Velocette Minor Gas Discovery

Longboat Energy PLC

20 September 2023

 

20 September 2023

                                                                                   Longboat Energy plc                                              

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

Velocette Minor Gas Discovery

Longboat Energy, an emerging full-cycle E&P company active in Norway and Malaysia, announces a minor discovery at the Velocette (PL1016) exploration well in Norway (Longboat JAPEX Norge AS 20%).

The exploration well 6607/3-1 S encountered hydrocarbons in the primary target in Cretaceous turbidite sands in the Nise formation. The top of the reservoir was reached close to prognosis at a vertical depth of 3348 metres below sea level with 61 meters of high net-to-gross, moderate to very good quality sandstone. Data acquisition indicates a gas column of approximately nine metres in the well.

As the Velocette volumes are at the lower end of pre-drill expectations the discovery is not considered to be commercial in isolation. However, the licence contains numerous other prospects which have been derisked by the presence of gas in good quality reservoir in the Velocette well. The remaining prospectivity has significant size potential in multiple structures and with slightly different trapping geometries. Further assessment of the licence prospectivity together with other opportunities in the area could impact the commercial potential of the licence. High quality data and gas and fluid samples were collected in the exploration well and these will be integrated into the updated prospect evaluations. PL1016 is located within tieback distance from the Equinor operated, producing Aasta Hansteen field (~45 km).

The well will now be plugged and abandoned as planned. The license partnership consists of Longboat JAPEX Norge AS (20%), OMV Norge AS (40% operator) and INPEX Idemitsu Norge AS (40%).

Helge Hammer, Chief Executive of Longboat Energy, commented:

"Although we are disappointed not to have made a commercial discovery in Velocette, the presence of good quality sandstone reservoir, which was the main pre-drill risk, and the presence of gas is encouraging.  There is significant follow-on potential that has been derisked with this result and we will be working with our joint venture partners to mature these opportunities further."

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 technical 67% 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 an initial investment of up to US$20 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.

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

 

END