Longboat Energy Farms in two offshore
Longboat Energy, an oil and gas company set up in late 2019 by the former management team of Faroe Petroleum, has operated two short-term gas-weighted exploration projects offshore Norway, through an agreement with the oil company and Australian gas company OMV.
As part of the agreement, Longboat Energy is acquiring a 20% stake in Oswig (PL1100, PL1100B) and Velocette (PL1016), prospects targeting a combined risk-free gross average resource of 2231 mmboe including 451 mmboe net for Longboat.
The company will enter into three offshore licenses containing these prospects in exchange for partial cost-carrying, subject to certain cost caps.
Drilling on the Oswig well is expected to be drilled in the summer of 2022, and drilling of the Oswig well is scheduled for the second quarter of 2023.
The Oswig prospect, whose geological chances of success are estimated at 36%1, is located near existing infrastructure with the potential for connection to the Oseberg and Tune fields in the North Sea.
Velocette is a gas condensate prospect targeting the Cretaceous turbidite sands of Nise on the eastern flank of the Utgard High in the Norwegian Sea, which have been identified following recent seismic reprocessing. Velocette is located within connection distance of the Aasta Hansteen production field operated by Equinor (~45 km).
The operator estimates that Velocette contains average risk-free gross resources of 1301 mmboe (261 mmboe net for Longboat) with a geological chance of success of 35%1.
All licenses are operated by OMV, which will retain a 40% stake after the transaction.
“The licenses have significant follow-up prospectivity that would be reduced by any exploration success,” Longboat Energy said.
The consideration for the acquisition of the stakes includes a pre-tax deferral of approximately NOK 109 million ($12.4 million), NOK 30.7 million ($3.4 million) after tax.
“The associated expenses are expected to be covered by a combination of Longboat’s existing cash resources and drawdowns on its NOK 600 million exploration finance facility. The company is fully funded for its current committed expenses,” Longboat added.
“The transaction is intended to build on Longboat’s recent exploration success at Kveikje, Egyptian vultureand Rodhette by adding two material wells, increasing its average net risk-free resource by 45 mmboe to 110 mmboe on four firm exploration wells drilled over the next 12 months, including the Cambozola well being drilled (Longboat, 25%) . These wells align with Longboat’s ESG strategy of great gas prospects, close to existing infrastructure and with plans for shore-based electrification for one of the potential links,” Longboat Energy said.
Hammer of HelgeManaging Director of Longboat, said: “We are delighted to add two high-quality gas-weighted exploration wells to our prospective program following our recent success at Kveikje and our discoveries at Egyptian Vulture and Rødhette in 2021.
“Securing these additional wells through bilateral negotiation continues to demonstrate Longboat’s close relationship in Norway and gives investors exposure to a significantly increased exploration program targeting an average net risk-free potential resource of $110 million. , an increase of 68%.These significant wells also maintain the company’s focus on material gas opportunities near infrastructure at a time when European energy security remains a government priority.
“With results from Cambozola’s high-impact outlook expected in the coming weeks, we now have a streak of significant potential value catalysts by the middle of next year. We look forward to updating the market. on Cambozola at the end of drilling operations.”