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Rex unit gets regulatory nod to acquire 30% stake in two Norwegian Sea licences

REX International said on Wednesday that its unit Lime Petroleum AS has received regulatory approval to acquire a 30 per cent interest each in two Norwegian Sea drilling licences from DEA Norge.

The deal for the licences - PL838 and PL838B - will be completed on Oct 31, 2019, but the effective date will be Jan 1, 2019. The oil exploration and production company said it is the standard practice for licence transactions in Norway.

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

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 approximately 2,000 metres, Rex said in June.

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Exploration drilling on the Shrek prospect in the licence PL838 commenced on Aug 30, 2019, Rex said on Wednesday.

The Catalist-listed company's shares traded down S$0.001 or 1.3 per cent to S$0.078 as at 1.18pm.