Business
Norwegian JV Transaction with JAPEX completed
Norwegian JV Transaction with JAPEX completed.
About this update from Seascape Energy Asia Plc
[{"type":"text","content":"\n\n17 July 2023\n \n \n Longboat Energy plc \n(\"Longboat Energy\", the \"Company\" or \"Longboat\")\n \nTransaction to create Norwegian Joint Venture with JAPEX completed\n \nLongboat Energy, the full-cycle E&P company, is pleased to confirm that its transaction with Japan Petroleum Exploration Co., Ltd (\"JAPEX\") to establish a joint venture in Norway has now been completed with the initial investment of US$16 million received by the renamed entity Longboat JAPEX Norge AS (\"Longboat JAPEX\" or the \"JV\"). As part of the transaction, Longboat JAPEX will use part of the JAPEX investment to repay an intercompany loan of NOK 45.5 million (approximately £3.5 million) to Longboat Energy.\n \nThe contingent consideration of US$4 million, payable by JAPEX into the JV, associated with the recently announced production acquisition, will be paid on completion of that transaction which is anticipated toward the end of the year.\n \nThe third tranche (the \"Velocette Tranche\") of up to US$30 million is contingent on a successful discovery on the Velocette well, which is expected to spud in September. The amount payable under the Velocette Tranche is based on a sliding scale applied to the gross resources approved for development by the Norwegian Ministry of Petroleum and Energy.\n \nHaving completed the transaction, the US$100 million Acquisition Financing Facility to finance acquisitions and associated development costs has been established and is available for drawing by the JV.\n \nLongboat JAPEX is owned 50.1% by Longboat and 49.9% by ...