• The transaction consideration of US$42.6 million includes deferred tax assets which are recoverable for Lime Petroleum
• Production from the Brage Field of estimated 3,440 barrels of oil equivalent per day (net) will provide recurrent cash-flow to Lime Petroleum
• Net2P Reserves of about 7.3 mmboe from the Brage Field will be added to Lime Petroleum’s current 2C Contingent Resources of 27.7mmboe
• At the end of Brage Field’s production life, Lime Petroleum will pay an effective 1.69% of the total estimated decommissioning costs for the current Brage Field infrastructure
• The effective date of the transaction will be 1 January 2021

Lime Petroleum has entered into a conditional sale and purchase agreement with Repsol Norge to acquire Repsol’s 33.8434  per cent interests in the oil, gas and natural gas liquids (NGL) producing Brage field, and the five licences on the Norwegian Continental Shelf over which the Brage field straddles, for a post-tax consideration of US$42.6 million.

The transformational Acquisition of the Wintershall Dea-operated Brage Field fulfils Lime Petroleum’s ambition to transition from pure play exploration, to a full cycle exploration and production company on the Norwegian Continental Shelf, and to establish recurrent cash flow, as well as develop and drive further value in Lime Petroleum’s existing portfolio.

Brage is a field in the northern part of the North Sea, 10 kilometres east of the Oseberg Field. The water depth is 140 metres. Brage was discovered in 1980, and production started in 1993.  In 2020, about 1.38 mmboe or 3,800 boepd were produced from the Brage Field, net to Repsol’s 33.8434 per cent working interest. Although the Brage Field has been producing for a long time, work is still ongoing to find new ways of increasing recovery from the field.

According to the Norwegian Petroleum Directorate, there are 3.42 million Sm3 of oil equivalent or 21.52mmboe of remaining reserves in the Brage Field. Accordingly, net2P Reserves of about 7.3 mmboe from the Brage Field will be added to Lime Petroleum’s current 2C Contingent Resources of 27.7mmboe. Lime Petroleum intends to commission a summary qualified person’s report on the Brage Field upon completion of the Acquisition.

The Company believes that the economics from the current production reserve base in the Brage Field are robust, and there is further upside from future in-fill drilling for production and exploration drilling of high value near-field prospects that are expected to add further production to the Brage Field.

Mr Lars Hübert, CEO of Lime Petroleum said, 
“We are delighted that Repsol has decided to divest the Brage Field to Lime Petroleum. The Brage Field will be transformational to the Company.  It will not only provide stable cash-flow to Lime Petroleum but will complement our exploration and development projects on the Norwegian Continental Shelf, both in terms of cash flow and technical expertise.  We intend to work closely with the Brage operator and partners to maximise the value of the asset, including the near-field exploration opportunities we see within the licences.”

Nordic independent investment bank ABG Sundal Collier ASA has been appointed as financial adviser for a contemplated 2.5-year senior secured bond issue of up to NOK 500 million (approximately US$60.05 million).

KeyFacts Energy: Repsol Norway country profile   l   Rex International Norway country profile