Longboat Energy, a recently formed North Sea exploration and production firm, has announced the spudding of the Rødhette exploration well in the Barents Sea, off Norway, by its partner Vår Energi.
Longboat, formed by ex-Faroe Petroleum management, owns a 20 percent stake in the license containing the Rødhette prospect. Vår Energi is drilling the well using the Scarabeo 8 semi-submersible drilling rig.
"This is a proven Jurassic play in the Hammerfest Basin with the potential for early monetization through a 30km tie-backto the Goliat Field." Longboat said.
The well is expected to take up to six weeks to drill with an estimated pre-carry net cost to Longboat of c.$7 million (c.$1.5 million post tax).
The Rødhette prospect is estimated to contain gross mean prospective resources of 41 mmboe with further potential upside to bring the total to 81 mmboe. The chance of success associated with this prospect is 41% with the key risk being related to fault seal and oil column thickness.
Three more wells in 2021
Longboat expects to see three more wells drilled this year. The Egyptian Vulture prospect (Longboat 15%) is expected to start towards the end of September using the West Hercules semi-submersible drilling rig, which is on a long-term contract with the operator, Equinor.
The Egyptian Vulture well is targeting gross mean prospective resources of 103 mmboe with further potential upside to bring the total to 208 mmboe on a gross basis. The chance of success associated with this prospect is 25% with the key risk being related to reservoir quality and thickness.
Drilling of the Mugnetind prospect (Longboat 20%) is also scheduled to start at the end of September using the Maersk Integrator jack-up drilling rig. The Mugnetind prospect, operated by Aker BP, is estimated to contain gross mean prospective resources of 24 mmboe with further potential upside estimated at 47 mmboe on a gross basis. The chance of success associated with the Mugnetind prospect is 51% with the key risks being reservoir presence/quality.
Drilling of the dual-target Ginny and Hermine prospects (Company 9%) is now scheduled to start in December 2021, using the West Hercules semi-submersible drilling rig operated by Equinor. These prospects have a combined target gross mean prospective resource of 68 mmboe with further potential upside estimated at 129 mmboe on a gross basis. The chance of success associated with these prospects are 27% and 22%, respectively, with the key risk being related to fault seal and phase risk.
In 2022, Longboat will take part in three wells. too
Helge Hammer, Chief Executive of Longboat said: "The exploration programme 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 104MMboe with an additional 220 MMboe of upside which provides the potential to create a Net Asset Value of over $1 billion based on precedent transactions in the Norwegian North Sea for development assets.”