Lotus (Kjøttkake) Rig Assignment

Longboat Energy PLC

30 May 2023

 

30 May 2023

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

Lotus (Kjøttkake) Rig Assignment

Longboat Energy, the emerging full-cycle E&P company, is pleased to announce that a rig has been assigned for the drilling of the Lotus (Kjøttkake) exploration well (Company 30%) in Norway.

The Lotus prospect will be drilled using the semi-submersible Deepsea Yantai and is expected to be drilled during Q3 2024. The license partnership includes DNO Norge AS (40%, op) and Aker BP ASA (30%).

Licence PL1182S lies in the prolific Northern North Sea, 4kms southeast of the Company's recent significant Kveikje discovery where Longboat is a 10% equity partner.

Longboat's Lotus prospect has been named Kjøttkake by the license operator. It comprises Paleocene injectite sandstones, characterised by excellent reservoir properties, and is supported by seismic amplitudes. Longboat exploited its significant knowledge of injectite reservoirs, which are also the main reservoir in the Kveikje discovery, to secure the Lotus prospect through a firm well commitment in last year's APA 2022 licencing round.

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 is 56%* with the key risk being hydrocarbon retention.

If successful, Lotus is likely to form part of an area cluster development together with Kveikje and several other recent discoveries in the area, through infrastructure associated with the nearby giant Troll field.

Helge Hammer, Chief Executive of Longboat Energy, commented:

"I am pleased that we have secured a rig for drilling Lotus, which could add substantial reserves to our Kveikje development if successful.   

The next well on the programme will be Velocette, which is expected to spud late this summer, and which will be followed by Lotus next year."

Notes:

The information contained within this announcement is not 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 Officer Stifel Nicolaus Europe Limited (Nominated Adviser and Joint Broker) Callum Stewart Tel: [phone] Jason Grossman Simon Mensley Ashton Clanfield Cenkos Securities plc (Joint Broker) Neil McDonald                 Tel: [phone] Pete Lynch Leif Powis FTI Consulting (PR adviser) Ben Brewerton Tel: [phone] Rosie Corbett [e-mail]

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, representing a technical 63% success rate.

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.

In May 2023, the Company announced that agreement had been reached with Japan Petroleum Exploration Co., Ltd ("JAPEX") to make a significant investment into its Norwegian subsidiary, Longboat Energy Norge AS ("Longboat Norge"), to form a joint venture.  Under this agreement, JAPEX will make a cash investment of up to US$50 million for 49.9% of Longboat Norge and provide the Joint Venture with a US$100 million Acquisition Financing Facility to finance acquisitions and associated development costs.

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 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

"2P Reserves"	The sum of proved and probable reserves.  Denotes the best estimate scenario of reserves
"boe"	Barrels of oil equivalent
"boepd"	Barrels of oil equivalent per day
"mmboe"	Million barrels of oil equivalent

 

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