Longboat Energy PLC Year-end Update (4527J)
December 13 2022 - 2:00AM
UK Regulatory
TIDMLBE
RNS Number : 4527J
Longboat Energy PLC
13 December 2022
13 December 2022
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Year-end Update
Following completion of its 2022 drilling operations, Longboat
Energy, the emerging full-cycle E&P company, is pleased to
provide the following update.
During 2022, Longboat delivered a five well Norwegian
exploration programme in-line with forecast expenditure and
estimates its unaudited, year-end 2022 cash position will be
approximately GBP9 million. Current drawings under the Company's
Exploration Finance Facility ("EFF") are NOK 536 million
(GBP44million) and will be repaid fully from its Norwegian tax
rebate due in November 2023.
Longboat is also pleased to announce it has agreed terms with
its lending banks to increase its EFF to NOK 800 million (GBP65
million) from NOK 600 million and extend the availability period to
the end of 2024 to finance the Company's drilling programme in 2023
and beyond.
Longboat's next exploration well is currently the high-impact,
OMV-operated Velocette prospect (Longboat 20%) due to spud in Q3
2023. Velocette is estimated to contain gross, unrisked mean
resources of 177 mmboe (35 mmboe net) with a geological chance of
success of 30%*.
The Company is focussed on demonstrating and delivering value
from its three key Norwegian discoveries to date (Egyptian Vulture,
Kveikje and Oswig) and expects this will be achieved through a
combination of appraisal and monetisation projects and intends to
provide a further update on its forward activity programme in the
new year.
Longboat is also actively pursuing a range of growth
opportunities both inside Norway and internationally, seeking to
leverage the Company's high-quality organisation into
value-accretive opportunities with the continued goal of creating a
full-cycle E&P company with a balanced portfolio of production
and multiple exploration & appraisal wells per year.
Helge Hammer, Chief Executive of Longboat, commented:
"Longboat is pleased to have completed its 2022 well programme
on schedule and on budget having made two discoveries at Kveikje
and Oswig.
"Kveikje is one of the largest commercial oil discoveries in
Norway during 2022 with excellent reservoir quality, close
proximity to infrastructure and multiple development options and we
are currently reviewing options which include early
monetisation.
"The Oswig gas-condensate discovery has substantial volume
potential including a possible large extension towards the south.
The discovery is located close to the Oseberg field, which is a
major hub in the area and planned for electrification. The
partnership is working to evaluate the discovery and to identify
the optimal future potential development wells."
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 Corbett longboatenergy@fticonsulting.com
(*) Source : All resource figures and chance of success
estimates are from the ERC Equipoise Competent Person Report and
using, where appropriate, 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 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.
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
"scf" Standard cubic feet
"stb" Stock tank barrels
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END
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