Wednesday 2 June 2021

Longboat Energy, established by the former management team of Faroe Petroleum plc to build a significant North Sea-focused E&P business, is pleased to announce it has reached agreement on a bilateral basis with three separate counterparties to acquire a significant, near-term, low-risk exploration drilling programme on the Norwegian Continental Shelf (“NCS”) structured as three farm-in transactions (together the “Farm-Ins” or the “Transactions”).

Longboat further announces its intention to carry out a proposed equity financing to raise gross proceeds of £35 million, to be conducted by means of a placing and subscription for new ordinary shares in the Company (the “Proposed Fundraising”). The net proceeds from the Proposed Fundraising will be used principally to finance the consideration for the Farm-Ins and costs associated with the high-impact drilling programme, as well as the acquisition of certain seismic data and general corporate costs.

The Transactions are classified as a reverse takeover pursuant to the AIM Rules for Companies and accordingly the Company's shares will be suspended from trading on AIM as of 7:30am today. The Company's ordinary shares will remain suspended from trading on AIM until such time as either an Admission Document setting out details of the proposed Farm-Ins is published or confirmation is given that the Transactions are not proceeding. Completion of the Farm-Ins and Proposed Fundraising are subject to approval by Longboat's shareholders at a general meeting to be convened in due course (the "General Meeting"). The Admission Document, which will include a notice of General Meeting, is expected to be issued following pricing of the Proposed Fundraising.