Member Info for WhirlawStones

The favourable environment for O&G activity in Norway looks set to continue for a long time, with the Norwegian Offshore Directorate even stating “would like to see companies exploring actively in more frontier areas.”

Bit of a contrast with the UK's stance!

https://oilprice.com/Latest-Energy-News/World-News/Norways-Natural-Gas-Production-Hits-Record-High.html

Deeko - yep!

Crucially, Longboat now have the financial backing with JAPEX. And JAPEX have made their intentions clear.

Longboat's original "blue chip" investors turned out to be a disaster, very damaging, destroying the share price when they bailed. Who is to blame for that though? Longboat not bringing them the right deals, or the fickleness of the likes of Blackrock?

It seems Longboat learned from that debacle though, and we all expect much better outcomes with JAPEX.

Is SVAL Energi too big a mouthful for JAPEX, or might they see that as an easy way to quickly reach their targets?

Worth noting that Sval Energi was formed in 2019, the same year as Longboat.

Interesting to compare the progress and achievements of the two companies during that time!

Come on boys, surely just the chunky opportunity you've been looking for, especially now you've got the Japanese Govt. behind you.

Sval producing 70k barrels..

https://www.reuters.com/markets/commodities/private-equity-backed-norwegian-oil-producer-sval-energi-up-sale-source-2024-01-19/

Yes disappointing not to hit the jackpot with Velocette, and the Egyptian vulture writedown, however Carmen extending into the licence area looks like a significant unforseen bonus, and of course Kertang off Sarawak has billion barrel potential.

So with JAPEX's funding for Norwegian development/production acquisitions, as well as the stated intention of production acquisitions in Malaysia, there should be plenty of positive news to look forward to in the months ahead. Note that current Mcap is same as at ipo, when they were just a name and 9 million in the bank.

Deal is to be back-dated to 01.01.2023 so LBE will be earning from the barrels that are now being produced at these fields again.

Good to hear Helge state that they are currently "very busy in the M&A market", and not waiting to first find out the result of the Velocette well.

Hoping to hear news of a sizable production or development deal in the coming weeks.

We could do with an activist investor like Tom Winnifrith here. Anyone remember his recent attack on "Andrew 'Piggy' Austin" after a similar (alleged) act of swine-like self-enrichment?

The game is rigged.

Yet more wholly undeserving snouts in the trough...

Yep - The two OMV-operated wells (Oswig and Velocette) were tagged onto the original six well programme which they raised £35m for at 75p a couple of years ago. It was explained at the time that because the original six well programme came in cheaper than anticipated, they were able to add these two wells on from existing funds.

So this well is not contingent on the JAPEX agreement, it was happening anyway, hence why they made a special agreement for an extra payment from JAPEX if this potentially huge find comes good.

Great to see things finally happening here! So pleased for those who kept the faith when II selling began pummelling us down from the 70 / 80p+ right down here. The tide has finally turned, all the financial uncertainty has been removed, and at last the positive news flow is coming. Japex have puffed the wind into Longboat's sails, they have finally unfurled and we are belatedly gathering some speed.

The recent production acquisition's price demonstrates to me that Longboat's main focus on exploration and development projects for Norway makes sense. It seems likely that acquiring interests in a development project might give best value for money over straight large production acqusitions, given the Norwegian tax system. And with so many development projects recently approved, there should be plenty for Longboat to choose from. And with exploration success they will get very valuable reserves - even those they have made so far at kveikje and oswig should be worth more than current market cap of company.

The possibility of acquiring producing assets in Malaysia for cheaper than can be had in Norway seems like the reason why they have got involved over there. So expl/development acquisitions in Norway, production acquisitions in Malaysia (when funds allow) would seem like the most economical way to create value.

Also worth noting that HH stated recently that the main value driver going forward will be exploration success. That kind of contradicts the general investor sentiment on here who hated the idea of the previous exploration deals and considered that acquiring production would be the easy way to share price increase. That's still debatable, but was a handy stick to beat the BoD with as the share price fell, mainly from II and sneller selling (don't you just hate Blackrock).

