to conduct a formation
test in the Upper Tarbert Formation. Extensive data and samples
have been collected from the wells, including a successful
formation test in 30/5-4A. The average production rate from the
formation test in the Tarbert Formation was approximately 2.1
mmscfd (60 kSm3d) of gas and 280 bpd (45 Sm3d) of condensate
through a 10/64-inch choke over two flow test periods followed by
24- and 48-hour pressure build-ups. In addition, a 'mini-frac' test
was carried out as part of the test programme to gather important
geomechanical data for optimising evaluation and design of
potential future production wells.
Preliminary estimate of recoverable resources is between 10 and
42 million boe based on in-place volumes of between 100 and 215
mmboe. Based on the preliminary test data collected, the
condensate/gas ratio is 110-130 bbl/mmscf.
Outlook
These are the first and second exploration wells in PL 1100,
which was awarded in APA 2020. A substantial amount of data and
samples have been collected in the main exploration wellbore, the
sidetrack and the DST and the partnership will evaluate the
potential of the discovery in more detail, including the location
of any further appraisal drilling and possible well configurations
(horizontal, multilateral and/or fracked wells) with the objective
of maximising flow rates in any future potential development.
Water depth is 95 metres at the well location. The wells will be
permanently plugged and abandoned.
The wells were drilled by the Nobel (Maersk) Intrepid drilling
rig.
Partners in licence PL1100 are OMV (Norge) AS (40%, operator),
WintershallDEA Norge AS (20%), Source Energy AS (20%) and Longboat
Energy Norge AS (20%).
The information contained within this announcement is considered
to be inside information prior to its release.
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
Rosie Cobbett longboatenergy@fticonsulting.com
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 near-field exploration. Since June 2021, Longboat has
entered a series of four transactions to acquire interests in a
portfolio of nine, gas-weighted exploration wells drilling on the
Norwegian Continental Shelf close to existing infrastructure. To
date, eight of these wells have been drilled resulting in five
hydrocarbon discoveries (Egyptian Vulture, Mugnetind, Rødhette,
Kveikje and Oswig), representing a 63% success rate.
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.
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.
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.
Glossary
bbl Barrel
boe Barresl of oil equivalent
bpd Barrels per day
KSm3d Thousand square metres per day
mmboe Million barrels of oil equivalent
mmscf Million standard cubic feet
mmscfd Million standard cubic feet per day
Sm3d Square metres per day
TVDSS Total vertical depth sub sea
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END
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