TIDMLBE
RNS Number : 5357X
Longboat Energy PLC
21 December 2023
21 December 2023
Longboat Energy plc
("Longboat Energy", "Longboat" or the "Company")
Completion of SE Asia Acquisition
Longboat Energy, an emerging full-cycle E&P company active
in Norway and Malaysia, is pleased to announce the completion of
the acquisition of privately held Topaz Number One Limited
("Topaz"), thereby increasing its working interest in the
Production Sharing Contract over Block 2A offshore Sarawak,
Malaysia ("Block 2A") to 52.5%.
Longboat now holds an operated 52.5% interest in Block 2A,
offshore Sarawak Malaysia, containing the giant 'Kertang' prospect,
simplifying the process towards a positive well decision and the
potential introduction of an additional funding partner prior to
drilling.
Having worked closely with Topaz and its owners over the past
twelve months on Block 2A and other acquisition opportunities,
Longboat 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.
Helge Hammer, Chief Executive of Longboat Energy, commented:
"We are pleased to have completed the corporate acquisition of
Topaz, which increases our interest in a large exploration block in
a region that has seen considerable exploration success recently.
Petronas announced that they have recorded 19 exploration
discoveries, 13 of which were made offshore Sarawak, and two
exploration-appraisal successes, contributing over 1 billion
barrels of oil equivalent to new resources for Malaysia in 2023.
Clearly, we are in the right address.
The Longboat team has extensive experience and network in SE
Asia, which combined with our in-house technical expertise, puts us
in a strong position to deliver accelerated growth in the region
."
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 100km(2) 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.
Transaction Detail
Under the terms of the 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"),
the initial consideration is to be satisfied through an issue of
new ordinary shares of 10 pence each in the Company ("Ordinary
Shares") equivalent to US$100,000 based on the average closing
price of such Ordinary Shares in the preceding ten days,
representing 441,470 Ordinary Shares (the "Consideration
Shares").
There are two further contingent payments to be made: firstly an
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 further 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.
Admission
Application will be made for the Consideration Shares to be
admitted to trading on AIM. It is expected that Admission will
become effective and that dealings in the enlarged share capital,
as described below, will commence at 8.00 a.m. on 29 December
2023.
Following Admission, the Company's enlarged issued ordinary
share capital will consist of 57,108,136 ordinary shares, with the
right to one vote each. The Company will hold no ordinary shares in
treasury. Therefore, the total number of ordinary shares and voting
rights in the Company will be 57,108,136. With effect from
Admission, this figure may be used by shareholders in the Company
as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change to their interest in, the share capital of the Company under
the Financial Conduct Authority's Disclosure Guidance and
Transparency Rules.
PDMR shareholdings
Following Admission, the interests of James Menzies (Chairman SE
Asia) and Pierre Eliet (Director SE Asia) in the issued share
capital of the Company will be as follows:
As at 21 December Immediately following
2023 Admission
Number Percentage Percentage
of Existing of Existing Number of Enlarged
Ordinary Ordinary Number of ordinary Share Capital
Name Shares held Shares held of ConsiderationShares shares held held
James Menzies 101,137 0.18% 220,735 321,872 0.56%
Pierre Eliet - - 220,735 220,735 0.39%
The information contained within this announcement is not
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.
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END
ACQNKKBDBBDBNBB
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