Rex International unit acquires 20% interest in two North Sea exploration licences

OIL exploration and production company Rex International 5WH : 5WH 0%announced on Wednesday that a 90 per cent-owned subsidiary, Lime Petroleum, has acquired a 20 per cent stake in two exploration licences in the North Sea.

It said that Lime inked a deal with Norwegian fuel exploration company AkerBP to take a 20 per cent interest in licences PL867 and PL867B in the North Sea, pending regulatory approval.

Rex said exploratory drilling is expected to commence in late-2022. The planned well will target a large prospect called Gjegnalunden, with a reservoir in the traditional Jurassic section.

Apart from the stake in the two licences, Lime additionally signed a call option for the right to a 20 per cent farm-in to licence PL1041, also in the North Sea. The option, Rex says, must be exercised before Oct 1, 2021.

If the company chooses to exercise the call option, drilling for oil in PL1041, targeting the Lyderhorn prospect, is expected to begin in November this year.

Commenting on the acquisitions, Rex International executive chairman Dan Broström said these are in line with the oil group's efforts to build up its reserves and resources portfolio, while Lime's chief executive Lars Hübert said the company is looking forward to leveraging Rex's virtual drilling technology to tap infrastructure-led exploration into a "highly prolific" part of the North Sea.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Shares of Rex International closed at 23.5 Singapore cents on Wednesday, up 0.5 cent or 2.17 per cent.

This story has been edited for clarity.

READ MORE:

• Rex International doubles down on oil even as it diversifies

• Rex shares actively traded on drone technology investment

• Rex International's bond issue fully subscribed; used to fund acquisition of Norway oilfield