Longboat Energy, the emerging full-cycle E&P company, today provides an update on the completion process for the creation of Longboat JAPEX Norge AS.

The Norwegian Ministry of Petroleum and Energy has given its approval to the formation of the Joint Venture, which was the key regulatory approval sought, and completion of the transaction is now expected to occur in the first half of July 2023.

Background

Longboat Energy was established at the end of 2019 to create a full-cycle E&P company through value accretive M&A and near-field exploration. Since June 2021, Longboat has entered a series of four transactions to acquire interests in a portfolio of nine, gas-weighted exploration wells drilling on the Norwegian Continental Shelf close to existing infrastructure. To date, eight of these wells have been drilled resulting in five hydrocarbon discoveries, representing a technical 63% success rate.

In February 2023, Longboat entered Malaysia through the award of a Production Sharing Contract for Block 2A, offshore Sarawak. Block 2A covers approx. 12,000km2 and is located in water depths of between 100-1,400 metres where a number of large prospects across multiple plays have been identified, with significant volume potential representing multiple trillions of cubic feet of gas.

In May 2023, the Company announced that agreement had been reached with Japan Petroleum Exploration Co., Ltd ("JAPEX") to make a significant investment into its Norwegian subsidiary, Longboat Energy Norge AS ("Longboat Norge"), to form a joint venture.  Under this agreement, JAPEX will make a cash investment of up to US$50 million for 49.9% of Longboat Norge and provide the Joint Venture with a US$100 million Acquisition Financing Facility to finance acquisitions and associated development costs.

Longboat's activities remain focused on creating a portfolio with a clear low-cost route to monetisation and low-carbon drilling and development opportunities, well aligned to Longboat's ESG targets which includes a corporate 'Net Zero' on a Scope 1 and 2 basis by 2050.

KeyFacts Energy: Longboat Norway country profile