Lime Petroleum Norway to get stakes in two more licences from North Energy
SINGAPORE -- Rex International Holding reported that its jointly-controlled entity, Lime Petroleum Norway (Lime Norway) has signed an agreement with North Energy to acquire 5% stakes in two additional licenses in Norway, PL591 and PL591B.
The transfer of the 5% stakes is pending regulatory approval. Both licenses, operated by Tullow Oil Norge, have been assessed using Rex Virtual Drilling. Exploration drilling in the licenses is expected to commence in the first half of 2015.
Mans Lidgren, CEO of Rex International Holding, said, “Rex Virtual Drilling has detected promising prospects in these two licenses and we have also validated the findings with geological datasets. Although small, we are keen to take on the 5% stakes in these licenses as drilling will start as early as the first half of next year.”
Both licenses are located in the Halten area of the Norwegian Sea in water depth of some 300 m. PL591 contains the Zumba Prospect with Upper Jurassic Rogn Fm sands as reservoir. According to North Energy in their 1Q 2014 results presentation dated May 14, 2014, the prospect has a gross mean unrisked potential of 184 MMboe at an estimated conventional probability of success of 43% and a net mean risked of 16 MMboe to North Energy.
Rex International Holding and its jointly controlled entities, including Lime Petroleum and HIREX Petroleum, hold exclusive rights to the direct hydrocarbon indicator, Rex Virtual Drilling. By virtue of Rex Virtual Drilling, Lime Norway had been accorded Pre-qualified Petroleum Company status in Norway in February 2013, allowing it to apply for a cash tax refund of 78% of exploration costs annually.
With capital injections totalling $23 million made by the shareholders of Lime Petroleum in November 2013 and January 2014, as well as with the $49.99 million (NOK 300 million) financing facility secured from Skandinaviska Enskilda Banken, Lime Norway has adequate financing to fulfil its work commitments for at least the next one year.
Rex International Holding also has a 5.35% interest in North Energy, which holds stakes in all but one license (PL 498B) in Lime Norway’s portfolio, on top of 17 other licenses in Norway (including PL591 and PL591B).
Rex International Holding’s general investment criteria for offshore concessions is a potential of about 50 MMbbl of oil in each concession.