First Exploration Well for North Sea Company Drilled
Longboat Energy has announced that drilling has commenced at Rødhette, the company’s first exploration well.
The drilling of the Rødhette prospect, which Longboat has a 20 percent interest in, was started via the deep water Scarabeo 8 semi-submersible drilling rig, Longboat revealed. The company noted that the asset is a proven Jurassic play in the Hammerfest Basin with the potential for early monetization through an 18-mile tie-back to the Goliat field.
Operated by Vår Energi, the well is expected to take up to six weeks to drill with an estimated pre-carry net cost to Longboat of around $7 million. The prospect is estimated to contain gross mean prospective resources of 41 million barrels of oil equivalent with further potential upside bringing the total to 81 million barrels of oil equivalent, Longboat outlined. The chance of success associated with the prospect is 41 percent, with the key risk being related to fault seal and oil column thickness, the company said.
“I am pleased that we are already under way with exploration drilling,” Longboat Energy’s chief executive, Helge Hammer, said in a company statement.
“Rødhette is the first of three wells, which we expect will begin drilling over the next few weeks in an extremely busy and exciting time for the company. The wells have the potential to create significant shareholder value,” he added in the statement.
“The exploration program over the next 18 months offers shareholders a unique opportunity to gain exposure to a drilling portfolio of seven wells targeting net mean prospective resource potential of 104 million barrels of oil equivalent with an additional 220 million barrels of oil equivalent of upside,” Hammer went on to say.
The Egyptian Vulture well, which Longboat has a 15 percent interest in, and Mugnetind well, which Longboat has a 20 percent interest in, are expected to commence drilling by the end of September, according to Longboat.
Petroleum Safety Authority Norway revealed on August 12 that it had given Vår Energi consent for exploration drilling on Rødhette, which is located in block 7122/6 in the Barents Sea.
Longboat Energy was established by the ex-Faroe Petroleum management team to create a full-cycle North Sea exploration and production company through value accretive mergers and acquisitions and low-risk, near-field exploration. Since its IPO on AIM in November 2019, the company has been pursuing potential acquisitions, utilizing its substantial industry network in the North Sea oil and gas industry to identify attractive opportunities, according to Longboat.
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