Following completion of its 2022 drilling operations, Longboat Energy, the emerging full-cycle E&P company, provides the following update.

During 2022, Longboat delivered a five well Norwegian exploration programme in-line with forecast expenditure and estimates its unaudited, year-end 2022 cash position will be approximately £9 million. Current drawings under the Company’s Exploration Finance Facility (“EFF”) are NOK 536 million (~£44million) and will be repaid fully from its Norwegian tax rebate due in November 2023.

Longboat is also pleased to announce it has agreed terms with its lending banks to increase its EFF to NOK 800 million (~£65 million) from NOK 600 million and extend the availability period to the end of 2024 to finance the Company’s drilling programme in 2023 and beyond.

Longboat’s next exploration well is currently the high-impact, OMV-operated Velocette prospect (Longboat 20%) due to spud in Q3 2023. Velocette is estimated to contain gross, unrisked mean resources of 177 mmboe (35 mmboe net) with a geological chance of success of 30%*.

The Company is focussed on demonstrating and delivering value from its three key Norwegian discoveries to date (Egyptian Vulture, Kveikje and Oswig) and expects this will be achieved through a combination of appraisal and monetisation projects and intends to provide a further update on its forward activity programme in the new year.

Longboat is also actively pursuing a range of growth opportunities both inside Norway and internationally, seeking to leverage the Company’s high-quality organisation into value-accretive opportunities with the continued goal of creating a full-cycle E&P company with a balanced portfolio of production and multiple exploration & appraisal wells per year.

Helge Hammer, Chief Executive of Longboat, commented:
“Longboat is pleased to have completed its 2022 well programme on schedule and on budget having made two discoveries at Kveikje and Oswig.

“Kveikje is one of the largest commercial oil discoveries in Norway during 2022 with excellent reservoir quality, close proximity to infrastructure and multiple development options and we are currently reviewing options which include early monetisation.

“The Oswig gas-condensate discovery has substantial volume potential including a possible large extension towards the south. The discovery is located close to the Oseberg field, which is a major hub in the area and planned for electrification. The partnership is working to evaluate the discovery and to identify the optimal future potential development wells.” 

* All resource figures and chance of success estimates are from the ERC Equipoise Competent Person Report

KeyFacts Energy: Longboat Norway country profile