RE: Harbour Strategic rationale of Llod24 Dec 2025 20:19
To be fair, the professionals (i.e. Woodmac, welligence, rystad) all valued LLOG >3B.
You should read this carefully to understand the logic:
https://www.harbourenergy.com/media/fozhxkgw/transcript-harbour-energy-management-presentation-22-dec-25.pdf
I quote here from Nigel:
LLOG’s portfolio is dominated by three large, long-life deepwater hubs with high-rate
wells, Who Dat in Mississippi Canyon, and Buckskin and Leon-Castile in Keathley
Canyon. LLOG currently runs one rig across the three hubs, and we plan to continue
this into 2026 with potential for a second rig thereafter. At Who Dat, the focus is on infill
drilling and progressing the development of the 2014 Who Dat East and South
discoveries. We also see upside potential in the deeper reservoirs at Who Dat.
Buckskin is a standout example of the LLOG team's operational excellence and capital
efficiency. Under LLOG's operatorship, the development was delivered with half the
planned wells and a quarter of the budgeted cost. Production performance has also
exceeded expectations. Only two initial wells were required to deliver targeted output
levels. These wells ranked among the top 10 producing wells in the entire Gulf of Mexico
in 2021 and 2022.The team has since brought four wells online with a fifth being
completed as we speak.
And finally, Leon-Castile, which successfully started up just a month or so ago in
October, represents a long term development opportunity with significant drilling
inventory supporting production growth. Development of the fields was unlocked by
redeploying the Salamanca floating production system, the first of its kind in the Gulf,
which opens up the outboard Wilcox play and creates a platform for future high value
tiebacks.
With such a strong portfolio and talented team, there's a great deal to be excited about.
The acquisition will make Harbour the fourth largest resource holder in the basin and
the largest amongst independents. LLOG’s production is expected to double from
34,000 barrels a day by 2028 and deliver a twenty five percent, three year compound
annual growth rate, driven by the ramp up of Leon-Castile and a deep inventory of
drilling opportunities located near to or within the existing hubs.
In addition, we have approximately half a billion barrels equivalent of prospective
resource. The LLOG team bring a proven track record in project execution, deep
expertise in developing the Wilcox play, and one of the strongest exploration track
records in the deepwater Gulf. They have drilled more than 300 wells since 2002 and
are responsible for roughly one in three of all Gulf of America discoveries made since
2014.
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