Joint Venture with JAPEX – completion update

Longboat Energy PLC
22 June 2023
 

 

 

 

                                                                                   Longboat Energy plc                                              

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

 

Norwegian Joint Venture with JAPEX - completion update

 

London, 22 June 2023 - Longboat Energy, the emerging full-cycle E&P company, is pleased to provide an update on the completion process for the creation of Longboat JAPEX Norge AS ("Longboat JAPEX" or the "Joint Venture").

 

The Norwegian Ministry of Petroleum and Energy has given its approval to the formation of the Joint Venture, which was the key regulatory approval sought, and completion of the transaction is now expected to occur in the first half of July 2023.

 

The information contained within this announcement is not considered to be inside information prior to its release.

 

 

Longboat Energy

via FTI

Helge Hammer, Chief Executive Officer


Jon Cooper, Chief Financial Officer


 

 


Stifel (Nomad)

Tel: +44 20 7710 7600

Callum Stewart

Jason Grossman

Ashton Clanfield




Cenkos Securities plc (Joint Broker)

Tel: +44 20 7397 8900

Neil McDonald                

Pete Lynch         

Leif Powis           

 

 

 


 

FTI Consulting (PR adviser)

Tel: +44 20 3727 1000

Ben Brewerton

Rosie Corbett

Catrin Trudgill

longboatenergy@fticonsulting.com

 

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.

 

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