Rex International farms down stake in North Sea licences to 30%

REX International ’s 91.65 per cent subsidiary Lime Petroleum is paring its intended stake in 2 oil and gas (O&G) licences in the Norwegian North Sea to 30 per cent, from 40 per cent previously.

Earlier in April the group announced plans to acquire current operator MOL Norge’s 40 per cent interests in the licences which are for sites located adjacent to the Balder oil field, and north of Lime Petroleum’s 2 other licensed areas of exploration.

In a bourse filing on Friday (Jul 1), the group said it was farming down its interest in the licences by 10 percentage points to Norwegian O&G producer Var Energi, which operates the Balder oil field. 

Lime will now hold 30 per cent interests in the 2 licences once the transfer of interests from MOL Norge is completed, pending regulatory approval and corporate approval from Var Energi.

The move to farm down comes as part of Lime’s broader strategy to have balanced holdings in its portfolio of assets, said Lime chief executive Lars Hubert.

Hubert said he also hopes for further drilling within the licences in the next 18 to 24 months.

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Shares of mainboard-listed Rex International were trading at S$0.265, down by S$0.01 or 3.6 per cent, as at the midday break on Friday, before the announcement was made.