1

VAR ENERGY SPUDS RODHETTE EXPLORATION WELL IN THE BARENTS SEA

Longboat Energy, the emerging full-cycle North Sea E&P company with a portfolio of significant, nearterm, low-risk exploration assets, announced the spudding of the Var Energi-operated Rødhette exploration well located in the Barents Sea
The drilling of the Rødhette prospect (Company 20%) has commenced using the deep water Scarabeo 8 semi-submersible drilling rig. This is a proven Jurassic play in the Hammerfest Basin with the potential for early monetisation through a 30km tie-back to the Goliat Field. The well, operated by Vår Energi, is expected to take up to six weeks to drill with an estimated pre-carry net cost to Longboat of c.$7 million (c.$1.5 million post tax). The Rødhette prospect is estimated to contain gross mean prospective resources of 41 mmboe with further potential upside to bring the total to 81 mmboe. The chance of success associated with this prospect is 41% with the key risk being related to fault seal and oil column thickness.
(Source: Longboat Energy)