Rex International Holding Ltd. has announced that its jointly-controlled entity, Lime Petroleum Norway, signed an agreement with EnQuest Norge to acquire their 50% stake in licenses PL760 and PL760B in the Norwegian Sea. Following the transaction, the partners in the license will be Total E&P Norge AS (operator) at 50% and Lime Norway at 50%.
The licenses are located some 25km west of the Norne oil/gas field in the Norwegian Sea in water depths of 370m. Both PL760 and PL760B target similar Cretaceous reservoirs from which the adjacent Marulk gas field is producing. Further, the deep water Aasta Hansteen gas/condensate field to the north is under development, including the Polarled gas pipeline to shore passing close to PL760. The exploration potential is considerable and supported by an initial Rex Virtual Drilling seismic survey. A drill-or-drop decision is expected to be taken in February 2016, following which drilling could take place in 2016 or 2017.
With a reputable operator, the proximity of the prospect to existing infrastructure and producing oil and gas fields, as well as positive indications from initial Rex Virtual Drilling analysis, the licenses make for attractive additions to Lime Norway’s exploration pipeline. Should a drill decision be made in February 2016, an in-depth Rex Virtual Drilling survey in connection with the planning of the final well location is expected to be done when final estimations of porosity and permeability become available.
Lime Norway was accorded pre-qualified petroleum company status in Norway in February 2013, allowing it to receive a cash tax refund of 78% of exploration costs annually. Capital injections totaling US$35 million have been made by the shareholders of Lime Petroleum in November 2013, January 2014 and March 2015. An enlarged $84.6 million (NOK$700 million) financing facility has also been secured from Skandinaviska Enskilda Banken AB. Lime Norway is a wholly-owned subsidiary of Lime Petroleum. Lime Petroleum is a jointly-controlled entity in which the company holds a 65% indirect stake.
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