Longboat JAPEX has reduced its stake from 30% to 15% in PL1182S, in exchange for a full carry of the Lotus exploration well, and farmed down its stake in PL1049 from 40% to 25% in exchange for Concedo funding 15% of its 2024 exploration
UK-based oil and gas drilling services provider Longboat Energy has announced the farm-down of its two exploration licences on the Norwegian Continental Shelf (NCS) to Norwegian oil exploration services company Concedo.
Longboat farms down two exploration licences in NCS. (Credit: Maria Lupan on Unsplash)
Longboat Energy, through its Norwegian joint venture Longboat JAPEX Norge, has signed an agreement with Concedo.
Under the terms of the deal, Longboat JAPEX has reduced its stake from 30% to 15% in PL1182S, in exchange for a full carry of the Lotus exploration well, which is anticipated to spud in Q3 2024.
The company also farmed down its stake in PL1049, which contains the Jasmine and Sjøkreps prospects, from 40% to 25%, in exchange for Concedo funding 15% of its 2024 exploration.
Longboat CEO Helge Hammer said: “We are pleased to announce the successful farm down of the two Norwegian exploration licences and the full carry of the Lotus exploration well cost, which is in line with our strategy to retain exposure to high-quality exploration wells but at minimum use of the company’s equity capital, and we remain fully focused on delivering on our plans to grow production and reserves in high-quality assets in Norway and in SE Asia.”
The licence PL1182S is located in the prolific Northern North Sea, 4km southeast of Longboat’s recent significant Kveikje discovery.
Longboat JAPEX owns a 10% equity interest in the licence, alongside DNO Norge with a 40% interest and Aker BP with a 30% interest.
The Lotus prospect, also known as the Kjøttkake prospect, hosts Palaeocene injectite sandstones with excellent reservoir properties and is supported by seismic amplitudes.
Longboat JAPEX leveraged its knowledge of injectite reservoirs, which are also the primary reservoir in the Kveikje discovery, to secure the Lotus prospect in the licencing round, last year.
Based on the internal estimates, Lotus contains gross mean prospective resources of 27mmboe with further potential upside estimated at 44mmboe.
It is planned to be drilled using the semi-submersible Deepsea Yantai, during Q3 2024.
Longboat initially held 25% in PL1049 where the deep Cambozola prospect was drilled last year, and the licence has been split into Sjøkreps and Jasmine prospects.
Sjøkreps is a fault-bounded three-way dip closure at the Palaeocene level with recoverable volumes ranging between 20 and 300mmboe.
Jasmine prospect is an injectite target at the Eocene level, analogous to the Kveikje discovery, with a recoverable volume range preliminarily estimated between 10 and 30mmboe.
