Having completed its 2022 drilling programme, Longboat Energy (LON:LBE) has secured additional lending and is now looking to its next phase of exploration in 2023.
In an end of year update published Tuesday, the firm marked the completion of its five-well Norwegian exploration programme through this year.
The company farmed-in to a seven-well exploration programme off Norway in 2021, which kicked off that September.
Since then, it has made five discoveries, four of which – Egyptian Vulture, Kveikje, Oswig and Rødhette – are commercial.
Longboat said it was now focused on the former three as key projects to progress, and expects this will be achieved “through a combination of appraisal and monetisation projects”.
The company intends to provide a further update on its forward activity programme in the new year.
Longboat said the campaigns has been concluded in-line with forecast expenditure and estimates its unaudited, year-end 2022 cash position will be approximately £9 million.
Current drawings under its exploration finance facility amount to some NOK 536 million (around £44m) and will be repaid fully from its Norwegian tax rebate due in November 2023.
Longboat also confirmed it has now agreed terms with its lending banks to increase its this finance facility from NOK 600m to NOK 800m (£65m), and extend its availability period to the end of 2024.
It said this additional financing would be used towards its drilling programme “in 2023 and beyond.”
In the meantime, the group looks to its next well at the OMV-operated Velocette prospect (of which Longboat holds 20% equity) due to spud in Q3 2023.
Velocette is estimated to contain gross, unrisked mean resources of 177 million barrels of oil equivalent (boe) – 35 million net to the company – with a geological chance of success of 30%.
The firm is “actively pursuing” other growth opportunities in Norway and internationally.
Chief executive Helge Hammer added: “Longboat is pleased to have completed its 2022 well programme on schedule and on budget having made two discoveries at Kveikje and Oswig.
“Kveikje is one of the largest commercial oil discoveries in Norway during 2022 with excellent reservoir quality, close proximity to infrastructure and multiple development options and we are currently reviewing options which include early monetisation.
“The Oswig gas-condensate discovery has substantial volume potential including a possible large extension towards the south. The discovery is located close to the Oseberg field, which is a major hub in the area and planned for electrification. The partnership is working to evaluate the discovery and to identify the optimal future potential development wells.”
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