Rex International Holding’s 91.65%-owned subsidiary, Lime Petroleum AS, has signed an agreement with MOL Norge AS to acquire the latter’s 40% interests in licences PL820 S and PL 820 SB in the North Sea on April 14.
The licenses come with the Iving and Evra discoveries and are located in the Utsira High area. The area is adjacent to the giant Vår Energy-operated Balder field, and just north of PL818 Orkja and PL867 Gjegnalunden in which Lime has 30% and 20% interests respectively.
According to Rex International, Lime has significant experience in the area from the exploration and appraisal drilling on the Rolvsnes discovery.
Dan Broström, executive chairman of Rex International Holding, says, “Lime’s latest acquisition continues the group’s efforts to build up our reserves and resources portfolio. In 2021, Lime added non-operated production from the Brage field to its portfolio, alongside non-operated field development projects.”
“Lime has been very active in these projects, and the next natural step is to seek operator status. The Iving and Evra discoveries will offer that possibility, subject to consent from the authorities and partners,” he adds.
Broström continues, “The Iving and Evra discoveries were made in 2019 and appraised in 2021. Hydrocarbons were encountered in five separate reservoir layers. The Norwegian Petroleum Directorate reports recoverable resources of 1.82 million Sm of oil equivalent or some 11.45 mmboe (or million barrel of oil equivalent).
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“Lime’s analysis, which also includes the use of the Rex Virtual Drilling seismic technology, suggests upside potential in the recoverable volumes of the two discoveries. In addition, the licence area includes several sizable exploration prospects. The licences are located adjacent to existing infrastructure, which is now being upgraded to extend the facilities’ lifespan.
“A tie-in of the PL820 S / PL 820 SB discoveries is in line with the Norwegian Petroleum Policy and Regulation, which encourages regional co-ordinated developments to maximise value creation. Alternatively, if larger volumes are encountered, a standalone field development based on conventional oil field technology may be considered,” he adds.
Lars Hübert, CEO of Lime said that the acquisition of interests in the licenses offered a “great opportunity” for Lime to step into the operator role. It will also help to boost its competitiveness for more opportunities and enhance its standing with licence partners and the authorities.
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“The Iving and Evra discoveries lie in a prolific part of the North Sea, with world-class producing assets nearby, as well as other recent discoveries. Lime will work to mature the Iving and Evra discoveries as well as the other prospects within the licence, hopefully resulting in further drilling within the licence in the next 18 to 24 months,” he adds.
Shares in Rex International closed at 35 cents on April 14.
