· Participation in high-risk / high-reward exploration well
· Lime’s net cost to be partly defrayed by US$550,000raised from Rex’s option agreement with Trace Atlantic
· Brage acquisition expected to be completed in October2021
OSLO, 1 October 2021 –Lime Petroleum AS (“Lime”) is pleased to announce that the operator, PGNiG Upstream Norway AS (previously INEOS E&P Norge AS), has started drilling an exploration well in the Norwegian Sea licences PL937/B on 29 September 2021. Lime has 15 per cent interests in the licences. The well targets the Fat Canyon prospect, located in the well-known Jurassic reservoir. Lime has applied its rigorous evaluation process combining conventional geological and geophysical (G&G) workflow with Rex International Holding (“Rex”) Group’s proprietary Rex Virtual Drilling technology on this prospect.
While Lime is transforming into a full-fledged exploration and production company with its acquisition of a 33.84 per cent interest in the producing Brage Field that will add about 3,400 barrels of oil equivalent per day (net) to the Rex Group’s current oil production in Oman, Lime is also continuing with its exploration activities to unlock more potential value in its assets. The Fat Canyon prospect is a high-risk / high-reward opportunity. Rex, of which Lime is a subsidiary, has hedged the downside by US$550,000 raised from the options agreement signed with Trace Atlantic in 2020, making this an attractive proposition.
The licences PL937 and PL937B are located in Frøya High in the Norwegian Sea. The Borgland Dolphin semi-submersible drilling rig, which has been found by Rystad Energy to have the lowest CO2 emissions among the rigscurrently operating on the Norwegian Continental Shelf, will be used to drill the well about 15 kilometres south of 6406/12-4 S (Boomerang) on the Fenjafield. The water depth at the site is 241 metres, and the well should take at least 40 days to complete. In May 2021, Lime announced that it had conducted are view on the operator’s Health, Safety, Environment and Quality (HSEQ) management system and found it to have good HSEQ coverage, with no missing elements and no non-compliance to the relevant HSEQ regulations.
In June 2021, Lime announced its acquisition of a 33.84 per cent stake in Norway’s producing Brage Field. Output from the Brage Field of an estimated 3,440 barrels of oil equivalent per day (net) is expected to add another leg to the Group’s current oil production in Oman (approximately 11,772 barrels of oil per day (gross) between March and August 2021), with effect from 1 January 2021, upon completion of the acquisition, which is expected to be in October 2021.
PGNiG Upstream Norway AS’s acquisition of INEOS Energy’s oil and gas interests in production, licences, fields, facilities and pipelines on the Norwegian Continental Shelf was completed on 30 September 2021.
About Lime Petroleum AS
Lime Petroleum AS (“Lime”)was established in 2012 and is located in Oslo and is a subsidiary of Singapore-listed Rex International Holding Limited. The company was pre-qualified in February 2013 and has since built a portfolio of licences focusing on mature areas close to existing oil and gas infrastructure. The organisation has vast expertise in oil & gas exploration and production, both from Norway and internationally and uses high-quality seismic data and the unique Rex Virtual Drilling technology together with conventional seismic attributes and analysis of the petroleum systems in its exploration efforts. Lime benefits from the Norwegian tax system with 78 per cent cash-back for exploration expenditures.