Lundin Petroleum has entered into an agreement with Lime Petroleum, a subsidiary of Rex International Holding, to buy its stakes in the Rolvsnes discovery and Goddo prospect on the Utsira High off Norway.
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).
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 per cent and the Goddo prospect in PL815 from 40 to 60 per cent.
The deal, which is effective from January 2019, involves a cash consideration to Lime Petroleum of US$43 million.
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 said: “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.”