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Longboat Energy PLC announced on 8 August 2023 the commencement of drilling operations on the Velocette (PL1016) exploration well in Norway. The license partnership consists of Longboat JAPEX Norge AS (20%), OMV Norge AS (40% operator), and INPEX Idemitsu Norge AS (40%). The Velocette prospect is estimated to contain gross unrisked mean resources of 177 mmboe (35 mmboe net to Longboat JAPEX Norge AS) with a geological chance of success of 30%.
| Date | 8 Aug 2023 |
| Time | 07:00:06 |
| Category | Corporate updates |
| ID | 5719I |
8 August 2023
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Velocette Well Spud
Longboat Energy, an emerging full-cycle E&P company active in Norway and Malaysia, is pleased to announce the commencement of drilling operations on the Velocette (PL1016) exploration well in Norway (Company 20%).
Velocette is a gas-condensate prospect targeting Cretaceous Nise turbidite sands on the eastern flank of the Utgard High in the Norwegian Sea. The prospect benefits from seismic amplitude anomalies indicative of gas-filled sands and is located within tieback distance from the Equinor operated, producing Aasta Hansteen field (~45 km).
Velocette is estimated to contain gross unrisked mean resources of 177* mmboe (35* mmboe net to Longboat JAPEX Norge AS) with a geological chance of success of 30%*. A number of follow on opportunities exist within license PL1016 with aggregate gross unrisked mean resources of ~200* mmboe, which would be significantly de-risked by success in the Velocette well. The key risks associated with this prospect are reservoir presence and quality.
The license partnership consists of Longboat JAPEX Norge AS (20%), OMV Norge AS (40% operator) and INPEX Idemitsu Norge AS (40%).
Helge Hammer, Chief Executive of Longboat Energy, commented:
"We are excited to have commenced drilling the Velocette prospect which will be our ninth exploration well. Velocette is a gas weighted opportunity targeting very significant prospective resources. The exploration well also has significant follow-on potential that will be derisked in the case of success."
Notes:
*Source: ERCE CPR September 2022, a gas-to-barrel of oil equivalent conversion factor of 5,600 scf/stb
The information contained within this announcement is not considered to be inside information prior to its release.
Ends
Cenkos Securities plc (Joint Broker) Tel: +44 20 7397 8900 Neil McDonald Pete Lynch Leif Powis
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. To date, Longboat's main focus has been in Norway where since June 2021, the Company has entered into a series of transactions to acquire interests in a portfolio of exploration assets close to existing infrastructure. So far, eight of these wells have been drilled resulting in five hydrocarbon discoveries, representing a technical 63% success rate.
In July 2023, Longboat completed the transaction with Japan Petroleum Exploration Co., Ltd ("JAPEX") to form a new joint venture company in Norway named Longboat JAPEX Norge AS. Under these arrangements, JAPEX will make a cash investment of up to US$50 million, of which US$16 million was paid on completion, for a 49.9% shareholding in of Longboat JAPEX Norge AS and provide the Joint Venture with a US$100 million Acquisition Financing Facility to finance acquisitions and associated development costs. Longboat retains 50.1% ownership in Longboat JAPEX Norge AS.
Also in July 2023, Longboat JAPEX Norge AS announced its first production acquisition in Norway of interests in the Statfjord satellite fields, Statfjord Øst and Sygna.
In February 2023, Longboat entered Malaysia through the award of a Production Sharing Contract for Block 2A, offshore Sarawak. Block 2A covers approx. 12,000km2 and is located in water depths of between 100-1,400 metres where a number of large prospects across multiple plays have been identified, with significant volume potential representing 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. |
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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.