Illustration; Credit: Clyde Thomas/Longboat Energy

Three players rolling up their sleeves to make two North Sea prospects drill-ready following licence split

A new licence group – consisting of DNO Norge, Longboat Energy, and Petoro – has been formed while an extended work period has been granted for a licence, which has been stratigraphically split and renamed. This new licence has two identified exploration prospects, which the trio plans to de-risk prior to making a drilling decision.

Illustration; Credit: Clyde Thomas/Longboat Energy

According to Longboat Energy, it initially held 25 per cent in PL1049 where the deep Cambozola prospect was drilled in 2022. As the target for further exploration in the licence is the shallower levels, this licence has been stratigraphically split and renamed PL1049S. The company now holds a 40 per cent interest in the new licence while DNO Norge, which acts as operator, also has a 40 per cent stake and Petoro holds the remaining 20 per cent interest.

Furthermore, the new licence group is retaining PL1049S, where two prospects have been mapped, Sjøkreps and Jasmine, both targeting Tertiary plays. As the area is covered with new seismic data combined with new processing techniques, Longboat concludes that there is significant potential to de-risk the exploration prospects. The Tertiary play has been proven to be successful in the area including in the Kveikje discovery in PL293B, only 12 km to the east.

Helge Hammer, Chief Executive of Longboat Energy, commented: “We are pleased to be able to retain PL1049S in an area which has seen considerable exploration success in recent years including our own Kveikje discovery in April last year. It is exciting that with new high-quality seismic data together with our substantial in-house expertise, we have a unique opportunity to de-risk exploration opportunities and add new resources in this very prolific part of the Norwegian North Sea.”

The company explains that Sjøkreps is a fault-bounded three-way dip closure at Palaeocene level and has preliminary estimated recoverable volumes ranging between 20 to 300 mmboe (P90-P10) with the main risk being the quality of reservoir.

On the other hand, the Jasmine prospect is an injectite target at Eocene level, which is analogous to the Kveikje discovery, and has a recoverable volume range preliminarily estimated between 10 to 30 mmboe(P90-P10) with the main risk being reservoir quality.

Moreover, the work programme for PL1049S consists of seismic studies, potential seismic reprocessing and integration of results from ongoing and near-term wells targeting the same interval in the area, which combined have the potential to significantly improve the chances of success ahead of making a drill decision, which has to be made by February 2025.

“We look forward to working with DNO and Petoro to mature the Jasmine and Sjøkreps prospects and build our position in this key area where we already have the Kveikje discovery and will be drilling the Kjøttkake (formerly Lotus) prospect next year,” added Hammer.

Longboat Norge is expected to shortly become a joint venture between Longboat Energy and Japan Petroleum Exploration (JAPEX) upon completion of the investment into Longboat Norge by JAPEX. The company is also in the process of expanding its oil and gas portfolio with stakes in two fields, which will become its initial production assets offshore Norway.