Longboat Energy, an emerging full-cycle E&P company with activities in Norway and Malaysia, has announced the acquisition of a 4.80% unitised interest in the Statfjord Øst Unit and a 4.32% unitised interest in the Sygna Unit (together, the 'Statfjord Satellites') located on the Norwegian Continental Shelf ('NCS'), through its subsidiary Longboat Energy Norge, from INPEX Idemitsu Norge. Longboat Norge will shortly become a joint venture between Longboat Energy and Japan Petroleum Exploration Co., Ltd ('JAPEX') on completion of the investment into Longboat Norge by JAPEX announced on 2 May 2023.
The acquisition represents Longboat's first producing assets.
Transaction highlights:
- Acquisition of long-term cash flow, fields expected to produce until late 2030s
- Production of ~300 boepd net to Longboat Norge (based on NPD figures to 30 April 2023)
- Production anticipated to approximately double in 2024 following a five well in-fill drilling programme, which is currently underway, and gas-lift installation which is complete
- Acquisition price equivalent of US$8.2/2P boe, in-line with recent NCS transactions
- Audited 2P reserves of 1.55 mmboe net to Longboat Norge, of which approximately 77% is oil and NGLs
- Cash consideration of $12.75 million
- Anticipated payback on the transaction in under two years
- Consideration to be fully funded by JAPEX's investment in Longboat Norge
The Company will make a short presentation on this acquisition via the Investor Meet Company platform. The online presentation will take place at 11:00 am on Wednesday, 5 July 2023 and is open to all existing and potential shareholders. Those who wish to attend the online presentation should register in advance via this link: https://www.investormeetcompany.com/longboat-energy-plc/register-investor
A copy of the presentation is available on the Company's website (www.longboatenergy.com).
Helge Hammer, Chief Executive of Longboat, commented:
'We are pleased to announce our first production acquisition in Norway, the next step in realising our growth ambitions on the Norwegian Continental Shelf. The Statfjord Satellites are two high-quality, long-life assets undergoing an exciting and transformative redevelopment led by Equinor.
Longboat's ability to secure this acquisition through a bilateral negotiation continues to demonstrate the Company's deep relationships in Norway and is an important next step in creating a full cycle E&P company.
We would also like to thank our new joint venture partner, JAPEX, with whom we have worked in close cooperation to execute this important transaction. The Statfjord Satellites help position the enlarged business for future success and proves the benefits of joint venture concept.'
Click here for Presentation: Acquisition of initial production assets in Norway (3 July 2023)
Click here for full announcement
Source: Longboat Energy
