(Alliance News) - Longboat Energy PLC on Monday said it has acquired an interest in two initial production assets located on the Norwegian Continental Shelf, funded by an investment from a new Japanese partner.

Shares in Longboat Energy were down 7.5% to 23.13 pence each in London on Monday after midday.

The Norway and Malaysia-focused full-cycle exploration and production company said it acquired a 4.8% unitised interest in the Statfjord Ost unit and a 4.3% unitised interest in the Sygna unit, together referred to as the Statfjord satellites.

Longboat subsidiary Longboat Energy Norge AS bought the two assets from Inpex Idemitsu Norge AS for USD12.8 million.

The acquisition will represent long-term cash flow, with the fields expected to produce until the late 2030s, Longboat Energy said. This includes production of around 300 barrels of oil equivalent per day net to Longboat Norge, based on figures to April 30.

Longboat added that there are audited 2P reserves of 1.6 million barrels of oil equivalent net to Longboat Energy Norge, of which approximately 77% is oil and natural gas liquids.

Longboat Energy said production is anticipated to approximately double in 2024 following a five-well in-fill drilling programme, which is currently underway and a gas-lift installation which is already completed.

Longboat Energy also said Longboat Energy Norge will become a joint venture between Longboat Energy and Japan Petroleum Exploration Co Ltd, or Japex, on completion of the investment into Longboat Norge by Japex announced in early May.

The USD12.8 million consideration is fully funded by Japex's investment in Longboat Energy Norge, Longboat Energy said, while the anticipated payback on the transaction is under two years.

"We are pleased to announce our first production acquisition in Norway, the next step in realising our growth ambitions on the Norwegian Continental Shelf. The Statfjord satellites are two high-quality, long-life assets undergoing an exciting and transformative redevelopment led by Equinor," said Longboat Energy Chief Executive Officer Helge Hammer.

"Longboat's ability to secure this acquisition through a bilateral negotiation continues to demonstrate the company's deep relationships in Norway and is an important next step in creating a full cycle exploration and production company.

"We would also like to thank our new joint venture partner, Japex, with whom we have worked in close cooperation to execute this important transaction. The Statfjord satellites help position the enlarged business for future success and proves the benefits of joint venture concept."

By Greg Rosenvinge, Alliance News reporter

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