Rex Subsidiary Lime Petroleum to Acquire 4 MMboe Net Contingent Resources in  Brasse Field, Norway

Source Press Release
Company Rex International Holding LimitedDNO ASAOKEA ASA 
Tags Asset Deals, Deals, Upstream Activities
Date November 07, 2023

• Lime will acquire 10.7212 per cent interest from DNO Norge AS and 6.2788 per cent interest from Operator OKEA ASA, totalling 17 per cent in PL740 in the Norwegian North Sea

• Final Investment Decision for the Brasse Field in PL740 is expected in the first quarter of 2024, with start of commercial production expected in 2027

• The Farm-in is conditional on customary governmental approvals

• Lime expects that completion will take place in end-2023, or early-2024

Rex International Holding Limited (“Rex International Holding”, “Rex” or the “Company”, and together with its subsidiaries, the “Group”), a technology-driven oil exploration and production company, wishes to announce that its 91.65 per cent subsidiary  Lime Petroleum AS (“Lime”), has on 6 November 2023, entered into sale and purchase agreements with DNO Norge AS (“DNO”) and  OKEA ASA (“OKEA”), to acquire 10.7212 per cent and 6.2788 per cent interests respectively in PL740 in the Norwegian North Sea, in which the Brasse Field is expected to start commercial production in 2027 (the “Farm-in”). The Operator, OKEA, reports recoverable resources in Brasse to be 21 to 29 mmboe (3.39 million cubic metres to 4.58 million cubic metres1 ) in the recently published environmental impact study for the field, of which 25 to 30 per cent is gas. The Farm-in of a total 17 per cent interest in PL740 will accordingly result in some 4 mmboe of contingent resources net to Lime. The Farm-in is conditional on customary governmental approvals and Lime expects that completion will take place in end-2023, or early-2024.

The licence with the Brasse Field is operated by OKEA. OKEA and DNO currently hold 45.5576 per cent and 50 per cent in the licence respectively. M Vest Energy AS holds the remaining 4.4424 per cent interest in the licence2 .

1 OKEA, Environment Impact Assessment of Brasse, page 20, 20 October 2023

Norwegian Petroleum Directorate website, Fact pages, PL740 mmboe: millions of barrels of oil equivalent

The Brasse Field is located in shallow water on the Norwegian Continental Shelf just south of the Brage Field. Lime holds a 33.8434 per cent interest in the Brage Field. According to the Norwegian Petroleum Directorate (NPD), Brasse was discovered in 2016, and appraised in 2016, 2017 and 2018, with a water depth of around 407 feet3 . The partnership has agreed on a fast-track development, as a subsea tie-back to the Brage platform some 13 km away. A Plan for Development and Operation (PDO) is expected to be submitted to Norwegian authorities in early 2024. Production start-up is possible in early 2027.

Mr Lars Hübert, Chief Executive Officer of Lime, said, “The Farm-in is a further extension of Lime’s strategy to build value in the company by adding reserves and production, following our acquisitions of interests in the producing Brage and Yme fields in 2021 and 2022 respectively. Through our participation in the Brage Field, we know the area very well. The Brasse Field development will have significant positive synergies with Brage, likely allowing the extension of Brage Field’s lifespan, adding to our cash-flow stream in the long-term. We look forward to working closely with the Operator, OKEA, and the other partners in the field in the months and years to come.”

Norwegian Petroleum Directorate website, Brasse Field

Source: EvaluateEnergy® ©2024 EvaluateEnergy Ltd