REX International' s 90 per cent-owned subsidiary, Lime Petroleum, will acquire Repsol Norge' s 33.8 per cent interest in the oil, gas and natural gas liquids-producing Brage field in Norway.

 

In addition, Lime Petroleum will buy the five licences on the Norwegian continental shelf over which the field straddles.

 

Lime Petroleum will pay a post-tax price of US$42.6 million in total, under a conditional sale and purchase agreement with oil and gas company Repsol, said Rex in a filing on Wednesday night.

 

This fulfils Lime Petroleum' s ambition to transition from pure-play exploration, to a full-cycle exploration and production company.

 

The deal will also establish recurring cash flow, as well as develop and drive further value in Lime Petroleum' s existing portfolio, Rex said.

 

It added that it believes the economics from the current production reserve based in the field are " robust" . Rex expects further upside from future in-fill drilling for production and exploration drilling of high-value near-field prospects.

 

Brage is located in the northern part of the North Sea, and production started in 1993. " Although the Brage field has been producing for a long time, work is still ongoing to find new ways of increasing recovery," Rex noted.

 

Lime Petroleum plans to commission a summary qualified person' s report on the field, when the acquisition is completed.

 

The deal is in line with Rex' s strategies to increase production now - with the oil price surpassing US$70 per barrel - and to get a second production unit to minimise production risk, said Rex executive chairman Dan Broströ m.

REX International' s 90 per cent-owned subsidiary, Lime Petroleum, will acquire Repsol Norge' s 33.8 per cent interest in the oil, gas and natural gas liquids-producing Brage field in Norway.

 

In addition, Lime Petroleum will buy the five licences on the Norwegian continental shelf over which the field straddles.

 

Lime Petroleum will pay a post-tax price of US$42.6 million in total, under a conditional sale and purchase agreement with oil and gas company Repsol, said Rex in a filing on Wednesday night.

 

This fulfils Lime Petroleum' s ambition to transition from pure-play exploration, to a full-cycle exploration and production company.

 

The deal will also establish recurring cash flow, as well as develop and drive further value in Lime Petroleum' s existing portfolio, Rex said.

 

It added that it believes the economics from the current production reserve based in the field are " robust" . Rex expects further upside from future in-fill drilling for production and exploration drilling of high-value near-field prospects.

 

Brage is located in the northern part of the North Sea, and production started in 1993. " Although the Brage field has been producing for a long time, work is still ongoing to find new ways of increasing recovery," Rex noted.

 

Lime Petroleum plans to commission a summary qualified person' s report on the field, when the acquisition is completed.

 

The deal is in line with Rex' s strategies to increase production now - with the oil price surpassing US$70 per barrel - and to get a second production unit to minimise production risk, said Rex executive chairman Dan Broströ m.