Longboat Energy buys into big gas prospects

OIL and gas firm Longboat Energy has bought into a North Sea gas prospect that is estimated to contain around 100 million barrels oil equivalent, following a run of exploration successes.

Longboat, which was formed by former bosses of Aberdeen-based Faroe Petroleum, has acquired a 20 per cent interest in the Oswig prospect through a farm-in deal with Austria’s OMV.

The prospect is estimated to contain 93 million barrels oil equivalent (mmboe). It is in the Norwegian sector of the North Sea, in which

Longboat last month made the Kveikje discovery. Initial estimates suggested Kveikje could contain up to around 50 million barrels recoverable oil.

Longboat has also agreed to acquire a 20 per cent stake in the Velocette gas prospect in the Norwegian Sea from OMV. Velocette is estimated to contain 130 mmboe.

The company has agreed to carry a share of OMV’S costs in exchange for the two stakes. The outlay is expected to be around $3.4m after tax.

Longboat has made three finds off Norway in recent months. Norway offers generous tax breaks in respect of exploration work.