Acquisition enables the Rex subsidiary to become a full cycle exploration and production company on the NCS

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The Brage field has been producing since 1993. (Credit: Keri Jackson from Pixabay)

Lime Petroleum has acquired Repsol Norge’s stake of 33.84% in the producing Brage field and its five associated licences in the Norwegian Continental Shelf (NCS) for $42.6m.

The parties have signed a conditional and purchase agreement in this regard.

Lime Petroleum, which is a 90% subsidiary of Rex International, will become a full cycle exploration and production company on the NCS following the acquisition.

Rex International executive chairman Dan Broström said: “We are pleased that Repsol has chosen Lime Petroleum to acquire its quality assets in the oil prolific Norwegian Continental Shelf following a robust bidding exercise.

“Not only does it transform Lime Petroleum from being solely an exploration company to being an exploration and production company starting from 1 January 2021, it also gives the Group a second production field following our success in Oman and adds to the Group’s reserves and contingent resources.”

Operated by Wintershall, the Brage field located in the northern part of the North Sea, has been in production since 1993. It is located 10km east of the Oseberg Field, and is contained in a water depth of 140m.

The field was discovered in 1980.

Last year, the net production for Repsol from the Brage oil field was around 1.38 million barrels of oil equivalent (mmboe) or 3,800 barrels of oil equivalent per day (boepd).

As per the Norwegian Petroleum Directorate, the field contains 3.42 million Sm3 of oil equivalent or 21.52mmboe of remaining reserves. Lime Petroleum’s share of this will be around 7.3mmboe, which will add to the company’s existing 2C contingent resources of 27.7mmboe.

Rex International said that the economics from the present production reserve base in the Brage field are strong.

Besides, there is further upside that can be realised through future in-fill drilling for production and exploration drilling of high value near-field prospects to increase the field’s production, said the company.

Broström said: “The Acquisition is also in line with the Group’s strategies to increase production now when the oil price is over US$70 and to get a second production unit to minimise production risk.”

Lime Petroleum’s partners in the Brage field are Wintershall Dea Norge (35.2%), DNO Norge (14.2%), Vår Energi (12.2%), and Neptune Energy Norge (4.4%).