Longboat ups stake in Malaysia block with Topaz acquisition

(Sharecast News) - Norway and Malaysia-focussed explorer and producer Longboat Energy announced the acquisition of the privately-held Topaz Number One on Wednesday, increasing its working interest in the production sharing contract over Block 2A offshore Sarawak, Malaysia to 52.5%. The AIM-traded firm said Topaz's sole asset was a 15.75% working interest in Block 2A, which contains the giant 'Kertang' prospect.

Following completion, Longboat would 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.

The Topaz team, consisting of James Menzies and Pierre Eliet, would join Longboat Energy, bringing extensive regional expertise and an established network, accelerating Longboat's ambitions to build a full cycle exploration and production business in south east Asia.

It said the transaction consideration closely aligned the Topaz team with value delivery from Block 2A.

"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," said chief executive officer Helge Hammer.

"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."

Hammer said their extensive experience and network from south east Asia, combined with the company's in-house technical expertise, left it 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 south east Asia."

At 1155 BST, shares in Longboat Energy were up 3.09% at 23.71p.

Reporting by Josh White for Sharecast.com.