Longboat Energy : Interim Report and Financial Statements for the 6 months period to 30 June 2022

Longboat Energy plc

("Longboat Energy", the "Company" or "Longboat")

Interim Results to 30 June 2022

London, 26 September 2022 - Longboat Energy, the emerging full-cycle E&P company, is pleased to announce its unaudited interim results for the period to 30 June 2022.

Helge Hammer, Chief Executive Officer of Longboat Energy, commented:

"Last week we announced our fourth discovery from eight wells drilled over the past 15 months. This drill programme has not only made us one of the most active companies in the Norwegian North Sea but also one of the most successful in that period with discovery rates well-ahead of the industry average.

"Of those eight wells, five have been drilled this year delivering two of our most exciting discoveries to date in Oswig and Kveikje. Kveikje has excellent quality reservoir in an attractive location near infrastructure. The initial indications from Oswig are very encouraging and we should have the results of further testing in the next 6-8 weeks. Our discoveries to date, as well as next year's Velocette exploration well, all have the potential to create substantial value to shareholders."

Operational Highlights

• Encouraging results from Longboat's initial eight wells exploration drilling programme with success rates and finding costs better than industry average
• Two discoveries so far this year: Kveikje and Oswig
• Kveikje discovery (Longboat 10%):

1. Excellent reservoir qualities and attractive location near infrastructure.

1. Preliminary estimates of recoverable resources in the excellent quality injectite reservoir were 28 to 48 mmboe gross1)

• 1. Focus on near-term monetization opportunities following multiple enquiries
• Oswig discovery (Longboat 20%).
• 1. Preliminary analysis of extensive wireline logs and core data indicates strong correlation to nearby Tune field and presence of gas-condensate

1. Preliminary in-place volumes (GIIP) estimated above pre-drill expectations

1. Key uncertainty over recoverable resource range due to challenges collecting downhole data from existing wellbore

• 1. Joint venture decision to sidetrack well and conduct drill-stem test (DST) to establish reservoir productivity, detailed fluid properties and recoverable resource range
• Continued to pursue gas opportunities given its role in energy security and contribution to the energy transition
• 1. Secured further bilateral transaction to acquire interests in two further significant, near-term,low-risk

gas exploration wells on the NCS, Oswig and Velocette

1. Near-termfocus on appraising and monetising existing key discoveries and on building an attractive 3-5 well programme for 2023.

1. Continued main focus on North Sea opportunities, but also assessing wider opportunity set to leverage Longboat's high-quality network, organisation and prior experience set

Financial Summary

• Cash reserves of £22.5 million (30 June 2021 £38.7 million)
• Debt of £15.7 million to be repaid from the Norwegian Government's tax rebate in November 2023
• Loss for the period £1.7 million

This announcement does not contain inside information

Enquiries:
Longboat Energy	via FTI
Helge Hammer, Chief Executive Officer
Jon Cooper, Chief Financial Officer
Stifel (Nomad)	Tel: [phone]
Callum Stewart
Jason Grossman
Simon Mensley
Ashton Clanfield
FTI Consulting (PR adviser)	Tel: [phone]
Ben Brewerton	[e-mail]
Rosie Corbett

Notes:

ERC Equipoise estimates, 2C resources of 35 mmboe with 3C potential of 60 mmboe using a conversion factor of 5,600 scf/stb

2 Under both existing and proposed Norwegian tax legislation, the latter assuming that the Exploration Finance Facility is amended as described in the interim report below

Standard

Estimates of reserves and resources have been prepared in accordance with the June 2018 Petroleum Resources Management System ("PRMS") as the standard for classification and reporting with an effective date of 31 December 2020.

Review by Qualified Person

The technical information in this release has been reviewed by Hilde Salthe, Managing Director Norge, who is a qualified person for the purposes of the AIM Guidance Note for Mining, Oil and Gas Companies. Ms Salthe is a petroleum geologist with more than 20 years' experience in the oil and gas industry. Ms Salthe has a Masters Degree from Faculty of Applied Earth Sciences at the Norwegian University of Science and Technology in Trondheim

Glossary
Mmboe	Millions of barrels of oil equivalent
NCS	Norwegian Continental Shelf
scf	Standard cubic feet
stb	Stock tank barrel

LONGBOAT ENERGY PLC

STRATEGIC REPORT

FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022

CEO Introductory Statement

Well results and assets

In June of last year we announced that we had farmed-in to a programme of seven exploration wells in Norway in three bilateral transactions with Equinor, Spirit and Idemitsu. Three of the wells were drilled in the second half of last year, which resulted in two discoveries: Egyptian Vulture and Rødhette. In May this year the Company farmed into two further exploration wells in a bilateral transaction with OMV. Since the beginning of this year, five exploration wells have been drilled resulting in a significant oil discovery on the Kveikje prospect, unsuccessful wells in Ginny-Hermine, Cambozola and Copernicus and, as recently announced, a discovery on Oswig which is now being tested.

