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.
The agreement is effective from January 1, 2008. Revus Energy will retain a 10% interest in the Yme licences.
As a consequence of this transaction, Revus Energy's capital expenditure in 2008 and 2009 will be reduced with approximately NOK 400 million.
Revus Energy's stated reserves and contingent resources estimate for 10% of Yme is 5.7 million boe, and the company's total reserves and contingent resources after completion of the transaction will be 91 million.
PL316 was originally a large license comprising the blocks 9/2, 9/3, 9/5, 9/6 and 10/4, which covered an area of over 2200 km2 in the Egersund basin 80 km southwest of Egersund. In APA2006 a further 17 km2 was awarded to cover the Beta West structure of the Yme Field. PL316CS and PL316DS was carved out from PL316 in 2007.
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.
Production start for Yme is planned for July 1, 2009.
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