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Rex unit completes deal for 30% stake in 2 Norwegian Sea drilling licences

REX International on Friday said its unit Lime Petroleum AS has completed a farm-in deal for a 30 per cent stake in two Norwegian Sea drilling licences from DEA Norge.

A farm-in is an arrangement for an operator to acquire a stake in a lease where oil or gas has been discovered or is produced.

The farm-in for the two licences PL838 and PL838B was completed on Oct 31, 2019 and is effective Jan 1, 2019 - a
standard practice for licence transactions in Norway, said the oilfield services firm.

On completion, Lime Petroleum paid DEA Norge for its share of actual costs in the licences for the interim period between the completion date and effective date.

While Lime Petroleum AS holds 30 per cent in each of the licences, operator PGNiG Upstream Norway AS has a 40 per cent interest, and AkerBP holds the remaining 30 per cent interest.

The licences are located in the Donna Terrace area of the Norwegian Sea.

PL838 contains the Shrek prospect with the main target in the Middle Jurassic Garn Formation, a high quality oil reservoir at a depth of about 2,000 metres, Rex said in June.

Rex International said on Oct 16 that an oil and gas discovery was made from the drilling of exploration and appraisal wells in the Norwegian Sea – the first and second coming from PL838.

The recoverable oil equivalents of the discovery was around three to six million standard cubic metres, or 19 to 38 million barrels, based on the preliminary estimates of PGNiG Upstream Norway.

Rex International shares closed at S$0.107 on Thursday, up 0.1 Singapore cent or 1.0 per cent.

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