In the Kveikje well (Longboat 10%), we encountered hydrocarbons at all four targets levels. Preliminary estimates of recoverable resources in the excellent quality injectitie reservoir were 28 to 48 mmboe gross. Kveikje is operated by Equinor and is located in an area to the north of the giant Troll field with significant infrastructure and multiple tie-back opportunities. Furthermore, several third-party discoveries have been made close to Kveikje during the last few years, such as Røver Nord, Toppand and Swicher, which will allow for significant operational synergies and economies of scale as the Kveikje development moves forward.

The Company's fourth transaction announced in May was to farm-in to two further exploration wells on the Norwegian Continental Shelf, Oswig and Velocette, which had been negotiated bilaterally with OMV, the Austrian E&P company. The two wells are both targeting material gas resources in close proximity to Norwegian gas infrastructure. The first of these wells, Oswig, spud at the start of August and, as announced last week, a decision has been taken to drill a sidetrack well and perform a drill stem test. Extensive coring and logging data have been successfully acquired and the preliminary analysis of the data indicates excellent correlation with the nearby Tune field; likely presence of gas and condensate; and Gas In Place (GIIP) volumes in the Jurassic Tarbert reservoir higher than pre-drill expectations.

Oswig (Longboat 20%) consists of a high pressure, high temperature Jurassic rotated fault block nearby the Equinor operated producing Tune and Oseberg fields. Oswig had a pre-drill gross unrisked mean resource of 93 mmboe making it one of the larger gas prospects being tested in Norway this year. Several additional fault blocks have been identified on-block which could contain further gross unrisked mean resources of 80 mmboe which would be significantly derisked by a successful DST.

The Velocette prospect (Longboat 20%) is also operated by OMV and comprises Cretaceous Nise turbidite sands in the Norwegian Sea. This gas-condensate prospect is located within tie-back distance to the Aasta Hansteen gas field and has been estimated by the operator to contain gross unrisked mean resources of 130 mmboe (26mmboe net to Longboat). Last week we announced that a rig contract had been entered into for the Transocean Norge semi-sub with the well expected to spud in Q3 next year.

In October last year, we announced the Egyptian Vulture discovery (Longboat 15%) close to infrastructure on the Halten Terrace in the Norwegian Sea. The discovery is visible on seismic as a large amplitude anomaly which covers an area of more than 80 km2 and therefore has significant volume potential. Detailed technical studies are ongoing with particular focus on the seismic interpretation and the reservoir quality and distribution as, whilst expansive, it is a thin reservoir. The objectives are to reduce the risk and increase the understanding of the discovery as far as possible before making a final decision on a possible second well on Egyptian Vulture. As part of this work, ERCE has provided an independent assessment of the discovery in a Competent Person Report commissioned by Longboat, which has confirmed the size of the discovery at gross 4-68 mmboe.

Rødhette was discovered in October last year and is located within tie-back distance to the Goliath field in the Barents Sea. The discovery contains oil and gas resources between 9 and 12 mmboe (gross), which is not commercial as a standalone development, but could be tied-back for production as part of an area cluster development. The way forward for the asset therefore depends on the outcome of several third-party exploration wells, which are scheduled for drilling in the area before the end of this year. On the Ginny-Hermine, Cambozola and Copernicus licences work continues to establish the remaining prospectivity on the licences.

LONGBOAT ENERGY PLC

STRATEGIC REPORT (continued)

FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022

Strategy and markets

Longboat's strategy remains unchanged: to create significant value to shareholders by building a significant E&P business through value accretive M&A transactions and with the drill-bit.

In a situation where access to energy is becoming increasingly important and particularly gas in North West Europe, Norway plays a critical role as the country continues to offer attractive opportunities for E&P companies. Exploration results in Norway remain good and the country continues to offer high quality acreage in regular licensing rounds. According to the latest Resource Report by the Norwegian Petroleum Directorate, only half of total estimated resources of 100 billion boe have so far been produced and sold. Longboat, with its highly skilled G&G team and extensive industry network, is uniquely positioned to benefit from this continued opportunity as was recently demonstrated by the OMV farm-in deal.

