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Rex flags production upside off Norway

OIL and gas-focused Rex International is seeing production upside from a discovery off Norway.

A test well drilled in the permit, PL338C, that is 30 per cent owned by Rex’s subsidiary confirmed sustainable commercial flow from an oil discovery.

The well drilled on the Rolvsnes oil discovery produced up to 7,000 barrels of oil during a production test, Rex said after Monday’s trading close.

Rex’s 90 per cent-owned subsidiary, Lime Petroleum, holds a 30 per cent interest in PL338C, which is operated by Lundin Norway AS.

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The Rolvsnes discovery is located in the Utsira High area off Norway, three kilometres to the south of the oil-producing Edvard Grieg platform that is operated by Lundin.

Rex added that the next step towards bring the new well drilled to production is to tie it back to the Edvard Grieg platform.

Rex’s CEO Måns Lidgren, said: “We have built a cluster of investments in the Utsira High core area that are close to existing infrastructure, so that potential commercialisation and return on investment upon discoveries can be fast-tracked.

“We are confident in the forward commercialisation plan for the Rolvsnes discovery and the potential value increase from the drilling of our other exploration assets around Rolvsnes.”

Rex’s executive chairman, Dan Broström, said: “We are now one step closer to achieving a major milestone in generating recurring revenue for the group, amid more favourable macro-conditions compared to a year ago.

“While we continue to focus on our activities in Norway and Oman together with professional partners, the group, being long-term debt-free, is in a financially healthy position to bring these plans to fruition.”