15th Feb 2023 17:05
(Alliance News) - Longboat Energy PLC on Wednesday said it has been awarded a production sharing contract for a large exploration block in Malaysia by Petroliam Nasional Berhad in the Malaysian bid round 2022 organised by Malaysia Petroleum management.
Longboat is a London-based North Sea-focused exploration and production company.
The company said it had been awarded the contract for Block 2A, offshore of the Sarawak state, which has material gas resource potential. The block covers
Longboat will become the operator of the licence, with a 37% interest in the contract, alongside Petronas Carigali Sdn Bhd with 40%, Petroleum Sarawak Exploration & Production Sdn Bhd with 7.5% and Topaz Number One Limited with 16%.
The company said "a number of large prospects across multiple plays have been identified across Block 2A," adding that it has observed seismic indicators for the presence of gas in the block, this, combined with geochemical analysis on sea floor samples, provides "strong evidence of the area being gas-prone" Longboat said.
The company said its main focus is on the development of its assets in Norway, where it has made four discoveries with commercial potential in the past 18 months.
Chief Executive Officer Helge Hammer said: "Our immediate focus remains on progressing and monetising the exploration successes achieved to date in Norway. We are encouraged by levels of interest in the Kveijke discovery, which has been re-invigorated by the recent award of the adjacent Lotus asset. As well as the high-impact Velocette well scheduled for Q3 this year, we are looking to establish up to a three well programme for 2024."
"We are delighted to have been awarded Block 2A which marks our entry into Malaysia, where our management team and partners have extensive past experience. This potentially significant opportunity has been acquired without a material initial cost obligation and with three years until a drill decision. By establishing a presence in Malaysia and building a relationship with Petronas we are significantly expanding Longboat's opportunity set."
Longboat shares closed up 1.4% at 15.47 pence each on Wednesday in London.
By Harvey Dorset, Alliance News reporter
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