Lime Petroleum in 30 Per Cent Farm-in to Two Licences in Norwegian Sea

Source Press Release
Company Rex International Holding LimitedDEA Deutsche Erdoel AGLime Petroleum 
Tags Asset Deals, Deals, Upstream Activities
Date June 24, 2019

 First farm-in after monetisation of discovery asset in North Sea

 Exploration drilling expected in Q4 2019

 Prospects identified have good Rex Virtual Drilling and AVO indications and is supported by conventional geological analysis

Rex International Holding Limited (“Rex International Holding”, “Rex” or the “Company”, and together with its subsidiaries, the “Group”), a technology-driven oil company, is pleased to announce that its 90 per cent subsidiary  Lime Petroleum AS (“LPA”) has on 21 June 2019, signed an agreement with DEA Norge (“DEA”) to acquire 30 per cent interests in each of the licences PL838 and PL838B in the Norwegian Sea. The transfer of the interests is pending regulatory approval, which will be announced upon completion of the transfer of the interests. Exploration drilling on the licences is expected in Q4 2019, with the planned well targeting multiple prospective horizons which the Group believes to have positive assessments from Rex Virtual Drilling, amplitude versus offset (AVO) and geological & geophysical analyses.

Mr Dan Broström, Executive Chairman of Rex International Holding, said, “The recent completion of LPA’s divestment of some of its assets, including the Rolvsnes discovery, is the first fruition of our initial business model to find oil, monetise and recycle capital. We are optimistic that this farm-in by LPA will be a repeat of our success in Rolvsnes, making this business model a successful one for our operations in Norway.”

Mr Måns Lidgren, Chief Executive Officer of Rex International Holding, said, “We are pleased to seize this farm-in opportunity, especially when our proprietary de-risking tool Rex Virtual Drilling has detected a promising prospect in the well that is slated to be drilled soon.”

The licences PL838 and PL838B are located in the prolific Donna Terrace area of the Norwegian Sea in water depth of some 350 metres. PL838 contains the Shrek prospect with the main target in the Middle Jurassic Garn Formation, a high quality oil reservoir at a depth of approximately 2,000 metres. Additional prospective layers are identified in the above-lying Cenozoic section. The operator PGNiG has a 40 per cent interest, while AkerBP holds the remaining 30 per cent interest in the licences. The Shrek exploration well is anticipated to be spudded in the beginning of October 2019 and will take some 24 days to drill.

Mr Lars Hübert, Chief Executive Officer of LPA, said, “The farm-in is consistent with our technologyand infrastructure-led value creation strategy. The prospect is located some 4km from the AkerBP operated Skarv field and can be tied back to the Skarv facilities in the event of a discovery.”

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd