Rødhette Discovery

Longboat Energy, the emerging full-cycle North Sea E&P company with a portfolio of significant, nearterm, low-risk exploration assets, is pleased to announce a discovery at the Rødhette exploration well (Company 20%), the first well in its fully-funded, seven well exploration programme.

The exploration well 7122/6-3 S encountered a 29-metre hydrocarbon column in the primary target in the Middle Jurassic Stø Formation. The top of the reservoir was reached close to prognosis containing high net-to-gross, moderate to good quality sandstone. Data acquisition indicates a gas column of approximately 18 metres in the well over an oil rim.

Preliminary estimates by the operator place the size of the discovery between 9 and 12 mmboe recoverable (gross). As the Rødhette volumes are at the lower end of pre-drill expectations, both existing discoveries and additional prospectivity in the area will be considered in the evaluation of the commercial development potential of Rødhette through existing regional infrastructure. The well was drilled 30 km north of the Goliat field and 5 km south from the Tornerose discovery.

The well, operated by Vår Energi, was drilled on time and on budget and will now be plugged and abandoned as planned.

Mugnetind Well Spud

Longboat is also pleased to announce the spud of the Mugnetind exploration well (Company 20%) with the Maersk Integrator jack-up rig.

The Mugnetind prospect, operated by AkerBP, is estimated to contain gross mean prospective resources of 24 mmboe with further potential upside estimated at 47 mmboe (gross). The chance of success associated with the Mugnetind prospect is 51% with the key risks being reservoir presence/quality.

The well is expected to take approximately five-to-seven weeks to drill with an estimated net cost to Longboat of c.$7 million (c.$1.5 million post tax).

Helge Hammer, Chief Executive of Longboat, commented:
“We are pleased to have made a hydrocarbon discovery with our first exploration well following our transformative acquisitions made this summer. We look forward to working together with the operator to use the data collected to assess the development potential for Rødhette alongside existing discoveries and further exploration potential in the area.

“We are in a very busy period of drilling with Egyptian Vulture and Mugnetind exploration wells now both underway with the potential to create significant shareholder value.”