Longboat Energy has successfully raised gross proceeds of £35 million by means of a conditional placing and subscription for New Ordinary Shares. The Fundraising was completed at a price of 75 pence per share. The Fundraising represents 467% of the Company's existing ordinary share capital, or 46,666,666 New Ordinary Shares in total (45,213,332 Placing Shares, 1,453,334 Subscription Shares). The Fundraising Price is equal to a 6.8% discount to the closing mid-market price on 31 May 2021.
The Company also announces that it has executed farm-in agreements with Equinor and Spirit Energy Norway with a third transaction anticipated to be executed imminently. As part of the financing of the Transactions, Longboat has also executed a NOK 600 million (£52 million) Exploration Finance Facility (“EFF”) with SpareBank 1 SR-Bank ASA and ING Bank N.V.
Together, the Fundraising and EFF will enable Longboat to pursue a significant, near-term, low-risk exploration drilling programme on the Norwegian Continental Shelf across seven wells targeting net mean prospective resource potential of 104 MMboe and an additional 220 MMboe of upside and follow-on prospectivity. The first well in the programme is expected to spud in Q3 2021.
The Transactions are classified as a reverse takeover pursuant to the AIM Rules for Companies. Completion of the Farm-Ins and Fundraising are subject to approval by Longboat's shareholders at a general meeting to be convened on 28 June 2021.
Helge Hammer, Chief Executive of Longboat, commented:
“The Board of Longboat is delighted by the support we have received from new and existing shareholders. Securing these Farm-Ins will enable us to pursue a significant, near-term, low-risk exploration drilling programme. We can now look forward to a busy period of almost continuous drilling and frequent catalysts during the next 18 months.
“Our ambition remains to build Longboat in to a full-cycle, North Sea E&P company.”
KeyFacts Energy news: Farm-in agreements