Longboat completes sale of shares in Longboat Japex Norge to Japex

Southeast Asia-focused exploration and production company Longboat Energy has completed the sale of its 50.1% holding in Longboat Japex Norge (LJN) to its joint venture partner Japan Petroleum Exploration Co. (Japex), the company announced on July 15.

Longboat has received the full cash consideration of $2.5mn, and Japex has now assumed all future financial obligations associated with LJN, including existing debt. Japex announced the deal in June this year. 

Proceeds from the transaction, along with Longboat's existing cash resources and savings from cost reduction measures, are forecast to provide sufficient capital through the end of Q1 2025, it said.

Longboat added that its near-term focus remains on its Malaysian activities. This includes the farm-out of Block 2A, which contains the Kertang prospect, and finalising negotiations with Petronas on a production sharing contract for several undeveloped gas fields capable of near-term development.

The company also plans to rename and rebrand in the near future.

In July 2023, Japex acquired shares in LJN to lay the foundation for its business expansion in Norway. LJN is currently engaged in exploration and development across multiple license interests in the Norwegian North Sea. Additionally, Japex completed the acquisition of interests in production assets in January 2024, and crude oil and natural gas production from these assets has begun.