A NORTH Sea-focused company set up by a team of energy entrepreneurs has hailed the approval of the acquisition of stakes in a series of exploration licences with $1 billion-plus prospects.
The Norwegian Ministry of Petroleum and Energy has approved the acquisitions by Longboat Energy, led by the team behind Faroe Petroleum, which was acquired by DNO for £640 million in 2019.
The drilling of the Egyptian Vulture prospect, scheduled to start later this month, will be the first of an anticipated seven-well exploration programme by Longboat over the next 18 months on the Norwegian Continental Shelf (NCS).
The drilling programme will be targeting net mean prospective resource potential of 104MMboe1 with an additional 220 MMboe1 of upside and follow-on prospectivity. The programme is said to have potential to create a net asset value of over $1bn, based on precedent.
The farm-in deals constitute a reverse takeover transaction under AIM rules and ordinary shares of Longboat will be cancelled from trading on the London Stock Exchange on completion of the arrangement, with readmission expected shortly after that. On completion of the reverse takeover, the company will cease to be an investing company for the purposes of the AIM rules and instead will become an operating company.
Helge Hammer, Longboat chief executive, said: "We are pleased to announce this milestone for Longboat which sees us join a select group of companies holding oil and gas assets on the Norwegian continental shelf and will enable us to complete the farm-in transactions as planned. We are looking forward to spudding the first well in our multi-well programme."
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