Longboat Energy plc (AIM: LBE): Expansion in South East Asia. Simplifying Malaysia.
• Longboat is acquiring Topaz Number One, its partner in Malaysia for an initial consideration of US$0.1 mm in shares in Longboat.• The transaction will boost Longboat’s WI in the Production Sharing Contract over Block 2A offshore Sarawak from 36.75% to 52.5%. The 15.75% WI in the block is the only asset of Topaz Number One.
• Block 2A holds the multi tcf Kertang deep water prospect. The transaction simplifies the ownership structure (with Petronas as the only remaining partner), which could, in turn, simplify a farm out process.
• Longboat will also pay the shareholders of Topaz Number One (1) a contingent amount of US$0.125 mm in cash or shares, upon an exploration well being committed on Block 2A or a farm-out and (2) a further contingent amount of up to US$3 mm in cash or shares upon a discovery being made on Block 2A, depending on the resource size and the growth of the share price of Longboat over a two year period.
• James Menzies and Pierre Eliet from Topaz Number One will join Longboat. They have extensive experience in South East Asia, a region on which Longboat is increasingly expected to focus.
• We anticipate a full update from the management on its growth plans at its interim results on 27 September after a busy period of transactions over the past few months.
Longboat Energy PLC, formerly Longboat Energy Ltd, is a United Kingdom-based investment company. The Company's investment objectives is to create a full-cycle North Sea exploration and production (E&P) company in order to deliver value to investors.
Auctus Advisors is a specialist Equity Capital Markets and Advisory business with a focus in the Energy Sector.
The partners have complementary skill sets, with decades of experience across Equity Capital Markets, Investment Banking and the Energy industry. We have worked at Société Générale, Canaccord Capital, BMO Capital Markets and Schlumberger. Most recently we have worked together for many years at GMP FirstEnergy.
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