Lundin Norway, under the proprietorship of Lundin Petroleum, has entered into an agreement to secure complete Utsira High acreage position of Lime Petroleum. This acreage covers Goddo prospect in PL815 and Rolvsnes in PL338C.
The agreement allows Lundin Norway’s strong foothold of the fractured and weathered basement play on the Utsira High in the North Sea. Post the acquisition of the acreage, Lundin Norway’s working interest in Rolvsnes will rise to 80% from 50% and the company will enjoy a rise to 60% from 40% in the Goddo prospect. Lime Petroleum is currently operating under the proprietorship of Rex International Holdings.
Underlying Motive abaft this Acquisition
Lundin Petroleum is of an opinion that the acquisition will help them fortify their foothold in one of their core segments. Besides, this acquisition has also been made to leverage maximum out of this basement play, which stands out in Norway. Additionally, this acquisition will further boost commercialization with the Edvard Grieg platform. As per the agreement, Lundin Norway is subjected to pay $ 43 Mn to Lime Petroleum and an additional payment of $2 Mn.
The acquisition has not been made yet and is highly based on received government approvals on the same. Rolvsnes has a current approximate resource ranging between 14 – 78 Mn barrels of oil equivalents. Rolvsnes and Goddo collectively have a resource potential of approximately over 250MMboe. However, the companies haven’t yet disclosed the value of the acquisition.
About Lundin Norway
Lundin Norway was founded in the year 2003 and is headquartered at Lysaker, in Norway. The company is a full-fledged oil company that carries out exploration, drilling, development, and production activities. The primary focus of the company is to explore hydrocarbons. In mid-January, the company earned 15 exploration licenses, which includes 8 licenses in the North Sea, 5 licenses in the South Barents Sea, and 2 licenses in the Norwegian Sea.
About Lime Petroleum
Lime Petroleum operates under 90% ownership of Rex International Holding and 10% under the possession of Schroder and Co Banque SA. Rex International Holding is an independent oil exploration company, based in Singapore. Rex stands out amongst the companies of the world, owing to its bundle of technologies, which comprise Rex Seepage, Rex Gravity, and Rex Virtual Drilling. Schroder & Co Banque SA is an asset managing leader at a global level, with 28 offices operating in the Middle East, Asia, America, and Europe.