Lime Petroleum acquires 33.84% of producing Brage Field in Norway from Repsol
Updated: Apr 20
The transaction consideration of US$42.6 million includes deferred tax assets which are recoverable for Lime Petroleum
Production from the Brage Field of estimated 3,440 barrels of oil equivalent per day (net)will provide recurrent cash-flow to Lime Petroleum
Net2P Reserves of about 7.3 mmboe from the Brage Field will be added to Lime Petroleum’s current 2C Contingent Resources of 27.7mmboe
At the end of Brage Field’s production life, Lime Petroleum will pay an effective 1.69% of the total estimated decommissioning costs for the current Brage Field infrastructure
The effective date of the transaction will be 1 January 2021
OSLO, 16 June 2021 – Lime Petroleum AS (“LimePetroleum” or the “Company”) wishes to announce that it has on 15 June 2021, entered into a conditional sale and purchase agreement with Repsol Norge AS (“Repsol”), to acquire Repsol’s 33.8434 per cent interests in the oil, gas and natural gas liquids (NGL) producing Brage field, and the five licences on the Norwegian Continental Shelf over which the Brage field straddles (“Brage Field”),for a post-tax consideration of US$42.6 million (the “Acquisition”).
The transformational Acquisition of the Wintershall Dea-operated Brage Field fulfils Lime Petroleum’s ambition to transition from pure play exploration, to a full cycle exploration and production company on the Norwegian Continental Shelf, and to establish recurrent cash flow, as well as develop and drive further value in Lime Petroleum’s existing portfolio.
Brage is a field in the northern part of the North Sea, 10 kilometres east of the Oseberg Field. The water depth is 140 metres. Brage was discovered in 1980, and production started in 1993. In 2020, about 1.38 mmboe or 3,800 boepd were produced from the Brage Field, net to Repsol’s 33.8434 per cent working interest. Although the Brage Field has been producing for a long time, work is still ongoing to find new ways of increasing recovery from the field.
According to the Norwegian Petroleum Directorate, there are 3.42 million Sm3 of oil equivalent or 21.52mmboe of remaining reserves in the Brage Field. Accordingly, net2P Reserves of about 7.3 mmboe from the Brage Field will be added to Lime Petroleum’s current 2C Contingent Resources of 27.7mmboe. Lime Petroleum intends to commission a summary qualified person’s report on the Brage Field upon completion of the Acquisition.
The Company believes that the economics from the current production reserve base in the Brage Field are robust, and there is further upside from future in-fill drilling for production and exploration drilling of high value near-field prospects that are expected to add further production to the Brage Field.
Mr Lars Hübert, CEO of Lime Petroleum said, “We are delighted that Repsol has decided to divest the Brage Field to Lime Petroleum. The Brage Field will be transformational to the Company. It will not only provide stable cash-flow to Lime Petroleum but will complement our exploration and development projects on the Norwegian Continental Shelf, both in terms of cash flow and technical expertise. We intend to work closely with the Brage operator and partners to maximise the value of the asset, including the near-field exploration opportunities we see within the licences.”
Nordic independent investment bank ABG Sundal Collier ASA has been appointed as financial adviser for a contemplated 2.5-year senior secured bond issue of up to NOK 500 million (approximately US$60.05 million).
 Based on the latest available data on the Norwegian Petroleum Directorate website, the Brage Field produced 3,440 boepd (net) for March 2021.
 Repsol has agreed to pay to (or on behalf of) Lime Petroleum, the Brage Decommissioning Carry limited to 95 per cent of decommissioning costs for the current Brage Field infrastructure in respect ofits 33.8434 per cent interest in the Brage Field.
 Source: Norwegian Petroleum Directorate website –
Field: BRAGE - Factpages - NPD
 Rex’s press release,
Rex adds contingentresources with new Qualified Person’s Report on PL1125 Falk discovery in Norway
, 22 April 2021
This press release may contain projections and forward-looking statements that reflect the Company's current views with respect to future events and financial performance. These views are based on estimates and current assumptions which are subject to business, economic and competitive uncertainties and contingencies as well as various risks and these may change over time and in many cases are outside the control of the Company and its directors. Actual future performance, outcome and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends, cost of capital and capital availability, availability of real estate properties, competition from other companies and venues for the sale/distribution of goods and services, shifts in customer demands, customers and partners, changes in operating expenses, including employee wages, benefits and training, governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. No assurance can begiven that future events will occur, that projections will be achieved, or that the Company's assumptions are correct. The Company does not assume any responsibility to amend, modify or revise any forward-looking statements, on the basis of any subsequent developments, information or events, or otherwise. These statements can be recognised by the use of words such as "expects," "plans," "will," "estimates," "projects," or words of similar meaning. Such forward-looking statements are not guarantees of future performance and actual results may differ from those forecast and projected or in the forward-looking statements as a result of various factors and assumptions. Shareholders and investors are cautioned not to place undue reliance on these forward-looking statements, which are based on the current view of management of future events.
About Lime Petroleum AS
Established in 2012 in Oslo, Lime Petroleum is a 90 per cent subsidiary of Rex International Holding. 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. The company uses high-quality seismic data and Rex Virtual Drilling technology together with conventional seismic attributes and analysis of the petroleum systems in its exploration efforts. Lime Petroleum benefits from the Norwegian tax system with 78 per cent cash-back for exploration expenditures, which has been a huge success since introduced in2005, enabling a diversity of companies drilling sufficient number of wells to result in a string of significant discoveries in all provinces of the Norwegian Continental Shelf.
Issued by Lime Petroleum AS
Tel: +47 960 40 602