Lime Petroleum Relinquishes 3 Norwegian Licenses in the North Sea
Hibiscus Petroleum Berhad (Hibiscus Petroleum) announced Thursday that its jointly-controlled entity, Lime Petroleum Norway AS (Lime Norway) has decided to surrender PL509S, PL509BS and PL509CS, all of which are located in the North Sea, following the deadline for a drill or drop decision by July 23.
Following the assessment of results obtained from reprocessed seismic data, the application of Rex Virtual Drilling (RVD) and electromagnetic surveys (EM), Lime Norway has supported its partners’ evaluation of all available data and declined from continued participation in these licenses. Lime Norway’s partners in these licenses are North Energy ASA (North Energy), Fortis Petroleum Norway AS and Rocksource Exploration Norway AS.
The decision to relinquish PL509S, PL509BS and PL509CS was taken after the sands for which prospectivity is associated with sandstones of Paleocene age located in the Central Viking Graben, were found to be marine channel deposits and thin, resulting in confident mapping being challenging. RVD analysis showed presence of anomalies, but these were deemed not of sufficient size to be attractive. The EM survey obtained also did not reveal significant positive indicative EM to proceed further. Hence, as conventional mapping, RVD and EM have not been able to define
prospects with acceptable risk-reward benefits, North Energy as the operator of the three licenses, had proposed to its partners to bow out from holding on to their interests in these licenses.
Subsequent to the relinquishment of PL509S, PL509BS and PL509CS, Hibiscus Petroleum continues to hold various levels of equity in 13 licenses in Norway.
In view of the attractive fiscal terms offered by the Norwegian Petroleum Tax Act whereby 78 percent of eligible exploration expenditure is reimbursed annually, irrespective of whether production is achieved, Lime Norway is not expected to bear a material adverse effect from dropping the 3 licenses. The fiscal terms in Norway are unlike the petroleum fiscal systems of most countries whereby a certain portion of exploration expenditure may only be recovered upon production.
Following the capital injections totalling $23 million made by Lime Petroleum Plc’s (Lime) shareholders in November 2013 and January 2014, together with the $48 million (NOK 300 million) financing facility secured from Skandinaviska Enskilda Banken AB, Lime Norway has secured adequate financing to fulfil their work commitments, including the drilling of 2 wells, into 2015.
Lime Norway is a wholly-owned subsidiary of Lime. Lime is a jointly-controlled entity in which Hibiscus Petroleum owns a 35 percent stake.
12
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Gunvor CEO Sees Russian Refining Capacity Taking Hit from Drone Strikes
- These Factors Helped Brent Oil Price Break Above $85
- Sinopec Engineering Posts Higher Annual Petrochemicals Revenue
- Imperial Pipeline in Winnipeg Goes Offline for Three Months
- Gaz System to Acquire Gas Storage Poland
- Subsea7 Secures Contract to Service Woodside's Trion
- Adnoc Inks Supply Deal for Ruwais LNG Project with Germany's SEFE
- EIA Boosts USA Crude Oil Production Forecasts
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension