Longboat Energy, the emerging full-cycle E&P company, has announced its unaudited interim results for the period to 30 June 2023.
Helge Hammer, Chief Executive Officer of Longboat Energy, commented:
'Earlier this year, Longboat announced a transaction with Japan Petroleum Exploration Co, Ltd ("JAPEX") to form a joint venture company in Norway which involved JAPEX making a substantial investment in our Norwegian subsidiary and providing a financing facility, thereby significantly strengthening the Company's financial position. The transaction completed in mid-July and the now jointly controlled company was renamed Longboat JAPEX Norge.
Longboat JAPEX will pursue a growth-led strategy on the Norwegian Continental Shelf to create value predominantly through the acquisition of production and development projects and growing 2P reserves to reach a significant production level within three to five years. Furthermore, the joint venture will continue to pursue exploration and appraisal opportunities with the target of drilling one to three wells per year.
In early August the drilling of the OMV operated Velocette well commenced targeting a large gas-condensate prospect on the eastern flank of the Utgard High in the Norwegian Sea. In mid-September we announced a minor gas discovery where the well encountered hydrocarbons in the primary target in Cretaceous turbidite sands in the Nise formation. While the discovery is not considered to be a commercial prospect, the licence contains numerous other prospects which have been de-risked by the presence of gas in good quality reservoir in the Velocette well.
Earlier this month we announced an expansion of our operations in SE Asia through the acquisition of privately held Topaz Number One Limited, thereby increasing our interest in Malaysian 2A PSC to 52.5% which includes the giant Kertang target, with James Menzies and Pierre Eliet also joining the Company to lead our growth in the region.'
Operational Highlights
- Formed a joint venture company in Norway with Japan Petroleum Exploration Co, Ltd ('JAPEX'). JAPEX made a significant investment with an initial $16 million subscription, with a further $4 million contingent payment, and providing a $100 million financing facility
- Entered into an agreement through the new Norwegian joint venture to acquire its first producing assets in Norway
- 4.80% unitised interest in the Statfjord Øst Unit
- 4.32% unitised interest in the Sygna Unit
- This acquisition, when completed, represents long-term cash flow with the fields expected to produce until late 2030s
- Expanded our business in SE Asia with the entrance into Malaysia through the award of a production sharing agreement for Block 2A. Later announced the acquisition of a further interest in Block 2A and the employment of two senior executives, James Menzies and Pierre Eliet
- Announced a small non-commercial discovery in the Velocette well which, through the presence of reservoir and hydrocarbons, has de-risked the other prospects on the licence
- Announced the award in the APA licensing round of a 30% licence interest in a firm well on the Kjøttkake Lotus prospect, building our position in the prolific Kveikje area
Financial Summary
- Longboat Energy plc had gross cash at 30 June 2023 of £2.1 million (30 June 2022: £22.5 million), which excludes cash of £2.2 million in Longboat Energy Norge AS (shown on the balance sheet as "held for sale" pending completion of JAPEX JV (completed post period end, 14 July 2023)
- Longboat Energy Norge AS had exploration financing facility ("EFF") drawings of £33.7 million (30 June 2022: £15.7 million) resulting in a net debt position of £31.5 million. The majority of EFF drawings (£32.0 million) will be repaid from the Norwegian Government's tax rebate of £35.5 million, due in November 2023
- Longboat Energy plc's post-tax loss for the period was £6.2 million (30 June 2022: £1.6 million), total comprehensive loss for the period of £7.9 million (30 June 2022: £1.7 million). Includes write off of Egyptian Vulture of £10.5 million
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Source: Longboat Energy
