CFA Society Singapore
SINGAPORE (Jan 18): Rex International, the tech-driven oil exploration company, announced its 87.84% subsidiary, Lime Petroleum AS, has won a new offshore licence in Norway.
The licence is PL818B, an extension of the licence PL818, which is held by the same operating JV comprising Aker BP, Lime and Statoil.
Rex says the two North Sea licences have "significant exploration potential" with the principal prospect Orkja straddling between them.
A drill or drop decision for the combined licences is expected in summer 2018 with possible drilling in 2019.
In April 2017, Rex outlined a value creation strategy for its assets in Norway -- particularly in the North Sea -- to shareholders.
Development feasibility studies are being carried out on the Rolvsnes (previously Edvard Grieg South) discovery in licence PL338C made in December 2015, of which Lime holds a 30% stake. The group expects test production from Rolvsnes to start in 2020.
Måns Lidgren, CEO of Rex, says, “PL818B, like the Rolvsnes discovery, is located near to Johan Sverdrup, one of the five largest oil fields on the Norwegian continental shelf, and adjacent to the producing Edvard Grieg and Ivar Aasen fields."
In the North Sea, Lime also holds a 20% stake in licence PL815, where the undrilled Goddo prospect is believed to be a geological continuation of the Rolvsnes discovery.
Besides the four licences in the North Sea, Lime holds a 20% stake in licence PL841 in the Norwegian Sea, alongside operating JV which comprises Edison Oil, Statoil and the Norwegian government-owned Petoro.
Lime other licence in the Norwegian Sea is PL762, which covers the entirety of the Vagar prospect, is currently being evaluated using the group’s proprietary technology Rex Virtual Drilling.
Shares in Rex closed 0.3 cent lower at 6.4 cents on Thursday.