Longboat Energy PLC (AIM:LBE) Oswig exploration well delivers positive initial results

Longboat Energy, the emerging full-cycle E&P company, is pleased to announce that hydrocarbons have been encountered in the OMV operated exploration well 30/5-4S (Company 20%) and that a decision has been taken to drill a sidetrack well and perform a drill stem test (“DST”).

The well was drilled to a depth of 5,003 metres TVDSS targeting the Tarbert and Ness formations. Extensive coring and logging data have been acquired and the preliminary analysis of the data indicates:

· excellent correlation with the nearby Tune field;

· presence of gas-condensate in the Tarbert formation;

· presence of hydrocarbons in the deeper Ness formation inconclusive at this well location; and

· preliminary gas in-place volumes (GIIP) in the Tarbert formation higher than the overall pre-drill expectations.

Based on the positive indications to-date and challenges collecting a full suite of downhole dynamic data from the existing well-bore, a decision has been taken by the joint venture to drill a sidetrack well and perform a DST. The key objectives of the DST is to establish reservoir productivity, detailed fluid properties and determine the range of recoverable resources.

The further operations are expected to take between six and eight weeks to complete and remain subject to the granting of the associated regulatory approvals. A further announcement will be made at the completion of well operations, including an assessment of the potential range of recoverable resources, once the additional data from the DST has been evaluated and assessed.

Oswig consists of a high pressure, high temperature Jurassic rotated fault block near to the Equinor operated producing Tune and Oseberg fields. Oswig had a pre-drill gross unrisked mean resource of 93 mmboe making it one of the largest gas prospects being tested in Norway this year. Several additional fault blocks have been identified on-block which could contain further gross unrisked mean resources of 80 mmboe which would be significantly derisked by a successful DST. The nearby analogue Tune field has produced circa 140 mmboe since production commenced in 2002.

Partners in licence PL1100 are OMV (Norge) AS (40%, operator), WintershallDEA Norge AS (20%), Source Energy AS (20%) and Longboat Energy Norge AS (20%).

Helge Hammer, Chief Executive of Longboat, commented:

“We are very pleased to have encountered hydrocarbons in the Oswig exploration well, the first of two wells we farmed-into from OMV. We now look forward to working with the operator on the sidetrack and DST and to making the final well result announcement in due course.”

The information contained within this announcement is considered to be inside information prior to its release.

Ends

Enquiries:

Longboat Energy

Helge Hammer, Chief Executive Officer

Jon Cooper, Chief Financial Officer

Nick Ingrassia, Corporate Development Director


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