Longboat Energy PLC (AIM:LBE) has expanded its offshore footprint, picking up acreage in Norway’s 2023 licensing round.
It was granted a 20% interest in Licence PL 1212 S, which hosts the Magnolia prospect, located in an area that’s been a focus for Longboat since 2021 – with the Kveikje discovery nearby.
This new licence award comes in partnership with Equinor Energy and DNO Norge.
Under the licence terms, the partners will be required to acquire and process modern 3D seismic along with and geological and geophysical studies within the first year.
"We are pleased to have been awarded this additional licence, which will add to our core area around Kveikje, where Longboat has already discovered significant volumes and will be drilling the carried exploration well on Kjøttkake/Lotus later this year,” chief executive Helge Hammer said in a statement.
“We look forward to working with our partners to build on the success and add further value in this emerging development area."
The Magnolia prospect is presently estimated to host some 39 million barrels oil equivalent, with upside of 57 million barrels presently pencilled in.
Longboat, elsewhere, also noted that the final well in the Statfjord Satellites redevelopment – a set of projects that are being acquired by the company – has now been drilled successfully.
It expects the satellite projects, the Statfjord Øst and Sygna fields, will begin increasing production during the first quarter of 2024, meanwhile the company’s deal to acquire the fields is expected to be finalised by the end of January.