Longboat Energy, an emerging E&P company focused on Southeast Asia, has provided a summary of the Competent Persons Report ('CPR') published today on its website in respect of Block 2A offshore Sarawak in eastern Malaysia.
Block 2A Competent Persons Report
In anticipation of a farm-out process, Longboat commissioned ERC Equipoise Ltd ('ERCE') to undertake a CPR on the main Kertang prospect located in Block 2A (Longboat 52.5%, op), offshore Sarawak in eastern Malaysia.
Kertang is a well-defined, large, four-way dip closed structural high with over 220 km2 of closure. Four target intervals have been evaluated comprising of Cycle I and Cycle II/III, Oligo-Miocene reservoirs, representing the primary targets and shallower Cycle V/VII reservoirs representing the secondary targets. The prospect is covered by high-quality, wide-beam 3D seismic shot by CGG in 2015.
The CPR confirms the giant scale of the Kertang prospect assigning total gross, unrisked mean prospective resources of 9.1 TCF plus 146 mmbbl of NGLs across the four target horizons. A summary of the findings is provided in the table below:
|
Gross Mean Unrisked Prospective Resources (as of March 2024) |
|||
|
|
Gas (bscf) |
NGL (mmbbl) |
CoS% |
|
Cycle I |
4,993 |
77 |
22% |
|
Cycle II/III |
3,435 |
50 |
16% |
|
Cycle V/VII AA1 |
143 |
4 |
24% |
|
Cycle V/VII AA2 |
514 |
14 |
27% |
|
Total |
9,083 |
146 |
|
|
Source: ERCE Competent Persons Report (26 June 2024) |
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The prospect exhibits direct hydrocarbon indicators (DHIs) including an overlying gas cloud feature and amplitude brights at the Cycle V/VII level. Based on the results of seabed core samples taken by PETRONAS MPM in 2019, Kertang is believed to be outside of the CO2 fairway. Preliminary work undertaken by Longboat indicates that all target horizons are capable of being tested by a single exploration well.
A summary of the ERCE Competent Persons Report can be found on the Company's website (https://longboatenergy.com/presentations-reports/) and a full table, which should be read with the accompanying notes, can be found at the end of this press release.
Background
In February 2023, Longboat announced it had been awarded a 36.75% operated interest in a Production Sharing Contract ('PSC') for Block 2A alongside partners Petronas Carigali Sdn. Bhd (40%), Petroleum Sarawak Exploration & Production Sdn. Bhd. (7.5%) and Topaz Number One Limited (15.75%) as part of the Malaysian Bid Round 2022. Subsequently, Longboat purchased Topaz Number One Limited in a transaction announced in September 2023 bringing its total holdings in the block to 52.50%.
Block 2A is located offshore Sarawak, eastern Malaysia in the North Luconia hydrocarbon province covering approximately 12,000 km2 in water depths between 100-1,400 metres. Bintulu LNG, one of the world's largest LNG facilities with capacity of 30 MTPA, is located onshore on the coast of Sarawak.
The PSC is split into two terms; the first term (3-years) entails minimal work commitments focused on subsurface studies with the second term (2-years) requiring the drilling of one firm well to depth > 3,000 metres.
Following recent increased interest levels in exploration for world-scale fields, multiple large companies have approached Longboat regarding Block 2A. Having consulted with PETRONAS, the Company now intends to run a farm-out process during H2-24 to identify a suitable partner.
Nick Ingrassia, CEO of Longboat, commented:
'I am extremely pleased the results of the ERCE CPR confirms Longboat's internal view of the world-class scale of the Kertang prospect. Based on the excellent subsurface work undertaken to date by the Longboat team, we believe that Kertang is one of the largest undrilled structures in Malaysia and look forward to working with our partners PETRONAS and Petros to progress the prospect towards drilling in the next 18 months.'
Source: Longboat Energy
