Longboat Energy Expands Stake in Block 2A Offshore Sarawak with Topaz Acquisition

Wednesday, September 13, 2023

Longboat Energy, an E&P company active in Norway and Malaysia, has agreed to acquire privately held Topaz Number One Limited ("Topaz"), increasing its working interest in the Production Sharing Contract over Block 2A offshore Sarawak, Malaysia ("Block 2A") to 52.5%.

Topaz's sole asset is a 15.75% working interest in Block 2A, which Longboat entered in February 2023 through the award of a Production Sharing Contract, alongside partners Petronas Carigali Sdn. Bhd (40%), Petroleum Sarawak Exploration & Production Sdn. Bhd. (7.5%) and Topaz.

The block contains what has been described as a giant 'Kertang' prospect. It covers approx. 12,000 km2 and is located in water depths of between 100-1,400 meters. According to Longboat Energy, the block contains a "number of large prospects across multiple plays have been identified, with significant volume potential representing multiple trillions of cubic feet of gas."

"Following completion of [the Topaz] transaction, Longboat will hold an operated 52.5% interest in Block 2A, simplifying the process towards a positive well decision and the potential introduction of an additional funding partner prior to drilling," Longboat said.

The Topaz team, comprised of James Menzies (former CEO of Coro Energy) and Pierre Eliet (former Lundin Energy and Roc Oil director), will join Longboat Energy, bringing extensive regional expertise and an established network, accelerating Longboat's ambitions to build a full cycle E&P business in SE Asia.

Helge Hammer, Chief Executive of Longboat Energy, commented: "We are pleased to have increased our interest in the extensive and prospective Block 2A in deep water Sarawak, which contains the giant Kertang prospect. Sarawak has seen significant exploration success in recent years, and we are excited to play a role in the quest for additional gas resources in the area.

 "We welcome James and Pierre to Longboat. Their extensive experience and network from SE Asia combined with our in-house technical expertise, puts us in a strong position to deliver accelerated growth in the region. In parallel with maturing Block 2A towards the drilling decision, we focus on adding production and development assets to our portfolio in SE Asia."

 According to Longboat Energy, the Kertang prospect is a large anticlinal structure with a closure of over 100km2 at multiple levels and significant volume potential representing multiple trillions of cubic feet (TCF) of gas in stacked reservoirs. Seismic indicators for the presence of gas can be observed in the area and over the crest of the prospect.

Credit:  Topaz Number One Limited

The consideration for the acquisition will be satisfied in three tranches: an initial issue of new ordinary shares of 10 pence each in the company equivalent to US$100,000; upon completion of the acquisition; a contingent amount of US$125,000 payable in cash or through a further issue of Ordinary Shares of an equivalent value, upon an exploration well being committed on Block 2A or a farm-out; and a contingent amount of up to US$3,000,000 payable in cash or through a further issue of Ordinary Shares of an equivalent value, upon a discovery being made on Block 2A, depending on the resource size and the growth in the price of the Ordinary Shares measured over a two year period.

Longboat Energy said it believed that an equity position of this size [52.5%] would accelerate the drilling of the Kertang prospect by simplifying the process towards a positive well decision and the potential introduction of an additional funding partner prior to drilling.

Categories: Energy Mergers & Acquisitions Drilling Industry News Activity Asia

Related Stories

Transocean’s Drillship to Stay in India Under New $111M Deal

Yinson and PetroVietnam JV Get FSO Contract for Vietnamese Field

Keppel Reclaiming Control of 13 Rigs to Cash In on Offshore Drilling Market's Growth

Blackford Dolphin Kicks Off Long-Term Drilling Campaign Offshore India

Shelf Drilling Secures $200M Contract Extensions with Chevron for Thailand Ops

ABS Gives Its Blessing to SHI’s Ammonia FPSO Design

TotalEnergies Signs LNG Supply Deal with South Korea’s HD Hyundai Chemical

TotalEnergies Extends LNG Supply Agreement with CNOOC Until 2034

Korea's Hanhwa Sets Out Plan for Full Takeover of Singapore's Dyna-Mac

Santos Pens Mid-Term LNG Supply Deal

Current News

Vestas Lands First 15MW Offshore Wind Turbine Order in Asia Pacific

Shell Shuts Down Oil Processing Unit in Singapore Due to Suspected Leak

Flare Gas Recovery Meets the Future

Pharos Energy Extends Licenses for Two Vietnamese Gas Fields

Offshore Drilling 2025: 3 Things to Watch During a Year of Market Corrections

Subsea Redesign Underway for Floating Offshore Wind

The Five Trends Driving Offshore Oil & Gas in 2025

China’s CNOOC Brings Bohai Sea Oil Field On Stream

Offshore Service Vessels: What’s in Store in 2025

ABS Approves Hanwha Ocean’s FPSO Design

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com