RE: Lotus and Veloccette2 Jun 2023 11:25
"Longboat was established by Hammer and other members of the former management team of Faroe Petroleum. Prior to his 13 years at Faroe, Hammer worked for Shell and Paladin Resources.
Production growth
Longboat Japex aims to reach its production targets with mergers and acquisitions, field developments, or a combination and plans to drill between one and three exploration or appraisal wells per year.
Previously, Longboat had found it difficult to acquire production in Norway because of the competitive nature of auctions, and also being up against private equity, Hammer says.
Longboat Japex will now have the ability to buy interests in one or more of the numerous projects in Norway that are being developed, and is already looking at one small production acquisition.
“We think those represent the best business development opportunities because you might find that some companies feel they are overexposed in some projects.”
Field developments are also a possibility with the financial support of Japex.
Kveikje, for example, has been incorporated in a large Equinor-led project called Ringvei Vest, which will develop multiple discoveries with combined resources of about 250 million boe and connect them to the Troll field.
Oswig, a high-pressure, high-temperature discovery in the same area as the Equinor-operated Tune and Oseberg fields, has great potential but requires an appraisal well.
Exploration plans
Longboat Japex also has two very attractive exploration targets to drill — Velocette and Lotus — as well as the Oswig appraisal.
The OMV-operated Velocette prospect is one of Norway’s largest exploration wells this year, targeting about 177 million boe on a gross basis, and due to be drilled in the second half of 2023.
“That’s a really key well,” Hammer says.
“It’s one that can change our world a little bit. It’s high impact, has a 30% chance of success, it’s a gas prospect. And it’s sitting just to the east of the Aasta Hansteen field so if we make a discovery we can tie it in.”
The Japex arrangement includes up to $30 million of finance if Velocette is a success.
Lotus is a lower-risk exploration well in the Kveikje area earmarked for drilling next year.
Fixture in Norway
Longboat has become a fixture among Norway’s juniors, a peer group that includes Lotos, Pandion, M Vest, Wellesley, Concedo, Source Energy and Petrolio Noco.
Hammer says there used to be a lot more junior companies.
“It is changing, because if you go back 10 years, the number of E&P companies active in Norway was, I think, above 50. Now it’s more like in the 20s.”
Mergers have created “some very large independent companies — strong, big companies”, he says.
“And there are the smaller ones. But what you don’t have is the midsize independents. So what I’m excited about is that with Japex we can grow into that space. I think Norway needs a company like that.”
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