Rex International Holding Limited, a new-generation technology-driven oil company, announces that its 90 per cent subsidiary Lime Petroleum AS (“LPA”), is participating in the drilling of well 16/1-28S on the Rolvsnes oil discovery in PL338C to confirm commercial rates from a horizontal well that will be drilled in fractured and weathered basement reservoirs similar to the reservoirs currently producing in the northern area of the Edvard Grieg field. LPA has a 30 per cent interest in the North Sea licence.

The operator Lundin Norway AS (“Lundin”) started drilling the well on 3 April 2018, using the semisubmersible rig COSL Innovator in a water depth of 107m. The well is located 3.5km to the south of the Lundin operated Edvard Grieg platform in the Utsira High area. The well will be drilled to a depth of about 1.9km, and then 2 to 2.5km horizontally in the topmost part of the fractured and weathered basement constituting the reservoir of the Rolvsnes discovery. The discovery is proven with two earlier wells, demonstrating an oil column of 40m and gross recoverable hydrocarbon volumes up to 90 mmboe(1). The drilling and production testing of the well is expected to take 115 days.

Following successful drilling and production testing, an extended well test via the Edvard Grieg facilities will be considered as the next step in appraising the discovery.

(1) Gaffney, Cline & Associates, Qualified Person’s Report on Rolvsnes prepared for LPA; 2 February 2018

Other drilling campaigns within the cluster in the pipeline

LPA also holds a 20 per cent interest in the adjacent licence PL815, again operated by Lundin, comprising the Goddo prospect. Success in the Rolvsnes well will de-risk the prospectivity of the larger Rolvsnes and Goddo area, estimated to contain gross resources of more than 200 mmboe.

The Rolvsnes licence PL338C also comprises several geologically independent prospects that are being matured for drilling. The distance to the Edvard Grieg platform, set to serve as the infrastructure hub for the area, is very short. This will facilitate quick monetisation of any discoveries.

Further, LPA holds a 30 per cent participating interest in PL818 and PL818B; award of the latter was announced in January 2018. For both licences, Aker BP is the operator holding 40 per cent while Statoil Petroleum AS is a partner with 30 per cent. Drilling of the main Orkja prospect could take place in 2019. Upon success, the discovery could be tied fast-track to the Aker BP-operated producing Ivar Aasen oil field.

The above drilling plans are part of LPA’s value creation strategy to have a cluster of investments in the North Sea that are close to existing infrastructure, so that potential commercialisation and return on investment upon discoveries can be fast-tracked.