Private Blog, 20 March 2022
Financial and promotional perspectives
20 March 2022
Companies of interest:
Longboat Energy (LBE) held steady at 54p. The company announced on 9 March the spud of the Kveikje exploration well (10% Longboat interest), the drilling of which is expected to take up to four weeks. Kveikje is estimated to contain gross mean prospective resources of 36 million barrels of oil equivalent with further potential upside estimated at 79 million barrels of oil equivalent on a gross basis. Chance of success associated with the prospect is 55%. Secondary prospects, Rokke and n’Roll, have an additional 127 million barrels of oil equivalent of gross mean prospective resources with chances of success in the range of 14%-34%. Four wells in the current seven well programme have already been drilled and at least one of these, Egyptian Vulture (15% interest), is believed to be commercial with a preliminary recoverable resources estimate of 19 to 63 million barrels of oil equivalent. Still to come are Cambozola (25% interest) spudding in the spring and Copernicus (10% interest) spudding in the summer. Cambozola and Copernicus, are the big ones, with mean resource estimates of 159 million barrels of oil equivalent and 254 million barrels of oil equivalent respectively and chances of success of 15% and 26%. Market capitalisation is £31 million.