Completion of Statfjord Satellites Acquisition

Longboat Energy PLC

01 February 2024

 

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: [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	[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.

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

 

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