Longboat Energy, an emerging full-cycle E&P company active in Norway and Malaysia, announces the award of a new licence under the Norwegian 2023 APA Licensing Round (Awards in Predefined Areas) to its Norwegian joint venture, Longboat JAPEX Norge and an update on the completion of the acquisition of the Statfjord Satellites.

Licence 1212 S Block 35/7, 10 - Magnolia

Longboat JAPEX is pleased to announce it has been awarded a 20% interest in Licence PL 1212 S which contains the Magnolia prospect, together with partners Equinor Energy AS (operator) 40% and DNO Norge AS (40%).

Magnolia lies in the prolific Northern North Sea, an area in which Longboat JAPEX has built a significant presence since 2021 pursuing an emerging Paleogene injectite play. The Magnolia area includes the Company's significant Kveikje discovery (Company 10%), the Kjøttkake/Lotus exploration well (Company 15%) which is expected to spud in Q3 2024, and the Jasmine and Sjøkreps prospects (Company 25%) located in PL1049. The Lotus and Jasmine/Sjøkreps prospects were recently subject to a successful farm-down by Longboat JAPEX to Concedo.

The Magnolia prospect comprises Eocene injectite sandstones, analogous to the Kveikje reservoir, characterised by good quality reservoir properties, with seismic amplitude support. The Magnolia award allows Longboat JAPEX to continue to build its presence in this prolific exploration and development area and exploit its deep knowledge of injectite reservoirs gained through the Kveikje discovery.

The Company estimates Magnolia to contain gross mean prospective resources of 39 mmboe* with further potential upside estimated at 57 mmboe*. The chance of success associated with the Magnolia prospect is 34%* with the key risk being hydrocarbon retention and phase.

If successful, Magnolia and Kjøttkake/Lotus are likely to form part of an area cluster development together with several other recent discoveries in the area. The Magnolia licence award further increases the attractiveness of Longboat JAPEX's existing position in the Northern North Sea.

The work programme consists of the acquisition and/or reprocessing of modern 3D seismic and G&G studies within the initial one-year period.

Statfjord satellites acquisition update

The fifth and final of the new infill wells in Statfjord Øst redevelopment has now been successfully drilled and the Statfjord Øst and Sygna fields are expected to start ramping up production during Q1 2024. The transaction is progressing towards completion, which is expected at the end of this month.

Helge Hammer, Chief Executive of Longboat, commented:
"We are pleased to have been awarded this additional licence, which will add to our core area around Kveikje, where Longboat has already discovered significant volumes and will be drilling the carried exploration well on Kjøttkake/Lotus later this year. We look forward to working with our partners to build on the success and add further value in this emerging development area."

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