Lime Petroleum AS has accomplished its acquisition of a 15 p.c curiosity within the Yme subject from OKEA ASA for a post-tax consideration of $15.65 million.
The Yme subject is situated within the southeastern a part of the Norwegian sector of the North Sea. The efficient date of the transaction is January 1, 2024.
All associated obligations, together with decommissioning prices, have been transferred to Lime, the corporate stated in a information launch. With the acquisition, Lime will increase its share within the Yme Area to 25 p.c.
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Lime’s cost of a post-tax consideration of $9.2 million to OKEA in 2027 might be repaid to Lime in 4 25 p.c tranches upon completion of 4 pre-defined phases of abandonment of the sector.
The Yme Area is situated in PL 316 and PL 316B on the Norwegian Continental Shelf. In keeping with the Norwegian Petroleum Directorate, Yme is a subject within the south-eastern a part of the Norwegian sector of the North Sea, 80.77 miles (130 kilometers) northeast of the Ula subject.
Yme was found in 1987, and manufacturing began in 1996. After a manufacturing halt in 2001, the sector was redeveloped and put into manufacturing in 2021.
In 2022, Lime acquired a ten p.c stake within the Yme Area from KUFPEC Norway AS, “strengthening Lime’s transformation right into a full-fledged exploration and manufacturing participant on the Norwegian Continental Shelf,” the corporate stated in an earlier assertion.
Lime CEO Lars Hübert stated, “We’re happy that our technique to construct up reserves and assets on the Norwegian Continental Shelf is transferring at a great clip. Each the Kim and Sognefjord East targets and the Bestla tie-back to the present infrastructure in Brage are good examples of our near-field and in-field exploration and growth technique which can decrease extra development prices and in flip, scale back emissions, whereas fast-tracking manufacturing and lengthening Brage Area’s lifespan. These new developments, along with our elevated curiosity in Yme, will add to our reserves and assets within the years to return”.
The Yme Area presently produces between 20,000 and 25,000 barrels of oil equal per day (boepd gross), following the completion of the drilling of growth wells within the second quarter. With the acquisition, each day manufacturing internet to Lime will enhance by roughly 3,500 boepd in 2024.
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In the meantime, the Brage Unit partnership has obtained approval of the PL055FS license which can permit the exploration, and if profitable, growth of the Sognefjord East space.
Following the profitable 2023 Kim discovery throughout the Brage Area, the partnership additional evaluated the encircling Sognefjord East space for a possible extension of the reservoir to the east into the neighboring EXL004 Carbon Seize & Storage (CCS) Luna license.
The Brage Unit partnership consists of OKEA ASA as operator with a 35.2 p.c stake, Lime with 33.8434 p.c, DNO Norge AS with 14.2567 p.c, Petrolia Noco AS with 12.2575 p.c, and M Vest Vitality AS with 4.4424 p.c.
Additional, the Plan for Growth and Operation (PDO) for PL740 Bestla, through which Lime has a 17 p.c curiosity, was just lately accredited by the Norwegian Ministry of Vitality.
The challenge is transferring ahead and might be developed as a tie-back to the Brage Area with first oil anticipated in early 2027, Lime stated.
The PL740 partnership consists of OKEA ASA as operator with a 39.2788 p.c stake, DNO Norge AS with 39.2788 p.c, Lime with 17 p.c, and M Vest Vitality AS with 4.4424 p.c.
To contact the writer, e mail rocky.teodoro@rigzone.com
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