Lundin strengthens North Sea basement acreage position

Lundin strengthens North Sea basement acreage position

Lundin Norway has agreed to acquire Lime Petroleum’s entire Utsira High acreage position in the Norwegian North Sea, covering the Rolvsnes and Goddo basement area.

The transaction will raise Lundin’s interest in the Rolvsnes oil discovery in license PL338C and in the recently awarded, adjacent PL338E1 from 50 to 80%, and its stake in the Goddo prospect in PL815 from 40 to 60%.

Both are in a proven weathered and fractured basement play, close to the company’s Edvard Grieg production facilities. The transaction involves a cash consideration to Lime Petroleum of $43 million and a contingent payment of a further $2 million.

Rolvsnes is 3 km (1.8 mi) south of the Edvard Grieg platform with a presently estimated resource range of 14-78 MMboe. Following last year’s successful appraisal well and production test on the structure, an extended well test should follow in 2021 to improve understanding of the long-term reservoir behavior.

Last year’s test also helped de-risk the on-trend Goddo basement prospect, where Lundin plans to drill an exploration well in 2019. It assesses the combined resource potential of the Rolvsnes and Goddo area at more than 250 MMboe.

Alex Schneiter, CEO and president of Lundin Petroleum, said: “This acquisition also provides further commercial alignment with Edvard Grieg, as we focus on using high-margin, tieback developments to extend plateau production through the facilities beyond the current mid-2020 guidance.”

Source: Offshore-Magzine

Published: 29-01-2019