Graham Stewart, former Chairman of Faroe Petroleum, is one of the founders of Longboat Energy, a new North Sea oil and gas company who plan to raise £10 million through the admission of shares on London’s Alternative Investment Market (Aim).

Longboat Energy's strategy is to fast track the creation of a new full-cycle North Sea oil and gas company. The strategy to achieve this will initially be through the acquisition of assets where the management team can add value through subsurface and operational improvements, follow-up deal opportunities and near-field exploration; and by value creation through the drill bit.

The Directors believe that there is a unique opportunity at present to build a meaningful North Sea E&P company on a relatively short time scale. Recent dislocation in the oil and gas industry has caused significant exits from the North Sea. The Directors believe that a reduction in competition for the Company's target assets, and anticipated future portfolio streamlining and ongoing exits from incumbent firms presents a timely opportunity for Longboat Energy to acquire assets.

The Directors believe that the team's geological expertise and technical understanding, and deep experience across the E&P life cycle mean Longboat Energy will be able to identify the right assets and to unlock significant value.

Longboat Energy's initial capital raise of up to £10 million will maximise the Company's ability to pursue acquisitions and increase its credibility with asset vendors. Additional capital is expected to be raised at the time of the Company's first acquisition.

Graham Stewart, Chairman of Longboat Energy, said:
"I am excited to announce our intention to float Longboat Energy on AIM. Longboat has been established to capitalise on the current opportunity in the North Sea and continue the strategy we started at Faroe, delivering value to investors through a combination of innovative and selective M&A, driving operational efficiencies into its assets, and continuing our record as world-class explorers.

"Helge, as CEO of Longboat Energy, is positioned to deliver this strategy. Having been COO of Faroe since 2006, he was instrumental in driving the Company's operational performance and leading exploration track record."

Helge Hammer, Chief Executive of Longboat Energy, said:
"Longboat Energy is targeting high quality acquisition opportunities in Norway and the UK with the aim of fast-tracking the development of a new, full-cycle, mid cap E&P.  We will utilise our strong industry relationships and deep asset knowledge to target assets where we can unlock value and look to replicate Faroe's track record of delivering value through exploration. The capital being raised through our IPO will enable Longboat to carry out due diligence on targeted potential deals and fund the business until we make our first acquisition."

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