Friday 11 June 2021

Further to its announcement on 1 June 2021, Longboat Energy is pleased to announce it has successfully raised gross proceeds of £35 million by means of a conditional placing and subscription for New Ordinary Shares (the “Fundraising”). The Fundraising was completed at a price of 75 pence per share (the "Fundraising Price"). The Fundraising represents 467% of the Company's existing ordinary share capital, or 46,666,666 New Ordinary Shares in total (45,213,332 Placing Shares, 1,453,334 Subscription Shares). The Fundraising Price is equal to a 6.8% discount to the closing mid-market price on 31 May 2021 (being the business day prior to the date on which trading in the Company’s shares was suspended).

The Company also announces that it has executed farm-in agreements with Equinor Energy AS (“Equinor”) and Spirit Energy Norway AS (“Spirit”) with a third transaction anticipated to be executed imminently (collectively the “Farm-Ins” or the “Transactions”). As part of the financing of the Transactions, Longboat has also executed a NOK 600 million (£52 million) Exploration Finance Facility (“EFF”) with SpareBank 1 SR-Bank ASA and ING Bank N.V.

Together, the Fundraising and EFF will enable Longboat to pursue a significant, near-term, low-risk exploration drilling programme on the Norwegian Continental Shelf across seven wells targeting net mean prospective resource potential of 104 MMboe and an additional 220 MMboe of upside and follow-on prospectivity. The first well in the programme is expected to spud in Q3 2021. A full list of the licences and working interests to be acquired are detailed below. The cost of the carry element of the Transactions is fully eligible for the Norwegian tax refund system reducing the net cost to Longboat to $7.8 million on a post-tax basis ($35 million pre-tax).

The Transactions are classified as a reverse takeover pursuant to the AIM Rules for Companies. Completion of the Farm-Ins and Fundraising are subject to approval by Longboat's shareholders at a general meeting to be convened on 28 June 2021 (the "General Meeting").

The Company expects to publish the Admission Document, which includes a circular and notice of General Meeting, later. Accordingly, following publication of the Admission Document, trading in the Company's existing ordinary shares (the “Existing Ordinary Shares”) on AIM is expected to be restored from 7.30 a.m. on 11 June 2021.

The Company will release further announcements as and when appropriate.

Helge Hammer, Chief Executive of Longboat, commented:

“The Board of Longboat is delighted by the support we have received from new and existing shareholders. Securing these Farm-Ins will enable us to pursue a significant, near-term, low-risk exploration drilling programme. We can now look forward to a busy period of almost continuous drilling and frequent catalysts during the next 18 months.

“Our ambition remains to build Longboat in to a full-cycle, North Sea E&P company.”