TIDMLBE
RNS Number : 2284M
Longboat Energy PLC
13 September 2023
13 September 2023
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
SE Asia Acquisition and Expansion
Longboat Energy, an emerging full-cycle E&P company active
in Norway and Malaysia, is pleased to announce the expansion of its
business in SE Asia through the acquisition of privately held Topaz
Number One Limited ("Topaz"), increasing its working interest in
the Production Sharing Contract over Block 2A offshore Sarawak,
Malaysia ("Block 2A") to 52.5%.
Highlights
-- Topaz's sole asset is a 15.75% working interest in Block 2A,
offshore Sarawak Malaysia, containing the giant 'Kertang'
prospect
-- Following completion of the transaction, Longboat will hold
an operated 52.5% interest in Block 2A, simplifying the process
towards a positive well decision and the potential introduction of
an additional funding partner prior to drilling
-- The Topaz team, comprised of James Menzies and Pierre Eliet,
will join Longboat Energy, bringing extensive regional expertise
and an established network, accelerating Longboat's ambitions to
build a full cycle E&P business in SE Asia
-- The transaction consideration closely aligns the Topaz team with value delivery from Block 2A
Helge Hammer, Chief Executive of Longboat Energy, commented:
"We are pleased to have increased our interest in the extensive
and prospective Block 2A in deep water Sarawak, which contains the
giant Kertang prospect. Sarawak has seen significant exploration
success in recent years, and we are excited to play a role in the
quest for additional gas resources in the area.
"We welcome James and Pierre to Longboat. Their extensive
experience and network from SE Asia combined with our in-house
technical expertise, puts us in a strong position to deliver
accelerated growth in the region. In parallel with maturing Block
2A towards the drilling decision, we focus on adding production and
development assets to our portfolio in SE Asia ."
Presentation
Longboat Energy intends to host a presentation via the Investor
Meet Company platform.
The online presentation will take place Friday 15 September
2023, 10.00am BST, and is open to all existing and potential
shareholders. If you wish to attend the online presentation you
should register for the event in advance via this link:
https://www.investormeetcompany.com/longboat-energy-plc/register-investor
Shareholders registered to attend are invited to pre-submit
questions online via the Investor Meet Company dashboard up until
9.00am BST on Friday September 2023 or at any time during the live
presentation. A recording will be made available on the Investor
Meet Company platform after the presentation.
Background
In February 2023, Longboat announced it had been awarded a
36.75% operated interest in a Production Sharing Contract for Block
2A alongside partners Petronas Carigali Sdn. Bhd (40%), Petroleum
Sarawak Exploration & Production Sdn. Bhd. (7.5%) and Topaz
Number One Limited (15.75%).
Block 2A is located offshore Sarawak, north-west of the prolific
Central Luconia hydrocarbon province covering approx. 12,000km(2)
in water depths between 100-1,400 metres. One of the world's
largest LNG facilities, the Bintulu LNG plant, is located onshore
on the coast of Sarawak.
The main prospect on Block 2A is a large anticlinal structure
called Kertang with a closure of over 100km2 at multiple levels and
significant volume potential representing multiple trillions of
cubic feet (TCF) of gas in stacked reservoirs. Seismic indicators
for the presence of gas can be observed in the area and over the
crest of the prospect.
At the same time, the Company indicated its belief that
establishing a presence in the region would open-up further
acquisition opportunities.
Having worked closely with Topaz and its owners over the past
twelve months on Block 2A and other acquisition opportunities,
Longboat has made the decision to accelerate the building of a
full-cycle E&P business in SE Asia through the acquisition of
Topaz, and the addition of James Menzies and Pierre Eliet to the
Company's management team as Executive Chairman SE Asia and
Director SE Asia respectively.
James Menzies has over 30 years of oil & gas industry
experience in a broad range of roles, from technical practitioner
to senior executive. James has served as Chief Executive Officer of
Coro Energy plc (2018-2021) and Executive Chairman at TAP Oil
(2016-2018). James was a Senior Partner at Lambert Energy Advisory
from 2001-2005, prior to founding Salamander Energy plc, a SE
Asian-focussed E&P business where he served as Chief Executive
Officer from 2005-2015. James spent much of his career at LASMO
plc, as a Geophysicist in the UK North Sea, Vietnam and Indonesia,
as well as general management roles in Corporate Strategy, Investor
Relations and Mergers & Acquisitions. He graduated with an MSc
in Geophysics and Planetary Physics from University of Newcastle
Upon Tyne in 1988 and has a BSc (Hons) in Geology from London
University. James is also a Non-Executive Director of Trinity
Exploration & Production plc.
