LONDON, UK: Longboat Energy, an emerging full-cycle E&P company with activities in Norway and Malaysia, has announced the acquisition of stakes in two oil and gas fields on the Norwegian Continental Shelf from INPEX Idemitsu.

The deal, which marks Longboat’s entry into production, involves a 4.80% unitised interest in the Statfjord Øst Unit and a 4.32% unitised interest in the Sygna Unit, collectively known as the Statfjord Satellites.

The Statfjord Satellites are located in the northern part of the North Sea, adjacent to the giant Statfjord field, which is operated by Equinor. The fields have been producing since 1994 and 2000, respectively, and are expected to continue until the late 2030s.

Longboat Norge, a subsidiary of Longboat Energy and soon to be a joint venture with Japan Petroleum Exploration Co., Ltd (JAPEX), will pay $12.75 million in cash for the stakes, equivalent to $8.2 per barrel of oil equivalent (boe) of proven and probable (2P) reserves.

The acquisition will add about 300 barrels of oil equivalent per day (boepd) to Longboat Norge’s production, based on figures from the Norwegian Petroleum Directorate to 30 April 2023. The production is expected to approximately double in 2024 following a five well in-fill drilling programme, which is currently underway, and gas-lift installation which is complete.

Longboat Norge expects to recover its investment in under two years from the cash flow generated by the assets.

Helge Hammer, CEO of Longboat Energy, said: “We are delighted to announce our first producing assets on the NCS. The Statfjord Satellites are high-quality fields with long-term cash flow and significant upside potential from the ongoing drilling programme. The acquisition is in-line with our strategy of building a balanced portfolio of exploration, development and production assets that can deliver value for our shareholders.”

The transaction is subject to customary regulatory approvals and is expected to complete in Q3 2023 with an effective date of 1 January 2023.

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