Norway

The Rødhette Discovery in licence PL901 in the Barents Sea with exploration well 7122/6-3 S was announced in October 2021. The well encountered hydrocarbons in the primary target in the Middle Jurassic Stø Formation. The top of the reservoir was reached close to prognosis at a vertical depth of 1,847 meters below sea level with 29 meters of high net-to-gross, moderate to good quality sandstone. Data acquired indicated a gas column of approximately 18 meters in the well over an oil rim with a likely oil-water contact at 1,876 meters true vertical depth.

Press released preliminary estimates by the operator (Vår) placed the size of the discovery between 9 and 12 mmboe recoverable (gross). The Rødhette volumes were at the lower end of pre-drill expectations and assessment of both existing discoveries and additional prospectivity in the area is needed to understand the commercial development potential. The well was drilled 30 km north of the Goliat field and 5 km south from the Tornerose discovery. The recent large Lupa gas discovery announced by Vår on the 23rd December 2022 could have positive impact on Rødhette and a future gas export route in the area.

A new play has been proven in the Tæna Basin/east flank of Utgard High in the Norwegian Sea by the Velocette Discovery in licence PL1016. The exploration well 6607/3-1S encountered a Cretaceous turbidite gas filled sandstone in the Nise Formation. The Nise Formation was the primary target and the top of the reservoir was reached close to prognosis at a vertical depth of 3348 metres below sea level with 61 meters of high net-to-gross, moderate to very good quality sandstone. Data acquisition indicates a gas column of approximately nine metres in the well.

Press released preliminary estimates by the operator (OMV) placed the size of the discovery between 1.3 and 11.3 million boe (gross) of recoverable oil equivalents. As the Velocette volumes are at the lower end of pre-drill expectations the discovery is not considered to be commercial in isolation. However, the licence contains numerous other prospects which have been derisked by the presence of gas in good quality reservoir in the Velocette well. The remaining prospectivity has significant size potential in multiple structures with slightly different trapping geometries. Further assessment of the licence prospectivity together with other opportunities in the area could impact the commercial potential of the licence. High quality data and samples were collected in the exploration well and these will be integrated into the updated prospect evaluations. PL1016 is located within tieback distance from the Equinor operated, producing Aasta Hansteen field (~45 km).

Magnolia lies in the prolific Northern North Sea, an area in which Longboat JAPEX has built a significant presence since 2021 pursuing an emerging Paleogene injectite play. The Magnolia area includes the Longboat JAPEX’s significant Kveikje discovery (Longboat JAPEX 10%), the Kjøttkake/Lotus exploration well (Longboat JAPEX 15%) which is expected to spud in Q3 2024, and the Jasmine and Sjøkreps prospects (Longboat JAPEX 25%) located in PL1049. The Lotus and Jasmine/Sjøkreps prospects were recently subject to a successful farm-down by Longboat JAPEX to Concedo.

The Magnolia prospect comprises Eocene injectite sandstones, analogous to the Kveikje reservoir, characterised by good quality reservoir properties, with seismic amplitude support. The Magnolia award allows Longboat JAPEX to continue to build its presence in this prolific exploration and development area and exploit its deep knowledge of injectite reservoirs gained through the Kveikje discovery.

The Longboat JAPEX estimates Magnolia to contain gross mean prospective resources of 39 mmboe with further potential upside estimated at 57 mmboe. The chance of success associated with the Magnolia prospect is 34% with the key risk being hydrocarbon retention and phase.

If successful, Magnolia and Kjøttkake/Lotus are likely to form part of an area cluster development together with several other recent discoveries in the area. The Magnolia licence award further increases the attractiveness of Longboat JAPEX’s existing position in the Northern North Sea.

The work programme consists of the acquisition and/or reprocessing of modern 3D seismic and G&G studies within the initial one-year period.

The Kveikje discovery is located in licence PL293 B on the Lomre Terrace in the Norwegian North Sea. The exploration well was drilled in March 2022 and 2C to 3C contingent recoverable resources, estimated by ERCE in a Competent Persons Report, are 35 to 60 mmboe gross.

The discovery well found an oil-filled reservoir of excellent quality in Kveikje Main, the primary Eocene target. A gas layer of similar excellent reservoir quality was encountered in the overlaying Kveikje Hordaland Eocene injectite. The top of the Kveikje Main reservoir was reached close to prognosis at a vertical depth of 1,757 metres below sea level with 18.4 metres of net sand in a 24- metre oil filled gross interval with porosities in the order of 30 percent. Top Kveikje Hordaland reservoir was also reached close to prognosis at a vertical depth of 1,691 metres below sea level with 2.7 metres of net sand in a 4-metre gas filled gross interval with porosities in the order of 31 percent.

The secondary targets, Rokke and N’Roll both encountered indications of sand with hydrocarbons with further analysis required to determine potential.

