Lundin Petroleum AB acquired further interests in Norwegian Continental Shelf licenses as the Sweden-based E&P works to consolidate one of its core positions in the region.
The company said Jan. 28 its subsidiary Lundin Norway AS entered an agreement with Lime Petroleum AS to acquire Lime Petroleum’s entire Utsira High acreage position covering the Rolvsnes and Goddo basement area for roughly US$45 million.
The acquisition takes Lundin Norway’s working interest in the Rolvsnes oil discovery in PL338C and in the recently awarded, adjacent license PL338E1 to 80% from 50% and the Goddo prospect in PL815 to 60% from 40%.
Alex Schneiter, CEO and president of Lundin Petroleum, said the acquisition will consolidate Lundin’s position in the proven weathered and fractured basement play on the Utsira High, which is close to the Edvard Grieg facilities.
“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,” Schneiter said in a statement. “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.”
The combined gross resource potential of the Rolvsnes and Goddo area is more than 250 million barrels of oil equivalent (boe), according to the Lundin press release.
Rolvsnes is located 3 km (1.86 miles) south of the Lundin Norway-operated Edvard Grieg platform on the Utsira High and has a gross estimated resource range of between 14 million and 78 million boe.
Following the successful appraisal well and production test in 2018, an extended well test is expected to be conducted at Rolvsnes in 2021 to better understand the long-term reservoir behavior. 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 agreement with Lime Petroleum, which is a subsidiary of Rex International Holding Ltd., includes a cash payment of US$43 million plus a contingent payment of a further US$2 million. The transaction is effective from January.
Recommended Reading
Wayangankar: Golden Era for US Natural Gas Storage – Version 2.0
2024-04-19 - While the current resurgence in gas storage is reminiscent of the 2000s —an era that saw ~400 Bcf of storage capacity additions — the market drivers providing the tailwinds today are drastically different from that cycle.
Biden Administration Criticized for Limits to Arctic Oil, Gas Drilling
2024-04-19 - The Bureau of Land Management is limiting new oil and gas leasing in the Arctic and also shut down a road proposal for industrial mining purposes.
SLB’s ChampionX Acquisition Key to Production Recovery Market
2024-04-19 - During a quarterly earnings call, SLB CEO Olivier Le Peuch highlighted the production recovery market as a key part of the company’s growth strategy.
PHX Minerals’ Borrowing Base Reaffirmed
2024-04-19 - PHX Minerals said the company’s credit facility was extended through Sept. 1, 2028.
Exclusive: The Politics, Realities and Benefits of Natural Gas
2024-04-19 - Replacing just 5% of coal-fired power plants with U.S. LNG — even at average methane and greenhouse-gas emissions intensity — could reduce energy sector emissions by 30% globally, says Chris Treanor, PAGE Coalition executive director.