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Friday, December 6, 2013

Rex International unit to acquire 20% stake in new licence in Norway


Rex International Holding says its 65% indirectly owned jointly controlled entity, Lime Petroleum Norway AS, has on Dec 3, signed an additional agreement with North Energy ASA to acquire a 20% stake in a new licence in Norway, PL509.

PL509 contains oil prospects in areas totalling some 977 square kilometres which are located in the North Sea, south of the Gullfaks area and about 150 kilometres west of Bergen in Norway on the Norwegian Continental Shelf. A potential discovery could be tied back to existing nearby infrastructure.

Dan Broström, Executive Chairman of Rex International Holding, said, “PL509 has been reviewed using Rex Virtual Drilling and we are very excited about the prospects there. The licence holders will make a decision whether to drill an exploration well in the licence by mid-2014. We anticipate that Lime will be able to grow its portfolio up to 15 licences in 2014, through farm-ins and when the annual Awards in Predefined Areas (APA) in mature parts of the NCS are announced by the Norwegian Ministry of Petroleum and Energy, expectedly in late January 2014.”

On Nov 29, Lime signed a NOK 300 million ($61.6 million) credit facility with Skandinaviska Enskilda Banken AB (SEB), a leading Nordic corporate bank. Lime’s shareholders, including Rex International Holding, have to-date already injected almost NOK 100 million ($20.5
million) of equity into Lime and intend to inject another NOK 100 million in January 2014. Together, these funds will fully finance Lime’s activities into 2015, including its participation in the drilling of at least two exploration wells in its various concessions. It is to be noted that under the Norwegian Petroleum Tax Act, all exploration costs to petroleum-related activities on the NCS may be expensed and the state will make a cash refund of the tax value i.e. 78% of the exploration costs.

With the acquisition of a stake in PL509, Rex International Holding’s portfolio of licences in Norway will increase to seven, up from the initial four at its initial public offering (IPO) on 31 July 2013. Rex International Holding has since its IPO four months ago, grown its portfolio from 10 licences to 16, extending also its geographical footprint from Norway, the Middle East and the USA to include Trinidad & Tobago.

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