Climate Change Data

Longboat Energy plc

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:4,023 tonnes GHG (CO2, CO, N2O, nm VOC, NOX and SOX)
Scope 1 Emissions:3,976 tonnes CO2
Scope 2 Emissions:37.9 tonnes CO2 (estimated)
Water Consumption:Kveikje: 3650 tonnes, Cambozola: 5000 tonnes, Ginny/Hermine: 2000 tonnes

ESG Focus Areas

  • Greenhouse gas emissions
  • Environmental stewardship
  • Energy transition
  • Safety
  • Community relations
  • Human rights
  • Anti-corruption

Environmental Achievements

  • Drilled five exploration wells with a focus on gas prospects near existing infrastructure to minimize carbon intensity.
  • Aimed to be net zero by 2050 with an earlier target date to be set dependent on the profile of the asset base.

Social Achievements

  • Commitment to equal opportunities and a workplace free of discrimination.
  • Intention to identify impactful community programs for funding as part of a longer-term corporate social investment strategy.

Governance Achievements

  • Adoption of the Quoted Companies Alliance (QCA) Corporate Governance Code.
  • Establishment of Audit, Remuneration, Nomination, and Disclosure Committees.
  • Implementation of policies on anti-bribery and corruption, anti-facilitation of tax evasion, human rights, modern slavery, and whistleblowing.

Climate Goals & Targets

Long-term Goals:
  • Building a full-cycle E&P company.
Medium-term Goals:
  • Securing follow-up acquisitions that meet investment criteria (including near-term cash flow).
  • Building a sustainable business that attracts capital.
  • Achieving net zero emissions by 2050 or earlier.
Short-term Goals:
  • Monetization and conversion of exploration assets into reserves, production, and cash.

Environmental Challenges

  • Materiality of acquisitions relative to market capitalization.
  • Going concern due to reliance on existing cash resources and potential asset disposals.
  • Exploration and drilling risks.
  • Governmental actions impacting oil and gas pricing, exploration, and taxation.
  • Availability of debt finance.
  • Access to capital in an increasingly hostile environment.
  • Volatility of commodity prices.
  • Significant competition for acquisition opportunities.
  • Reliance on key personnel.
  • Dilution of shareholders' interest.
  • Functioning M&A market.
  • Foreign exchange rate volatility.
Mitigation Strategies
  • Multi-well program with diverse technical and commercial risks.
  • Operational drilling and HSE risks managed through dedicated personnel and a Business Management System.
  • Insurance coverage.
  • Operating in jurisdictions with sophisticated tax authorities.
  • Strong banking relationships and exploration of alternative debt finance sources.
  • Investing in and acquiring assets that meet environmental and emissions criteria.
  • Hedging arrangements (short-term).
  • Targeting assets where specific knowledge or preferred partnership exists.
  • Competitive remuneration and retention packages.
  • Arrangements for shareholder participation in share placing (where possible).
  • Pursuing acquisition strategy despite market volatility.
  • Currency conversion strategies.

Supply Chain Management

Responsible Procurement
  • High standards of behaviour and conduct demanded of all agents, co-ventures, contractors, suppliers, and third parties.

Climate-Related Risks & Opportunities

Transition Risks
  • Increased pressure to reduce GHG emissions.
Opportunities
  • Delivering low carbon footprint energy through gas focused portfolio.

Reporting Standards

Frameworks Used: SASB

UN Sustainable Development Goals

  • SDG 7
  • SDG 5
  • SDG 12
  • SDG 13
  • SDG 14

Minimizing impacts and maximizing benefits of activities.

Awards & Recognition

  • Norwegian Explorer of the Year Award (2022)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:797.3 tonnes GHG (CO2, CO, N2O, nmVOC, NOx and SOx)
Scope 1 Emissions:797.3 tonnes GHG

ESG Focus Areas

  • Greenhouse gas emissions
  • Environmental stewardship
  • Community relations
  • Workforce health & safety
  • Business ethics & transparency
  • Management of the legal & regulatory environment
  • Critical incident risk management

Environmental Achievements

  • Reports equity share of Scope 1 emissions from exploration drilling, in line with SASB standards.
  • Target of zero acute discharges to sea. No spills in 2023.

Social Achievements

  • Equal opportunities employer.
  • Intends to identify impactful community programmes to be funded as part of the longer-term corporate social investment strategy.

Governance Achievements

  • Adopted the Quoted Companies Alliance (QCA) Corporate Governance Code.
  • Established Audit, Remuneration, Nomination and Disclosure committees.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (earlier target date to be set).
Medium-term Goals:
  • Net zero emissions by 2050 (earlier target date to be set).

Environmental Challenges

  • Materiality – modest market capitalization makes any new acquisition very material.
  • Going Concern – no source of income, reliant on existing cash resources.
  • Developments – programmes exposed to risk of delays and cost overruns.
  • Competition for acquisition opportunities.
  • Reliance on key personnel.
  • Dilution of shareholders’ interest as a result of additional equity financing.
  • Volatility of commodity prices.
  • Foreign Exchange Rate Volatility.
Mitigation Strategies
  • Multi-well programme managed through HSE personnel, BMS, and third parties.
  • Insurance to cover exposure up to industry limits.
  • Strong banking relationships and alternative sources of debt finance.
  • Invest in assets that meet environmental and emissions criteria.
  • Hedging arrangements (short-term).
  • Targeting assets where specific knowledge or preferred partner status exists.
  • Competitive remuneration and retention packages.
  • Arrangements for all shareholders to participate in any share placing via an open offer (where possible).
  • Converting cash to meet budgeted currency exposure as and when exchange rates are favorable.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

UN Sustainable Development Goals

  • SDG 7
  • SDG 5
  • SDG 12
  • SDG 13
  • SDG 14

Minimising impacts and maximising benefits of activities.