LONDON, UK: Longboat Energy, the emerging full-cycle North Sea E&P company with a portfolio of significant, near-term, low-risk exploration assets, announced the commencement of drilling operations on the Egyptian Vulture exploration well.

The drilling of the Egyptian Vulture prospect is being undertaken by the West Hercules semi-submersible drilling rig. The Egyptian Vulture well is targeting gross mean prospective resources of 103 mmboe with further potential upside to bring the total to 208 mmboe on a gross basis. The chance of success associated with this prospect is 25% with the key risk being related to reservoir quality and thickness.

The well, operated by Equinor, is expected to take up to seven weeks to drill with an estimated pre-carry net cost to Longboat of c.$5 million (c.$1.1 million post tax).

A further announcement will be made when drilling operations have been completed.

Helge Hammer, Chief Executive of Longboat, commented: “I am pleased that we have now commenced drilling operations on our second exploration well in our short term three well programme following the commencement of the Rødhette well last week. It is no overstatement to say that the next few weeks will be an extremely busy and exciting time for Longboat with each of these wells having the potential to create significant shareholder value.

“The exploration programme over the next 18 months offers shareholders a unique opportunity to gain exposure to a drilling portfolio of seven wells targeting net mean prospective resource potential of 104MMboe1 with an additional 220 MMboe of upside which provides the potential to create a Net Asset Value of over $1 billion based on precedent transactions in the Norwegian North Sea for development assets.”

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20 Sep, 4:30 pm GMT+1 ·Disclaimer