Longboat Energy, a full-cycle exploration and production (E&P) company operating in Norway and Malaysia, has completed a farm-down transaction of two exploration licenses on the Norwegian Continental Shelf (NCS) through its subsidiary Longboat JAPEX Norge AS.

“This farm down is in line with our strategy to retain exposure to high-quality exploration wells but at minimum use of the company’s equity capital,” said Longboat Chief Executive Helge Hammer.

The company has farmed down its interest in PL1182S from 30% to 15% in return for a full carry of the Kjøttkake/Lotus exploration well, up to an agreed cap above the dry well budget. The well is expected to spud in Q3 2024.

In PL1049, which contains the Jasmine and Sjøkreps prospects, Longboat JAPEX has farmed down its interest from 40% to 25% in return for the private Norwegian oil company Concedo, as carrying an element of the company’s 2024 exploration expenditure, which mainly consists of seismic costs and studies.

The company has achieved a 66% technical success rate from drilling nine exploration wells in Norway, resulting in six hydrocarbon discoveries.

Moreover, Longboat entered Malaysia in February 2023 through the award of a Production Sharing Contract for Block 2A, offshore Sarawak, with a 52.5% operated interest.

In July 2023, Longboat formed a joint venture with Japan Petroleum Exploration Co., Ltd. (JAPEX) to create Longboat JAPEX Norge AS, in which it holds a 50.1% ownership stake.