Longboat Energy PLC (AIM:LBE) told investors it is to pivot to focus on Southeast Asia and is selling out of its joint venture in Norway.
The company, in a statement, revealed that it had agreed to sell its 50.1% stake in its Longboat JAPEX Norge to partner JAPEX. The deal is priced at $2.5 million, plus Longboat’s share of debt under the JV.
Longboat said that recent structural changes in Norway, which favour “an increasingly small group of very large companies”, left the company unable to establish a meaningful growth platform.
So, supported by the asset sale proceeds it is now seeking growth elsewhere.
The sale, which generated $2.50 million, provides Londboat with working capital through the end of Q1-2025.
In the meantime, the company is to undertake a farm-out process for Malaysian Block 2A, reacting to what it described as “significant industry interest”.
The company noted that it has also provisionally secured a cluster of undeveloped gas fields in shallow water Sarawak, which are capable of near-term development.
It also said that cost-saving measures, including a streamlined board and management team, have resulted in annual savings exceeding $1.25 million.
"In Southeast Asia we are finding cooperative and welcoming governments plus a supportive regulatory environment which in combination is creating lots of interesting opportunities,” chief executive Nick Ingrassia said in a separate statement.
“The reshaped board and management team have been operating in the region for many years and, importantly, we understand what is expected of us by our hosts."
In London, meanwhile, Longboat shares were up 2.25p or 31% in Monday’s early deals to change hands at 9.5p each.