Pierre Eliet has over 25 years of experience working in upstream
organic and inorganic growth projects with extensive experience in
South-East Asia. Pierre, who is resident in Kuala Lumpur, worked
with Lundin Energy and Roc Oil with oversight of subsurface
projects and growth across both Groups' Asian portfolios of assets.
He served as Technical and Business Development Director SE Asia
for Lundin and as GM - Exploration, Geoscience & Business
Development for Roc Oil & Director ROC Oil Malaysia. Pierre
also previously worked at TOTAL and Cairn Energy in the United
Kingdom, India and on new venture projects globally. Over his time
at Cairn Energy Pierre was closely associated with the discovery of
the Cairn Rajasthan fields in India, and specifically the flagship
Mangala field. Pierre holds a BA in Earth Science from Trinity
College in Dublin (1991), a PhD in Geology from Manchester
University (1995) and certified IDP-C, INSEAD's (International
Director's Programme, 2022).
Transaction Detail
Longboat has entered into a sale and purchase agreement to
acquire all of the issued share capital of Topaz Number One Limited
whose sole asset is a 15.75% interest in Block 2A (the
"Acquisition"). As a result, the Company will now control a
combined 52.5% interest in the Block 2A PSC with partners Petronas
Carigali Sdn. Bhd (40%) and Petroleum Sarawak Exploration &
Production Sdn. Bhd. (7.5%).
The consideration for the Acquisition will be satisfied in three
tranches:
-- an initial issue of new ordinary shares of 10 pence each in
the Company ("Ordinary Shares") equivalent to US$100,000; upon
completion of the Acquisition;
-- an contingent amount of US$125,000 payable in cash or through
a further issue of Ordinary Shares of an equivalent value, upon an
exploration well being committed on Block 2A or a farm-out; and
-- a contingent amount of up to US$3,000,000 payable in cash or
through a further issue of Ordinary Shares of an equivalent value,
upon a discovery being made on Block 2A, depending on the resource
size and the growth in the price of the Ordinary Shares measured
over a two year period.
The Company believes that an equity position of this size will
accelerate the drilling of the Kertang prospect by simplifying the
process towards a positive well decision and the potential
introduction of an additional funding partner prior to
drilling.
The Acquisition remains subject to customary regulatory and
partner approvals.
Under the terms of their employment, James Menzies and Pierre
Eliet are incentivised to deliver production acquisitions in SE
Asia within the next two years.
The information contained within this announcement is considered
to be inside information prior to its release.
Ends
Enquiries:
Longboat Energy via FTI
Helge Hammer, Chief Executive Officer
Jon Cooper, Chief Financial Officer
Nick Ingrassia, Corporate Development
Director
Stifel (Nomad and Joint Broker) Tel: +44 20 7710 7600
Callum Stewart
Jason Grossman
Ashton Clanfield
Cavendish Capital Markets Limited (Joint Broker) Tel: +44 20
7397 8900
Neil McDonald
Pete Lynch
Leif Powis
FTI Consulting (PR adviser) Tel: +44 20 3727 1000
Ben Brewerton
Rosie Corbett
Catrin Trudgill longboatenergy@fticonsulting.com
Company 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. Longboat's initial focus has been in Norway where
the Company has drilled eight exploration wells resulting in five
hydrocarbon discoveries, representing a technical 63% success
rate.
In July 2023, Longboat completed a transaction with Japan Petroleum
Exploration Co., Ltd ("JAPEX") to form a new joint venture company
in Norway named Longboat JAPEX Norge AS. Under these arrangements,
JAPEX will make a cash investment of up to US$50 million, of which
US$16 million was paid on completion, for a 49.9% shareholding
in of Longboat JAPEX Norge AS and provide the Joint Venture with
a US$100 million Acquisition Financing Facility to finance acquisitions
and associated development costs. Longboat retains 50.1% ownership
in Longboat JAPEX Norge AS.
Also in July 2023, Longboat JAPEX Norge AS announced its first
production acquisition in Norway of interests in the Statfjord
satellite fields, Statfjord Øst and Sygna .
Longboat entered Malaysia in February 2023 through the award of
a Production Sharing Contract for Block 2A, offshore Sarawak.
Block 2A covers approx. 12,000km(2) 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.
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.
Standard
Estimates of reserves and resources have been prepared in
accordance with the June 2018 Petroleum Resources Management System
("PRMS") as the standard for classification and reporting with an
effective date of 31 December 2020.
Review by Qualified Person
The technical information in this release has been reviewed by
Hilde Salthe, Managing Director Norge, who is a qualified person
for the purposes of the AIM Guidance Note for Mining, Oil and Gas
Companies. Ms Salthe is a petroleum geologist with more than 20
years' experience in the oil and gas industry. Ms Salthe has a
Masters Degree from Faculty of Applied Earth Sciences at the
Norwegian University of Science and Technology in Trondheim.
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END
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