Lime Petroleum AS, a subsidiary of Rex International, has completed the acquisition of a 10 percent stake in the Yme offshore oil field in Norway from Kufpec for an after-tax consideration of $$68.053 million.
The completion, in agreement with KUFPEC, was concluded with an initial payment of US$55 million on December 23, 2022. Deferred payment of the balance, including settlement costs, will be made within 30 working days of completion.
As part of the settlement, ABG Sundal Collier ASA has been engaged to raise NOK 250 million (approximately US$25.5 million) from the tap mechanism in the bond set up in June 2022. The Tap will be raised during the month of January 2023, with ABG Sundal Collier ASA as underwriter.
After the Tap issue, the total bond will be NOK 1,200 million (approximately US$122.2 million).
Pursuant to the completion, which will have an effective date of January 1, 2022 (a standard practice for licence transactions in Norway), Lime Petroleum now holds a 10% interest in the Yme Field.
Lime said earlier this year that production from Repsol-operated Yme Field would contribute to its target of reaching production of 20,000 bpd across various geographies.
The Yme Field is located in PL 316 and PL 316B on the Norwegian Continental Shelf, in the south-eastern part of the Norwegian sector of the North Sea, 130 kilometers northeast of the Ula field. The water depth is 100 meters. The field comprises two separate main structures, Gamma and Beta, which are 12 kilometers apart. The reservoirs are in sandstone of Middle Jurassic age in the Sandnes Formation, at a depth of 3,150 meters.
According to the Norwegian Petroleum Directorate, remaining reserves in the Yme Field stand at 9.70 million Sm3 of oil equivalent i.e. there are remaining 2P Reserves of about 6.0 mmboe in the Yme Field net to Lime Petroleum.
Production from the field started in October 2021, via the jack-up drilling and production facility Mærsk Inspirer and a wellhead module.