Lundin Petroleum AB has announced that its wholly owned subsidiary Lundin Norway AS has entered into an agreement with Lime Petroleum AS a subsidiary of Rex International Holding Limited, to acquire its entire Utsira High acreage position covering the Rolvsnes and Goddo basement area.
The acquisition takes Lundin Norway’s working interest in the Rolvsnes oil discovery in PL338C and in the recently awarded, adjacent licence PL338E1 from 50% to 80% and the Goddo prospect in PL815 from 40% to 60%. This will consolidate the Company’s position in the proven weathered and fractured basement play on the Utsira High, close to the Edvard Grieg facilities. The transaction, which is effective from January 2019, involves a cash consideration to Lime Petroleum of USD 43 million and a contingent payment of a further USD 2 million, with completion subject to customary government approvals.
Rolvsnes is located 3 km south of the Lundin Norway operated Edvard Grieg platform on the Utsira High and has a gross estimated resource range of between 14 and 78 million barrels of oil equivalent (MMboe). Following the successful appraisal well and production test in 2018, an extended well test (EWT) is expected to be conducted at Rolvsnes in 2021 to better understand the long-term reservoir behaviour. The production test in 2018 further de-risked the on trend Goddo basement prospect in adjacent PL815, on which an exploration well will be drilled in 2019. The combined gross resource potential of the Rolvsnes and Goddo area is more than 250 MMboe.
Alex Schneiter, CEO and President of Lundin Petroleum comments, “I am very pleased to announce the acquisition of Lime Petroleum’s working interests in Rolvsnes and Goddo, which not only further consolidates our position in one of our core areas, but also offers the opportunity to further benefit from the significant potential in this successfully tested basement play, which is unique on the Norwegian Continental shelf. This acquisition also provides further commercial alignment with Edvard Grieg, as we focus on using high-margin, tie-back developments to extend plateau production through the facilities beyond the current mid-2020 guidance.”