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    Longboat farms into OMV Norwegian prospects

Summary

The deal will mean Longboat participating in a two-well exploration campaign in 2022 and 2023.

by: NGW

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Longboat farms into OMV Norwegian prospects

Longboat announced on May 9 it had farmed into two Norwegian gas prospects operated by Austria's OMV, committing it to take part in a two-well exploration programme in 2022 and 2023.

The Norway-focused junior will acquire 20% interests in licences PL1100 and PL1100B, containing the Oswig gas prospect, and a further 20% stake in licence PL1016, which holds the Velocette prospect, in return for a pre-tax carry of 109mn kroner ($12.4mn).

A well is due to be drilled this summer at Oswig, which consists of a high-pressure, high-temperature Jurassic rotated fault block near the producing Tune and Oseberg fields operated by Equinor in the Norwegian North Sea. The well is targeting the Tarbert and Ness formations, estimated by OMV to hold 93mn barrels of oil equivalent in gross unrisked mean resources.

Work on a well at Velocette will start in the second quarter of 2023, targeting 130mn boe of gross unrisked mean resources.

The drilling campaign could derisk a further 80mn boe of resources at Oswig in the event of a discovery, while at Velocette, a successful well result could derisk some 200mn boe of follow-up opportunities.

Longboat's latest farm-in follows a deal it reached to buy into a seven-well exploration campaign off Norway last year. Three of the five wells drilled so far in that campaign have yielded discoveries. Work on the sixth well began in mid-April.

"Securing these additional wells through a bilateral negotiation continues to demonstrate Longboat's deep relationships in Norway and gives investors exposure to a significant increased exploration programme targeting net mean unrisked prospective resources of 110mn [boe], a 68% increase," Longboat CEO Helge Hammer said, commenting on the latest farm-in. "These important wells also maintain the company's focus on material gas opportunities near to infrastructure at a time when European energy security remains a top governmental priority."