Final Results for the Year Ended 31 December 2019

Longboat Energy, established by the former management team of Faroe Petroleum plc to build a significant North Sea-focused E&P business, announces its preliminary results for the period from incorporation on 28 May 2019 to 31 December 2019.

Operational and strategy update
Since Longboat was admitted to AIM on 28 November 2019, the Directors’ time and resources have been fully deployed in meeting the Company’s investment objective to create a full-cycle North Sea E&P company in order to deliver value to shareholders.

The Company’s Board of Directors has excellent relationships across the North Sea oil and gas industry, which the Company intends to use in order to access attractive bi-lateral deal opportunities.

The Company is targeting an initial acquisition that will deliver near term cashflow as well as provide an appropriate platform upon which to achieve the Company's investment objectives. Initial acquisition targets are expected to be:
- located offshore Norway and the UK or the wider EEA region;
- producing and/or near producing assets, providing cash flows to fund organic growth with robust economics, sustainable in a low oil price environment;
- assets with identifiable upsides via organic growth through further field investment (infill drilling etc.), potential near-field exploration and with follow on opportunities to deliver a hub strategy;
- assets with aligned partnerships where the Company can influence and optimise operations; and
- assets where the management team's experience is valued by the other licence partners and the authorities and can be exploited to add value.

The North Sea oil and gas industry has been experiencing an extended period of significant consolidation and the assets that are being targeted are typically non-core to existing large E&P companies, and where the Directors believe that the investment objectives of the Company to create significant value can be met. The Company’s investment objectives are intended to be achieved:
- through geological expertise, technical knowledge and understanding in addition to deep experience across the E&P life cycle;
- through cost reductions and targeted investments in the assets to be acquired; and
- by focusing on assets that have the potential to provide material upside to Longboat Energy.

The Company aims to deliver value by applying the business model of growing production and reserves through value creative M&A combined with exploration. Longboat will focus on ‘near field’ exploration with access to infrastructure and de-risking through nearby discoveries.