News post

Start of drilling well 16/4-10 on the Fosen prospect in PL544

Lime Petroleum Norway AS(“LimeNorway”) wishes to announce that the drilling of exploration well16/4-10 on the Fosen prospect in North Sea licence PL544 has started.

Operator Lundin Norway AS (“Lundin”) started drilling the well on 24 January 2016 using the semi-submersible rig Island Innovator in a water depth of 94 metres. The drilling is scheduled to take 50 days with a total depth of about 2,600 metres. The location is on the prolific Utsira High, some 25 km south of the Rolvsnes discovery announced by Lime Norway on 23December 2015 and 30 km south of the Lundin operated Edvard Grieg production platform.

The Fosen prospect has Upper Jurassic sandstones as reservoir target with gross unrisked exploration resources of 192 million barrel oil equivalents and a geological chance of success of 22 percent(source: Lundin corporate presentation, 8 January 2016). The liquid hydrocarbon indicator Rex Virtual Drilling (“RVD”) shows good correlation with the prospect.

The drilling of all wells carries geo-technical risks and uncertainties. For the Fosen prospect, the absence of an effective seal of the reservoir to trap the hydrocarbons is considered the major risk.

PL544 is held by operator Lundin at 40 percent, Lime Norway at 30 per cent and Wellesley Petroleum at 30 per cent. The licence further contains a small gas/condensate discovery in Paleocene aged sandstones.

Lime Norway also has a participating interest of 30 per cent in the nearby licences PL410 and PL338C with the Rolvsnes (Edvard Grieg South) discovery. Further, Lime Norway is in the process of being awarded, amongst others, 20 percent in PL815 in the APA2015 licensing round.