(Alliance News) - Longboat Energy PLC on Tuesday said its joint venture company Longboat JAPEX Norge AS has commenced drilling at its Velocette exploration well, offshore Norway.

The Norway and Malaysia-focused full-cycle exploration and production company said Velocette is estimated to contain about 177 million barrels of oil equivalent, 35 million barrels of which will be owned by Longboat JAPEX.

Velocette is a gas-condensate prospect located in the Norwegian Sea. The license is 20% owned by Longboat JAPEX, while OMV Norge AS has a 40% operating stake, and INPEX Idemitsu Norge AS holds the remaining 40%.

Longboat JAPEX is a joint venture between Longboat and Japan Petroleum Exploration Co Ltd.

The company added that multiple follow-up opportunities exist within the license, with unrisked mean resources of about 200 million barrels of oil equivalent, and would be "significantly de-risked by success in the Velocette well".

Chief Executive Helge Hammer said: "We are excited to have commenced drilling the Velocette prospect which will be our ninth exploration well. Velocette is a gas weighted opportunity targeting very significant prospective resources. The exploration well also has significant follow-on potential that will be derisked in the case of success."

Longboat Energy shares fell 4.5% to 28.41 pence each on Tuesday afternoon in London.

By Harvey Dorset, Alliance News reporter

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