Norway also continues to offer an attractive regulatory framework. A new Norwegian Petroleum Tax System has been introduced, which Longboat views as generally positive for the Company. The main elements of the new tax system are an unchanged marginal rate at 78%, a move to immediate expensing of investments, 71.8% repayment of all losses in the following year (compared to previously 72% of exploration losses only) with corporate tax at 6.2% carried forward against future profits. Longboat has worked with its lending banks and has successfully amended the 'Exploration Finance Facility' (EFF) to fit the new tax regime and will use its restructured EFF credit facilities to meet the working capital requirement for future exploration expenditure. The size and tenure of the facility remains the same as the original facility, NOK600 million and is available for drawing until 31 December 2023.

As part of Longboat's sustainability strategy, the Company has undertaken to be corporate 'Net Zero' on a Scope 1 and 2 basis by 2050. In this context, delivering exploration success with significant gas prospects near existing infrastructure will be crucial to reducing carbon intensity in order maximise the use of existing facilities and pipelines. We aim to make an important contribution to the energy transition and acknowledge the place that hydrocarbon exploration and production will continue to have in the global markets for the foreseeable future.

During 2022, Longboat has also continued to pursue production acquisition opportunities in the North Sea, which has not yet led to any production transactions. In the M&A market there have been multiple deals made involving production assets in the North Sea this year, however the recent spike in commodity prices following the Russian invasion of Ukraine has widened the gap between buyer and seller expectations. Almost all of the production transactions during the period have occurred in Norway, with the UK continuing to suffer from negative investor sentiment associated most recently with the 25% windfall levy imposed on UK producers in response to high domestic energy prices. The majority of deals in Norway continue to be struck by privately held companies. Longboat continues to be active in this market but is not willing to compromise on its requirement for transactions to be of high quality and value accretive.

Bearing in mind that the North Sea M&A market for production and development assets remains very competitive with a rather small number of opportunities to review, to make full use of our highly skilled team, the Company has recently also started to review opportunities in a few carefully selected countries outside of the North Sea. These are countries which offer attractive opportunities in supportive regulatory regimes as we continue to pursue in Norway.

Financial Results

The Company's gross cash position at 30 June 2022 was £22.5 million (30 June 2021: £38.7 million) with debt of

£15.7million (30 June 2021: nil) drawn under the EFF, resulting in a net cash position of £6.8 million. EFF drawings in the period will be repaid from the Norwegian Government's tax rebate, due in November 2023. The post-tax loss for the period was £1.7 million (30 June 2021: $0.9 million). During the period the Company had an active drilling campaign which included spudding Ginny & Hermine, Kveikje and Cambozola, spending £17.7 million on exploration drilling costs and £13.5 million on exploration carry costs. Operational performance has been good and the wells were drilled in line with the budget. In the period to 30 June 2022 there were no write offs of E&A costs despite drilling dry wells while evaluation work to establish remaining prospectivity on the licences is still ongoing. The carrying value of licences and evaluation work will again be reviewed at the year end.

Administrative expenses in the period were £2.4 million (30 June 2021: 1.5 million). Wages and salaries in the period

were £1.2 million (30 June 2021: 0.4 million) reflecting increased staffing costs post the farm-in deals.

LONGBOAT ENERGY PLC

STRATEGIC REPORT (continued)

FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2022

Going concern

The Directors have completed the going concern assessment, including a review of cash flow forecasts to December 2023, to assess whether the Group is a going concern. Following the announcement of a discovery at Oswig, the Oswig partnership has agreed to expand the scope of appraisal work which will now include a side track and drill stem test. This expanded work programme will require additional funding under the base case towards the end of the forecast period. Whilst the directors are confident that such funding will be available if required there can be no guarantee that this will be the case. These circumstances represent a material uncertainty that may cast significant doubt on the Company's ability to continue as a going concern. The financial statements do not include any adjustments that would result from the going concern basis of preparation being inappropriate.

Outlook

Our plan remains to build Longboat into a full-cycle E&P company. The very high commodity prices are making the M&A market challenging for both buyers and sellers, although more so for buyers. That aside, Longboat remains well- placed to transact. We have an experienced team with excellent relationships across the industry and we believe there are now many excellent opportunities for Longboat to pursue. However, patience will still be required given the commodity price levels and the competitive landscape.

On behalf of the board

Helge Ansgar Hammer

Director

23 September 2022