Lime Petroleum Acquires Repsol’s Brage Field Stake
Oslo-based Lime Petroleum AS has entered into a conditional Sale and Purchase Agreement (SPA) with a subsidiary of Spanish major Repsol SA, to acquire its 33.8434% non-operated interest in the Brage field in the North Sea, for a total consideration of US$42.6 million. The transaction also includes Repsol’s interests in the five licenses which the field straddles.
The total reported consideration of US$42.6 million includes certain deferred tax assets which are recoverable for Lime Petroleum. Under the terms of the deal, Lime Petroleum will pay an effective 1.69% of the total estimated decommissioning costs for the current Brage field infrastructure at the end of the field’s production life.
The Brage field is located within PL 053 B (Block 30/6), PL 055 (Block 31/4), PL 055 B (Block 31/4), PL 055 D (Block 31/4) and PL 185 (Block 31/7), situated around 10 km east of the Oseberg field in water depths of approximately 140 meters. Net to the acquired interest, total proved plus probable (2P) reserves are approximately 7.4 million barrels of oil equivalent (MMboe), with average daily production of approximately 3,400 barrels of oil equivalent per day (boe/d) during March 2021.
Upon completion, Wintershall Dea GmbH will hold a 35.2% operated interest in the field, with Lime Petroleum holding ~33.8%, DNO ASA holding ~14.3%, Vår Energi AS holding ~12.3%, and Neptune Energy Group with the remaining ~4.4%.
“We are delighted that Repsol has decided to divest the Brage Field to Lime Petroleum. The Brage Field will be transformational to the Company. It will not only provide stable cash-flow to Lime Petroleum but will complement our exploration and development projects on the Norwegian Continental Shelf, both in terms of cash flow and technical expertise. We intend to work closely with the Brage operator and partners to maximise the value of the asset, including the near-field exploration opportunities we see within the licences,” commented Lars Hubert, CEO of Lime Petroleum.
Lime Petroleum, a 90%-owned subsidiary of Rex International Holding Ltd., currently holds a portfolio of exploration licenses focusing on mature areas close to existing oil and gas infrastructure in the Norwegian Continental Shelf. Singapore-based Rex International owns a key set of proprietary and innovative exploration technologies, including Rex Virtual Drilling. In addition, Rex International also holds a portfolio of interests in E&P assets in the Oman and Norway.
The transaction is subject to customary closing conditions, with an effective date of January 1st, 2021.