Rex's Norway entity to join in North Sea prospect drilling by Lundin

CATALIST-LISTED Rex International Holding on Tuesday said its jointly controlled entity, Lime Petroleum Norway, has signed a deal with Lundin Petroleum Norway to acquire a 30 per cent stake in licence PL338C in the North Sea, Norway.

The transfer of the 30 per cent stake is pending regulatory approval.

The North Sea licence is operated by Lundin and an exploration well in the licence was spudded by the semi-submersible Island Innovator on Feb 15, 2015.

The prospect to be drilled, named Gemini, is located about 10km from the Edvard Grieg production platform.

Rex CEO Måns Lidgren said: "The window of opportunity to farm-in to the licence came up very recently. Rex Virtual Drilling scans of the Gemini prospect drilling location have strongly indicated the presence of hydrocarbons, confirming conventional geological findings."

Following the transfer of the 30 per stake in the licence to Lime Norway and other pending transactions, Lundin's stake will be 50 per cent and that of OMV (Austria's largest listed industrial company), 20 per cent.

Lime Norway is wholly owned by Lime Petroleum, which in turn is a jointly controlled entity in which Rex holds a 65 per cent indirect stake.