Lime Petroleum acquires 33.84% of producing Brage Field in Norway from Repsol.
As of 15 June 2021, Lime Petroleum entered into a conditional sale and purchase agreement with Repsol Norge AS, to acquire Repsol’s 33.8434 per cent interests in the oil, gas and natural gas liquids (NGL) producing Brage field, as well as the five licences on the Norwegian Continental Shelf over which the Brage field straddles, for a post-tax consideration of US$42.6 million.
RESERVOIR
Brage produces oil from sandstones of Early Jurassic age in the Statfjord Group, and sandstones of Middle Jurassic age in the Brent Group and the Fensfjord Formation. There is also oil and gas in Upper Jurassic sandstone in the Sognefjord Formation. The reservoirs lie at a depth of 2,000-2,300 metres and reservoir quality varies from poor to excellent.
A full cycle company
The transformational acquisition of the Wintershall Dea-operated Brage Field fullfils Lime Petroleum’s ambition to transition from pure play exploration, to a full cycle exploration and production company on the Norwegian Continental Shelf, and to establish recurrent cash flow, as well as develop and drive further value in Lime Petroleum’s existing portfolio.
Brage is a field in the northern part of the North Sea, 10 kilometres east of the Oseberg Field. It was discovered in 1980, and production started in 1993.
In 2020, about 1.38 MMboe or 3,800 boepd were produced from the Brage Field, net to Repsol’s 33.8434 per cent working interest.
Although the Brage Field has been producing for a long time, work is still ongoing to find new ways of increasing recovery from the field, according to a press release from Lime Petroleum.
According to the Norwegian Petroleum Directorate, there is 21.52 MMboe of remaining reserves in the Brage Field. Accordingly, net 2P Reserves of about 7.3 MMboe from the Brage Field will be added to Lime Petroleum’s current 2C Contingent Resources of 27.7 MMboe.
Transformational transaction
“The Brage Field will be transformational to the Company. It will not only provide stable cash-flow to Lime Petroleum but will complement our exploration and development projects on the Norwegian Continental Shelf, both in terms of cash flow and technical expertise. We intend to work closely with the Brage operator and partners to maximise the value of the asset, including the near-field exploration opportunities we see within the licences,” says Lars Hübert, CEO of Lime Petroleum.