The PL293 group was subsequently granted licence PL293CS (Longboat JAPEX 10%) in the APA 2022 licensing round covering two additional extension areas capturing the upside resource potential in the discovery.

The discovery is close to existing infrastructure allowing for a development through multiple export options.

The Kveikje license also contains the Kvinand prospect which is currently being evaluated as a possible drilling target. Kvinand is interpreted as a fault bounded Jurassic trap and has been mapped as the possible northern extension of the Carmen discovery made by PL1149 partners in July 2023.

Licence 1182 S lies in the prolific Norwegian North Sea, 4kms south of our Kveikje discovery and comprises the Lotus prospect (also named the Kjøttkake prospect by the licence operator). The prospect reservoir is represented by Palaeocene injectite sandstones, characterised by excellent reservoir properties with seismic amplitude support. Lotus is analogous to Kveikje which has porosities of 30%.

Based on the Longboat JAPEX’s estimates in the APA 2022 application, Lotus contains gross mean prospective resources of 27 mmboe with further potential upside estimated at 44 mmboe. The chance of success associated with the Lotus prospect is 56% with the key risk being hydrocarbon retention.

The Lotus prospect will be drilled using the semi-submersible Deepsea Yantai and is expected to be drilled during Q3 2024. If successful, Kjøttkake/Lotus is likely to form part of an area cluster development together with Kveikje and several other recent discoveries in the area, through existing infrastructure. In December 2023, Longboat JAPEX farmed down its licence interest to Concedo AS from 30% to 15%.

Statfjord East is located seven kilometres to the northeast of the Statfjord field in a maximum water depth of 190 metres and produces oil and gas from two subsea production templates and one water injection template tied-back to the Statfjord C platform. The Norwegian Ministry of Petroleum and Energy approved a redevelopment plan in 2021 to drill five new production wells into potentially undrained areas of the field while also adding gas-lift to increase production levels.

Production is expected to increase significantly early in 2024 when the new wells will be brought on stream. Gas-lift installation has been completed.

The Sygna field is located just northeast of the Statfjord Nord field in 300 metres water depth. Sygna produces oil and gas from good quality, Middle Jurassic sandstone in the Brent Group. Originally discovered in 1996, the field began production in 2000 from three production wells tied-back via a subsea template to the Statfjord C facility. A long-reach water injection well was also drilled from the Statfjord Nord template. The field is currently anticipated to produce until the early 2030s.

Gas-condensate was encountered in the OMV operated Oswig exploration well 30/5-4S, drilled in September 2022. The well was consequently side-tracked and a drill stem test (“DST”) performed in the Upper Tarbert Formation. The key objectives of the DST were to establish reservoir productivity, detailed fluid properties and determine the range of recoverable resources.

The Oswig sidetrack (30/5-4A) was drilled to a depth of 4,726 metres TVDSS. The average production rate from the DST was approximately 2.1 mmscfd of gas and 280 bpd of condensate (approximately 650 boepd in aggregate) through a 10/64-inch choke. The DST successfully proved the ability of Oswig to flow hydrocarbons from poor quality reservoir.

The preliminary estimate of recoverable resources in Oswig has been estimated by the Operator to be between 10 and 42 million boe (gross) based on in-place volumes of 100 to 215 million boe and a condensate/gas ratio of 110-130 bbl/mmscf. The partnership is integrating the DST results into its understanding of the field and evaluating possible well configurations with the objective of maximising flow rates in a future potential development.

Significant upside has been identified in a potential southern extension in the same fault block. The PL1100 group was subsequently granted licence PL1100C (Longboat JAPEX 20%) in the APA 2022 licensing round containing Oswig South.

The crest of the Oswig South prospect is located at a shallower depth than Oswig and is therefore expected to have better reservoir quality. The prospect has the potential to double the size of the existing discovery.

This licence contained the deep Cambozola prospect which was drilled in 2022. The target for further exploration in the license is the shallower levels and the license has been stratigraphically split with two prospects mapped, both targeting Tertiary plays:

Sjøkreps is a fault-bounded three-way dip closure at Palaeocene level (preliminary estimated recoverable volumes ranging between 20 to 300 mmboe (P90-P10) with the main risk being quality of reservoir

Jasmine prospect is an injectite prospect at Eocene level which is analogous to the Kveikje discovery, and has recoverable volume range preliminarily estimated between 10 to 30 mmboe (P90-P10) with the main risk being reservoir quality.

The work programme consists of seismic studies, potential seismic reprocessing and integration of results from ongoing and near-term wells in the area, which combined have the potential to significantly improve the Chances of Success ahead of making a drill decision. The potential drilling decision has to be made by February 2025.

In December 2023, Longboat JAPEX farmed down its licence interest from 40% to 25% in a deal with Concedo AS.