1
February 2024
Longboat Energy
plc
("Longboat Energy", the
"Company" or "Longboat")
Completion of Statfjord
Satellites Acquisition in Norway
Longboat Energy, an emerging
full-cycle E&P company with activities in Norway and
Malaysia, is pleased to announce the
completion of the acquisition of a 4.80% unitised interest in the
Statfjord Øst Unit and a 4.32% unitised interest in the Sygna Unit
(together, the "Statfjord
Satellites") by its Norwegian joint venture Longboat JAPEX
Norge AS ("Longboat JAPEX"
or the "Joint
Venture").
Production from the Statfjord Satellites averaged net 254
boepd in 2023 and is currently at net 370 boepd
from Statfjord Øst and Sygna. Drilling operations have been
completed and the operator, Equinor, is currently in the process of
commissioning the remaining new wells in Statfjord Øst which are
expected to be brought on stream during the coming
months.
Longboat anticipates a significant
increase in production during the first quarter of 2024 and
production guidance will be provided following the ramp-up of the
new production wells.
The acquisition of the Statfjord
Satellites has been funded by a combination of the investment by
JAPEX into Longboat JAPEX announced last year and a drawing of
approximately US$15 million on the Acquisition Bridge Facility
provided by JAPEX to the Joint Venture. The drawing is greater than
originally forecast due to negative working capital movements
related to delays in bringing new wells on-stream during
2023.
Helge Hammer, Chief Executive of Longboat,
commented:
"We are pleased to have reached
completion of our first production acquisition in Norway. Albeit a
relatively small acquisition, it is an important step and the
Statfjord Satellites are long-life assets and have just undergone a
significant infill drilling and redevelopment project..
"We are now focused on adding
further assets to our portfolio to build a full cycle E&P
company with material production interests. We would like to thank
our new joint venture partner, JAPEX, with whom we have worked in
close cooperation to execute this transaction."
The information contained within
this announcement is considered to be inside information prior to
its release.
|
Enquiries:
|
|
|
Longboat Energy
|
via FTI
|
|
Helge Hammer, Chief Executive
Officer
|
|
|
Jon Cooper, Chief Financial
Officer
Nick Ingrassia, Corporate
Development Director
|
|
|
|
|
|
Stifel (Nomad)
|
Tel: +44 20 7710 7600
|
|
Callum Stewart
Jason Grossman
Ashton Clanfield
|
|
|
|
|
Cavendish Capital Markets Limited (Joint
Broker)
Tel:
+44 20 7397 8900
Neil
McDonald
Pete
Lynch
Leif
Powis
|
Company 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. Longboat's
initial focus has been in Norway where the Company has drilled nine
exploration wells resulting in six hydrocarbon discoveries,
representing a 66% technical success rate.
In July 2023, Longboat
completed a transaction with Japan Petroleum Exploration Co.,
Ltd ("JAPEX") to form a new joint venture company in Norway
named Longboat JAPEX Norge AS in return for
a cash investment of US$20 million and
a US$100 million Acquisition Financing Facility. Longboat
retains 50.1% ownership in Longboat JAPEX Norge
AS.
Longboat JAPEX Norge AS holds
interests in six discoveries on the
Norwegian Continental Shelf and has a 4.80% interest in Statfjord
Øst and 4.32% unitised interest in Sygna producing
fields.
Longboat entered Malaysia
in February 2023 through the award of a Production
Sharing Contract for Block 2A, offshore Sarawak where it holds a
52.5% operated interest. Block 2A covers approx. 12,000km2 and is
located in water depths of between 100-1,400 metres and contains
the giant 'Kertang' prospect which has volume potential of multiple
trillions of cubic feet of gas.
Longboat's activities remain focused
on creating 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 2022.
Review by Qualified Person
The technical information in this
release has been reviewed by Hilde Salthe (Managing Director
Longboat Energy Norge AS), 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.
Glossary
|
"boepd"
|
barrels of oil equivalent per day
|
