Longboat JAPEX has announced a farm-down of two exploration targets in Norway to Concedo AS.
The joint venture has farmed down from 30% of its stake in PL1182S, which contains the Lotus / Kjottjake prospect, operated by DNO, in the Northern North Sea.
IT has mean prospective resources of 27 million barrels of oil equivalent, with further potential upside of 44 mmboe.
IF successful, it will likely form a cluster development with the nearby Kveikje discovery through the Troll field.
DNO holds 40% as operator, also partnered with Aker BP (30%).
Elsewhere, Longboat JAPEX has farmed down its 40% stake in licence PL1049, containing the Jasmine and Sjokreps prospects, to 25% in return for Concedo carrying 15% of the company’s 2024 exploration spend.
Sjøkreps has preliminary estimated recoverable volumes ranging between 20 to 300 mmboe(P90-P10) with the main risk being presence and quality of reservoir.
Longboat said Jasmine has recoverable volume range preliminarily estimated between 10 to 30 mmboe (P90-P10).
A potential drilling decision has to be made by February 2025.
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 focussed on delivering on our plans to grow production and reserves in high quality assets in Norway and in SE Asia.”
DNO is operator with 40% and Petoro holds 20% as partner in the licence.
In July, Longboat completed a transaction with Japan Petroleum Exploration Co (“JAPEX”) to form its new joint venture.
Under the deal, JAPEX will make a cash investment of up to US$50 million, of which US$16 million was paid on completion, for a 49.9% shareholding in of Longboat JAPEX Norge AS and provide the Joint Venture with a US$100 million in acquisition financing.
Longboat retains 50.1% ownership in Longboat JAPEX Norge AS.