Operational Update

Longboat Energy PLC

23 November 2023

 

23 November 2023

Longboat Energy plc

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

Operational Update

Longboat Energy, an emerging full-cycle E&P company active in Norway and Malaysia, is pleased to provide the following operational update.

Statfjord satellites acquisition

Highlights:  

·    The fourth of five new infill wells in Statfjord Øst has now been successfully drilled.

·    Overall, project execution is on track with the Statfjord Øst and Sygna fields expected to be fully on stream from all wells early in the new year.

·    The transaction is progressing towards completion, which is expected in in January.

On 3 July 2023, Longboat announced that it had signed a sale and purchase agreement with INPEX Idemitsu to acquire a 9.60% interest in PL 089, equating to a 4.80% unitised interest in the Statfjord Øst Unit and a 4.32% unitised interest in the Sygna Unit, for cash consideration of US$12.75 million.

Statfjord Øst is located seven kilometres to the northeast of the Statfjord field in a maximum water depth of 190 metres and produces oil and gas from two subsea production templates and one water injection template tied-back to the Statfjord C platform. The Norwegian Ministry of Petroleum and Energy approved a redevelopment plan in 2021 to drill five new production wells into potentially undrained areas of the field while also adding gas-lift to increase production levels.

Initial production for 2023 is estimated to be around 250 boepd net to Longboat JAPEX, which is slightly lower than anticipated mainly due to a delay in bringing the new wells on stream. Production is expected to increase significantly early in 2024 when all wells will be brought on stream. Gas-lift installation is completed.

The Statfjord Øst Unit partners are Equinor Energy AS (43.25%, op), Petoro AS (30.00%), Vår Energi ASA (20.55%), INPEX Idemitsu Norge AS (4.80%) and Wintershall Dea Norge AS (1.40%). The Sygna Unit partners are Equinor Energy AS (43.425%, op), Petoro AS (30.00%), Vår Energi ASA (20.995%), INPEX Idemitsu Norge AS (4.32%) and Wintershall Dea Norge AS (1.26%).

Business Development Update

Longboat remains strategically focused on delivering value-accretive M&A opportunities across both of its key regions of Norway and South East Asia. It  is actively pursuing numerous growth opportunities, which span from near-term, short-cycle developments through to current production - many with a gas-weighting.

Following the acquisition of privately held Topaz Number One Limited and the addition of James Menzies and Pierre Eliet to the Longboat organisation, as announced 13 September, the Company now has a Business Development Team for SE Asia with a proven track record, depth of knowledge and excellent relationships across the region.  

Longboat also remains focused on delivering acquisitions using innovative financing structures, such as it did in the Longboat JAPEX joint venture, which seek to minimize shareholder dilution.

Corporate Presentation

A new corporate presentation can be found on the Company's website (www.longboatenergy.com) setting out the strategic vision for the business as it enters a major growth phase.

Longboat will also be hosting an Investor Meet Company presentation at 10:00 GMT Tuesday 28 November 2023. If you wish to attend the online presentation you should register for the event in advance via this link: https://www.investormeetcompany.com/longboat-energy-plc/register-investor

Attendees registered to attend are invited to pre-submit questions online via the Investor Meet Company dashboard up until 9.00am BST on Tuesday 28 September 2023 or at any time during the live presentation. A recording will be made available on the Investor Meet Company platform after the presentation.

Helge Hammer, Chief Executive of Longboat, commented:

"We completed an outstanding milestone transaction with JAPEX to form our new JV in Norway. The JV in Stavanger is now fully up and running and in prime position to pursue and deliver on our plans to grow production and reserves in high quality assets in Norway.

"The timing of our entry into the SE Asia region has been excellent given the exceptionally active M&A market. We are excited about the many and varied opportunities available to us and with our highly experienced team and excellent relationships. We are confident that we will deliver considerable growth and create substantial shareholder value in the period ahead."

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 eight exploration wells resulting in five hydrocarbon discoveries, representing a technical 63% 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. 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. Longboat entered Malaysia in February 2023 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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