TIDMLBE
RNS Number : 3657M
Longboat Energy PLC
11 January 2023
11 January 2023
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
APA Licence Awards and Exploration Finance Facility Signing
Longboat Energy, the emerging full-cycle E&P company, is
pleased to announce the award of new licences under the Norwegian
2022 APA Licensing Round (Awards in Predefined Areas).
Licence 1182 S Block 35/10 - Lotus
Licence 1182 S (Company 30%) lies in the prolific Norwegian
North Sea, 4kms southeast of the Company's recent significant
Kveikje discovery where Longboat is a 10% equity partner.
The Lotus prospect comprises Paleocene injectite sandstones,
characterised by excellent reservoir properties, with seismic
amplitude support . The Lotus award allows Longboat to continue to
build its presence in this prolific exploration and development
area and exploit its deep knowledge of injectite reservoirs gained
through the Kveikje discovery, which has porosities of 30%. Lotus
is directly analogous to Kveikje .
Based on the Company's estimates, Lotus contains gross mean
prospective resources of 27 mmboe* with further potential upside
estimated at 44 mmboe*. The chance of success associated with the
Lotus prospect is 56%* with the key risk being hydrocarbon
retention.
If successful, Lotus is very likely to form part of an area
cluster development together with Kveikje, and potentially several
other recent discoveries in the area, through infrastructure
associated with the nearby giant Troll field. The licence award
will increase the attractiveness of Longboat's existing position in
Kveikje.
The work programme consists of a firm exploration well within
the initial two-year period . The license will be operated by DNO
Norge AS (40%) and the other partner is Aker BP ASA (30%).
PL1100C Oswig South Extension
The PL1100 group has been successfully granted licence PL1100C
(Company 20%) containing Oswig South, a potential southerly
extension of the recent Oswig gas-condensate discovery. The Oswig
South prospect is located at a shallower depth than Oswig, and is
therefore expected to have better reservoir quality.
The Oswig South prospect has been significantly de-risked by the
Oswig discovery and has the potential to double the size of the
existing discovery.
The work programme is one year and consists of technical
studies. The other partners in PL1100C are OMV (Norge) AS (40%,
operator), WintershallDEA Norge AS (20%) and Source Energy AS
(20%).
PL293 CS Kveikje Discovery Extensions
The Kveikje discovery partner group (Company 10%) has
successfully been granted two additional extension areas to the
original licence covering the upside potential of the high-quality
oil discovery announced in April 2022.
Partners in licence PL293 CS are Equinor Energy AS (51%,
operator), DNO Norge AS (29%), INPEX Idemitsu Norge AS (10%) and
Longboat Energy Norge (10%).
Exploration Finance Facility ("EFF")
Longboat is also pleased to confirm it has now executed the
amended facility documentation 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.
Helge Hammer, Chief Executive of Longboat, commented:
"We are pleased to have successfully been offered these
additional, low-risk licences, which could add substantial value to
two of our core areas where Longboat has already discovered
significant volumes during 2022. We look forward to working with
our partners to build on this success and add incremental volumes
in these emerging development areas."
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 : Resource figures and chance of success estimates on
Lotus are from Longboat's APA2022 application.
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
Maps displaying APA2022 offered acreage
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