Lime Petroleum AS in Norwegian Sea licence swap
20 per cent interests in PL263D/E/F Sierra (previously known as Apollonia) to be swapped with 13.3 per cent interest in well-defined PL433 Fogelberg discovery
Field development with production start-up possible in 2025
Significant addition of 6.5 mmboe contingent resources net to Lime’s portfolio
OSLO, 7 April 2021 – Lime Petroleum AS (“Lime”) has on 6 April 2021,signed an agreement with ONE-Dyas Norge AS (“ONE-Dyas”)to swap its 20 per cent interests in each of the licences PL263D, PL263E, and PL263F Sierra (previously known as Apollonia) in the Norwegian Sea for ONE-Dyas’ 13.3 per cent interest in PL433 Fogelberg. Lime has agreed to pay ONE-Dyas a contingent cash consideration, which is related to the Plan for Development and Operations (PDO). The transfer of the interests is pending regulatory approval. An announcement will be made upon completion of the transfer of the interests.
The licences PL263D, PL263E, and PL263F Sierra are located on the Halten Terrace in the Norwegian Sea. Lime participated in the drilling of the Apollonia well in the fall of 2020, which resulted in the Sierra South gas discovery in Cretaceous Lange Formation sandstones. The Norwegian Petroleum Directorate (NPD) reports that the discovery is estimated to contain some 5 mmboe gas in reserve-class 7F (Production Not Evaluated). In addition, significant prospective resources have been identified. Equinor is the operator of the licences, and Pandion Energy AS and ONE-Dyasare partner companies.
The PL433 licence is located on the Halten Terrace, just north of the large Åsgard field. The licence contains the Fogelberg discovery, which as reported by the NPD, is estimated to contain 49 mmboe gas/condensate in reserve-class 4F (Production in Clarification Phase). The discovery is well-defined with three wells and a production test, in addition to high quality 3D seismic. The reservoir is in the prolific Jurassic Garn Formation,which is producing from the nearby Åsgard field. The PL433 partnership is moving the discovery towards production with the submission of a PDO likely in end-2022, and production start-up potentially in 2025. The licence is operated by Spirit Energy Norway AS, with partner companies PGNiG Upstream Norway AS and DNO Norge AS.
Mr Lars Hübert, Chief Executive Officer of Lime, said, “The Halten Terrace continues to gain importance to LPA, as we move the company closer to production. The swap with ONE-Dyas enables us to get into production sooner and reduce exploration risk. Development work on Fogelberg will run in parallel with the PL838 Shrek and PL1125 Falk/Linerle developments, which the company is also working on.”
Lime will work closely with the operator and partners on the licence to bring the Fogelberg discovery into production. Furthermore, Lime will continue to actively utilise the Rex Virtual Drilling technology for further evaluation of the licence area.
mmboe: million barrels of oil equivalent
Lime was established in 2012 and is located in Oslo. 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 benefits from the Norwegian tax system with 78 per cent cash-back for exploration expenditures, which has been a huge success since introduced in 2005, 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.