We should be a very valuable company in 3 - 4 years time, which is when I could imagine that Helge and the other Faroe founders will be aiming to sell up and sail off into retirement after building up the company.

Yes Helge said they would love to buy shares at these depressed prices, but that they had been (and obviously continue to be) in a closed period for a long time.

That was good to hear, but hardly surprising.

Hard to believe he's being allowed to hoover up so many shares down here, especially with at least one other large holder accumulating, and now we also know that the BoD are itching to average down in size.

Nevertheless, it bodes well for further sp recovery.

There is a new presentation on the Longboat Energy website.

Also, good to see the twitter hype has died down a bit, and some serious, presumably longer terms investors coming on board. Can only assume that the shares they are acquiring and coming from those who either don't have the patience, or the means, to hold for what is now surely a screaming 'buy and hold', for numerous positive reasons.

The Board need the share price to hit two pounds in order to achieve their bonuses and options, as per the Long Term Incentive Plan Award

Biggest risk to this BB was always going to be that good news would attract the trolls...

Finally some genuinely positive news this week. Well done to all the long suffering, longer term shareholders for keeping the faith, we might yet see some decent return on our investments yet!

The news seems really big for Longboat, I'm still trying to digest the implications. To have the backing and financial firepower of the Japanese government behind them is not something we had anticipated, it's such a great vote of confidence and puts Longboat in a strong position. Now they can finally start looking to seal those larger development and production deals that they had originally anticipated when they launched the company.

Norway proving that stable government with stable and realistic oil and gas policies will attract investment (why will nobody from the UK government stand up and make the obvious and compelling argument for such policies in the UK?). It also seems like the Barents Sea is back in play, Norway is really the place to be in Europe for an oil and gas company isn't it.

Lots to look forward to and hope to seeing the share price move back towards more realistic levels in the coming weeks.

It wasn't downplayed when the results came in, they made a video presentation of the results a few days afterwards they were so happy.

Wellesley Petroleum just sold a bunch of exploration successes to Equinor that are in the same development area as Kveikje, so don't buy into this nonsense about it being a 'stranded asset' or anything like that. WorldWidePleb is just trying to get a rise out of you, he doesn't believe any of that claptrap!

And in reply to Mozzabezza.....

you sound like a man whose been adrift on a (long)boat for a number of years. You're incoherent, you're depressed, you've been burnt to a crisp, you no longer have any teeth.
Those producing oil fields you can see on the distant horizon, well they just don't seem to be getting any closer. The boat you are on has been becalmed, drifting aimlessly in the doldrums, you 're just skin and bone by now, you can't remember when you last ate, can't remember when you last cracked a smile.
As the days turn to weeks, and the weeks turn to months, and the months to years, you just don't know whether you have any trust left in your captain, that sprightly man at the helm, that wealthy sailor, that viking leader who took to sea with a band of enthusiasts for one last plunder.
But now you've been drifting aimlessly for over three years, you can't even remember what your children look like. You try hard to think positive thoughts, but it's hard to think of anything anymore, apart the imagined taste of light, sweet crude. When one of your bedraggled shipmates shuffles over to your seat near the bow, in need of some comforting words for what tomorrow might bring, the only croaky words to come out of your toothless mouth are "If you want a picture of the future my good shipmate pauldrayton, imagine a Hammer, smashing into a human face – for ever....."

Well Serica sp went down to 5p didn't it. Crucially, they didn't dilute. And so the sp was eventually able to recover and push on.

So as long as they don't dilute us any further we should be okay long term, after the company has demonstrated its 'full cycle' credentials. Needs to show this can be achieved via the route they decided was most financially prudent, i.e swapping exploration success for production, or buying production through the cash realised through sales exp. succees.
That's one of the reasons I think we should all be pleased they have a foot in the door in Malayisa - it is easier to get acquire producing assets there it seems.
The Analyst note was interesting in that it reiterated the signalling that Norwegian and Malaysian producing assets are on the horizon, in 2023.
We wait with baited breath, whilst averaging down as funds allow.