Longboat Energy, a Southeast Asian focused E&P company, has completed the sale of its 50.1% holding in Longboat Japex Norge to its joint venture partner Japan Petroleum Exploration Co. Ltd ('JAPEX').
Longboat has received the full cash consideration of US$2.5 million and JAPEX has now assumed all future financial obligations associated with LJN, including existing debt in LJN.
Proceeds from the Transaction, along with Longboat's existing cash resources and savings from continued cost reduction measures are forecast to provide sufficient capital through the end of Q1-25.
Longboat's near-term focus remains its Malaysian activities. This includes the farm-out of Block 2A, which contains the world-class Kertang prospect, and finalising negotiations with Petronas on a production sharing contract for several material and undeveloped gas fields capable of near-term development.
In the coming months, it is Longboat's intention to rename and rebrand the Company as the final step in repositioning its business for success in Southeast Asia.
James Menzies, Executive Chairman of Longboat commented:
'I would like to thank both our staff and partner, JAPEX, for their tremendous efforts in managing to complete the process of withdrawing from Norway in just under a month from announcement.
Following completion of our transaction with JAPEX, Longboat's streamlined Board and Management team will now direct its full focus on building a business in Southeast Asia. We will take advantage of the exciting opportunity in front of us to grow shareholder value.'
Source: Longboat Energy
