Report
Stephane Foucaud

Longboat Energy plc (AIM: LBE): US$1.8 bn oil producer joins Longboat in Norway.

• JAPEX (Japan Petroleum Exploration) is acquiring 49.9% of Longboat Energy Norge in return for an initial cash injection of US$16 mm in Longboat Norge with an additional contingent cash consideration of US$4 mm linked to a production acquisition in Norway. Longboat Energy will keep the remaining 50.1% in Longboat Norge.
• JAPEX could inject up to a further US$30 mm in cash in case of a discovery at Velocette. The exact amount depends on the discovered volume with a sliding scale of US$/boe values applied to the gross resources approved for development by the Norwegian authorities. The scale has a minimum of 85 mmboe and maximum of 200 mmboe. The mid case prospective resources for Velocette is 177 mmboe.
• JAPEX will also provide Longboat Norge with a 5-year US$100 mm financing facility to finance acquisitions and development costs. The interest cost for the facility begins at 6% with all-in cost of
Underlying
LONGBOAT ENERGY PLC

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.

Provider
Auctus Advisors
Auctus Advisors

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.

Auctus has been set up at the beginning of a new decade in which we see significant opportunities in the Energy space. Globally, demand for energy is at record levels and continues to grow. Conversely, investment in traditional energy sources has been severely constrained. We believe this imbalance creates opportunities for both companies and investors.

Auctus provides Corporate Broking, Equity Research and Investment Banking services. 

Analysts
Stephane Foucaud

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