Rex International Holding Limited (Rex International Holding or Rex or the Company, and together with its subsidiaries, the Group), one of the largest companies listed on the Catalist of the Singapore Exchange Securities Trading Limited, announced Tuesday that its jointly-controlled entity, Lime Petroleum Norway AS (Lime Norway) has signed an agreement with Tullow Oil Norge AS (Tullow) to acquire an additional 20 percent stake in licenses PL591, PL591B and PL591C in the Norwegian Sea. The transfer of the 20 percent stake, which will increase Lime Norway’s stake in the licenses to 25 percent, is pending regulatory approval. The licenses are operated by Tullow and spudding of an exploration well in the Zumba prospect is on track to start early third quarter of 2015.
The licenses are located in the Halten area of the Norwegian Sea in water depth of some 984 feet (300 meters). The Zumba prospect has Upper Jurassic Rogn formation sands as reservoir with gross unrisked exploration resources of 256 million barrels oil equivalents and a geological chance of success estimated at 27 percent (Source: North Energy ASA (North Energy) 4Q 2014 presentation, Feb. 12).
Mans Lidgren, CEO of Rex International Holding, said, “Lime Norway completed the acquisition of a 5 percent stake in PL591 and the neighbouring PL591B from North Energy in October 2014 and was awarded PL 591C in the latest 2014 Awards in Predefined Areas (APA) round in January. We are pleased to seize this opportunity to increase our stake in the licenses, given the promising potential we see in the Zumba prospect with Rex Virtual Drilling and the upcoming spud date of the exploration well.”
Following the transfer of the 20 perstake to Lime Norway, Tullow’s stake in the licenses will be 60 percent, North Energy 15 percent and Lime Norway 25 percent. Lime Norway is a wholly-owned subsidiary of Lime Petroleum Plc. Lime Petroleum Plc is a jointly-controlled entity in which the Company holds a 65 percent indirect stake.
Rex International Holding and its jointly controlled entities, including Lime Petroleum Plc and HIREX Petroleum Sdn Bhd, hold exclusive rights to the direct hydrocarbon indicator, Rex Virtual Drilling. By virtue of Rex Virtual Drilling, Lime Norway was accorded Pre-qualified Petroleum Company status in Norway in February 2013, allowing it to receive a cash tax refund of 78 percent of exploration costs annually. With capital injections totalling $23 million made by the shareholders of Lime Petroleum Plc in November 2013 and January 2014, as well as with the $39.87 million (NOK 300 million) financing facility secured from Skandinaviska Enskilda Banken AB, Lime Norway has adequate financing to fulfil its work commitments for at least the next one year.
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