Lime snaps up Repsol field stake off Norway
Junior explorer Lime Petroleum announced on June 16 it had acquired a 33.84% stake in the producing Brage oil and gas field off Norway from Spain's Repsol for $42.6mn.
The interest will net Lime 3,440 barrels of oil equivalent/day of production and 7.3mn boe in proven and probable reserves, the company said. The sales and purchase agreement will be backdated to January 1, 2021, it said, without disclosing when it expected closure.
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The Wintershall Dea-operated Brage field lies in the northern part of the North Sea, 10 km east of the Oseberg field, in waters 140 m deep. It was discovered in 1980 and has been in production since 1993.
Lime said the deal would be "transformational" for the company, transitioning it from a pure play exploration to a full cycle exploration and production company. While Brage is mature, Lime said the field's economics were robust and there was upside from future in-fill drilling as well as exploration drilling at nearby prospects.
Furthermore, Repsol has agreed to cover 95% of Lime's share of decommissioning costs when Brage is eventually closed.
"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," Lime CEO Lars Hubert said. "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."
Lime, owned by Singapore's Rex International, has 13 exploration licences off Norway, according to its website.