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Longboat Energy PLC on Wednesday shared a ‘minor’ discovery at the Velocette exploration well in Norway. Shares in the exploration and production company, active in Norway and Malaysia, were down 14% to 19.72 pence each in London on Wednesday afternoon. It said exploration well 6607/3-1 S has encountered hydrocarbons in the primary target in Cretaceous turbidite sands in the Nise formation. However, the volumes at Velocette are at the lower end of pre-drill expectations, meaning the discovery is ‘not considered to be commercial in isolation’. The well will now be plugged and abandoned as planned. Chief Executive Helge Hammer said: ‘Although we are disappointed not to have made a commercial discovery in Velocette, the presence of good quality sandstone reservoir, which was the main pre-drill risk, and the presence of gas is encouraging. There is significant follow-on potential that has been derisked with this result and we will be working with our joint venture partners to mature these opportunities further.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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