Lundin to acquire Utsira High acreage from Lime Petroleum

Lundin Petroleum AB subsidiary Lundin Norway AS has agreed to acquire the Utsira High acreage position covering the Rolvsnes and Goddo basement area from Lime Petroleum AS, a subsidiary of Rex International Holding Ltd.

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%. This will consolidate the company’s position in the proven weathered and fractured basement play on the Utsira High, close to the Edvard Grieg facilities.

Rolvsnes, 3 km south of the Lundin Norway-operated Edvard Grieg platform, has a gross estimated resource range of 14-78 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 (OGJ Online, Aug. 27, 2018). The production test in 2018 further derisked the on trend Goddo basement prospect in adjacent PL815. An exploration well on the Goddo prospect is planned for 2019. The combined gross resource potential of the Rolvsnes and Goddo area is more than 250 million boe.

In addition to further consolidating Lundin’s position in its core areas and creating opportunity to benefit from the potential in the basement play the acquisition “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,” said Alex Schneiter, Lundin Petroleum chief executive officer and president.

The transaction, subject to government approvals, involves a cash consideration to Lime Petroleum of $43 million and a contingent payment of a further $2 million.