Revus Sells 10% of Yme Re-Development Project to Lotos for $52.5MM
Revus Energy ASA has now formally completed the sale of a 10% interest in production licences 316, 316B, 316CS and 316DS, including the Yme re-development project, to Lotos E&P Norge AS. The total sales price is US $52.5 million, including remaining tax balances. The financial effect for Revus will be a net profit after tax of approximately NOK 200 million.
As a consequence of this transaction, Revus Energy's capital expenditure in 2008 and 2009 will be reduced with approximately NOK 400 million.
The opportunity set in PL316 comprises both the exploration potential and a redevelopment of the abandoned Yme Field. Yme was a technically and commercially challenging field to develop and as a result the recovery factor at abandonment was relatively low at 15%. It is estimated that over 280 MMbbl (44 MSm3) of oil remains in place in the various Yme segments. The Yme partners have decided to redevelop the Yme Field, and in 2007 the plan for development and operation (PDO) was approved by the Ministry of Oil and Energy (OED). The development concept includes a jack-up platform with dry well trees above the Gamma Structure. Beta will be developed with subsea wells tied back to the jack-up platform. Further exploration drilling near the Yme Field is planned for 2009.
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