Rex International Holding Limited (“Rex International Holding”, “Rex” or the “Company”, and together with its subsidiaries, the “Group”), a technology-driven oil company, wishes to announce that its 91.65 per cent subsidiary Lime Petroleum AS (“Lime”) has on 30 June 2022, signed an agreement with Vår Energi to farm down by 10 per cent, Lime’s 40 per cent interests in licences PL820 S and PL 820 SB in the North Sea.
Lime had on 14 April 2022, signed an agreement to acquire MOL Norge AS’s 40 per cent interests in the said licences. The transfers of the interests are pending regulatory approval and corporate approval from Vår Energi, and will be announced upon completion. Lime will hold 30 per cent interests in the two licences when the transfers of interests are completed.
Mr Lars Hübert, Chief Executive Officer of Lime, said, “Lime welcomes Vår Energi into the two licences, which contain the Iving and Evra discoveries. These two discoveries lie in a prolific part of the North Sea, with world-class producing assets nearby, as well as other recent discoveries. We look forward to working synergistically with Vår Energi, drawing on their vast experience in the area. Lime will work with its partners to mature the Iving and Evra discoveries as well as the other prospects within the licences, hopefully resulting in further drilling within the licences in the next 18 to 24 months. The farm-down is part of our strategy to have balanced holdings in our portfolio of assets.”
The PL820 S and PL820 SB licences with the Iving and Evra discoveries, lie on the Utsira High area adjacent to the giant Vår Energi-operated Balder field, and just north of PL818 Orkja and PL867 Gjegnalunden, in which Lime has 30 per cent and 20 per cent interests respectively.
The Iving and Evra discoveries were made in 2019 and appraised in 2021. Hydrocarbons were encountered in five separate reservoir layers. The Norwegian Petroleum Directorate reports recoverable resources of 1.82 million Sm3 of oil equivalent or some 11.45 mmboe*. Lime’s analysis,
which also includes the use of the Rex Virtual Drilling seismic technology, suggests upside potential in the recoverable volumes of the two discoveries. In addition, the licence area includes several sizable exploration prospects. The licences are located adjacent to existing infrastructure, which is now being upgraded to extend the facilities’ lifespan. A tie-in of the PL820 S / PL 820 SB discoveries is in line with
the Norwegian Petroleum Policy and Regulation, which encourages regional co-ordinated developments to maximise value creation. Alternatively, if larger volumes are encountered, a standalone field development based on conventional oil field technology may be considered.