- Faroe Petroleum
- 15 July 2024 12:20:19
Source: Sharecast
The AIM-traded firm said the transaction resulted in Longboat receiving the full cash consideration of $2.5m.
Japex had also taken on all future financial obligations related to LJN, including existing debt.
The proceeds from the sale, combined with Longboat's existing cash reserves and savings from ongoing cost reduction efforts, were expected to provide sufficient capital for the company through the end of the first quarter of 2025.
Longboat said its immediate focus would be on its operations in Malaysia, including the farm-out of Block 2A, which houses the Kertang prospect, and finalising a production sharing contract with Petronas for several substantial undeveloped gas fields primed for near-term development.
In the coming months, Longboat said it planned to undergo a rebranding and renaming process as part of its strategy to position the business for future success in the Southeast Asian market.
“I would like to thank both our staff and partner, Japex, for their tremendous efforts in managing to complete the process of withdrawing from Norway in just under a month from announcement,” said executive chairman James Menzies.
“Following completion of our transaction with Japex, Longboat's streamlined board and management team will now direct its full focus on building a business in Southeast Asia.
“We will take advantage of the exciting opportunity in front of us to grow shareholder value.”
At 1152 BST, shares in Longboat Energy were up 0.23% at 21.55p.
Reporting by Josh White for Sharecast.com.