Longboat Energy PLC (AIM:LBE) has struck a deal to farm out Norwegian exploration assets to Concedo AS, securing funding for planned drilling activities.
The company is effectively selling a 15% stake in the Lotus exploration well in return for a 100% ‘carry’ of its share of drill costs up to an agreed cap. The well is slated for the third quarter of 2023.
It is also farming out 15% of the Jasmine and Sjøkreps prospects, in exchange for a 15% carry of next year’s spending.
"We are pleased to announce the successful farm down of the two Norwegian exploration licences and the full carry of the Lotus exploration well cost, which is in line with our strategy to retain exposure to high quality exploration wells but at minimum use of the company's equity capital,” chief executive Helge Hammer said in a statement.
He added: “we remain fully focussed on delivering on our plans to grow production and reserves in high quality assets in Norway and in SE Asia."
Lotus is estimated, internally, to host a potential 27 million barrels oil equivalent, with up to 44 million barrels of additional upside. It is seen as part of a potential ‘cluster’ development project.
Sjøkreps, meanwhile, is estimated in a range between 20 million and 300 million barrels, whilst Jasmine is seen at 10 million to 30 million.