Completion of farm-down transaction in Norway

Longboat Energy PLC

01 February 2024

 

1 February 2024 

Longboat Energy plc

("Longboat Energy", "Longboat" or the "Company")

Completion of farm-down transaction in Norway

Longboat Energy, an emerging full-cycle E&P company active in Norway and Malaysia, is pleased to announce the completion of the farm-down of two exploration licenses on the Norwegian Continental Shelf ("NCS") by Longboat JAPEX Norge AS ("Longboat JAPEX") as announced on 8 December 2023.

Longboat JAPEX has completed the farm-down transactions of the following interests to Concedo AS:

·    The Company has farmed down its interest in PL1182S from 30% to 15% in return for a full carry of the Kjøttkake/Lotus exploration well, up to an agreed cap above the dry well budget. The well is expected to spud in Q3 2024

·    In PL1049 which contains the Jasmine and Sjøkreps prospects, Longboat JAPEX has farmed down its interest from 40% to 25% in return for Concedo carrying an element of the Company's 2024 exploration expenditure, which mainly consists of seismic costs and studies.

For further information about these transactions and the exploration licenses, see press announcement on 8^th December 2023.

Helge Hammer, Chief Executive of Longboat, commented:

"We are pleased to have completed the farm down of two Norwegian exploration licences and look forward to the drilling of the Lotus exploration well later this year, the cost of which will be fully carried. 

This farm down is in line with our strategy to retain exposure to high quality exploration wells but at minimum use of the Company's equity capital.

We are also pleased to have reached completion of our first production acquisition in Norway, which we also announced today and which is an important first step in building a full cycle E&P company with material production."

The information contained within this announcement is considered to be inside information prior to its release.

Ends

Enquiries: Longboat Energy via FTI Helge Hammer, Chief Executive Officer Jon Cooper, Chief Financial Officer Nick Ingrassia, Corporate Development Director Stifel (Nomad and Joint Broker) Tel: [phone] Callum Stewart Jason Grossman Ashton Clanfield Cavendish Capital Markets Limited (Joint Broker)                        Tel: [phone] Neil McDonald Pete Lynch  Leif Powis FTI Consulting (PR adviser) Tel: [phone] Ben Brewerton Rosie Corbett Catrin Trudgill [e-mail] 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.

Concedo Background

Concedo is a private Norwegian oil company focusing on exploration on the Norwegian Continental Shelf. In June 2023, Concedo announced the acquisition by Attica Exploration AS a newly formed private entity backed by Lundin family members.

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 Master's Degree from Faculty of Applied Earth Sciences at the Norwegian University of Science and Technology in Trondheim.

Glossary

"boe"	barrels of oil equivalent
"NCS"	Norwegian Continental Shelf
"Prospective Resources"	those quantities of petroleum which are estimated, on a given date, to be potentially recoverable from undiscovered accumulations

 

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