Longboat Norge will shortly become a joint venture between Longboat Energy and Japan Petroleum Exploration Co., Ltd ("JAPEX") on completion of the investment into Longboat Norge by JAPEX announced on 2 May 2023
Longboat Energy announces acquisition of initial production assets in Norway. (Credit: D Thory from Pixabay)
Longboat Energy, an emerging full-cycle E&P company with activities in Norway and Malaysia, is pleased to announce the acquisition of a 4.80% unitised interest in the Statfjord Øst Unit and a 4.32% unitised interest in the Sygna Unit (together, the “Statfjord Satellites”) located on the Norwegian Continental Shelf (“NCS”), through its subsidiary Longboat Energy Norge AS (“Longboat Norge”), from INPEX Idemitsu Norge AS (“INPEX Idemitsu”). Longboat Norge will shortly become a joint venture between Longboat Energy and Japan Petroleum Exploration Co., Ltd (“JAPEX”) on completion of the investment into Longboat Norge by JAPEX announced on 2 May 2023.
The acquisition represents Longboat’s first producing assets.
Transaction highlights:
· Acquisition of long-term cash flow, fields expected to produce until late 2030s
· Production of ~300 boepd net to Longboat Norge (based on NPD figures to 30 April 2023)
· Production anticipated to approximately double in 2024 following a five well in-fill drilling programme, which is currently underway, and gas-lift installation which is complete
· Acquisition price equivalent of US$8.2/2P boe, in-line with recent NCS transactions
· Audited 2P reserves of 1.55 mmboe net to Longboat Norge, of which approximately 77% is oil and NGLs
· Cash consideration of $12.75 million
· Anticipated payback on the transaction in under two years
· Consideration to be fully funded by JAPEX’s investment in Longboat Norge
Source: Company Press Release