5th Apr 2022 10:29
(Alliance News) - Shares in Longboat Energy PLC rose on Tuesday following a significant oil discovery in the Equinor-operated Kveikje exploration well in licence PL293B, in the Norwegian North Sea.
Shares in the North Sea-focused oil & gas firm were 17% higher at 71.83 pence on Tuesday in London.
The "excellent quality" oil-filled reservoir was encountered in the Kveikje primary Eocene target, alongside a gas layer of similar quality in the overlaying Kveikje Hordaland Eocene injectite.
In addition, secondary targets such as Rokke and N'Roll both encountered indications of sand, with hydrocarbons, however further analysis will be needed to determine its potential.
The preliminary estimate of recoverable resources in Kveikje Main, which is the primary target of the well, stands between 28 and 48 million barrels of oil equivalent.
"Excellent reservoir quality, close proximity to infrastructure and multiple development options make this an important and valuable resource and we look forward to working with the operator to mature the forward plan. We believe that this is an asset that can be commercialised via either development or transaction given the high-value barrels that we have discovered," said Chief Executive Helge Hammer.
By Dayo Laniyan; [email protected]
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