Lundin buys interest in Rolvsness discovery, Goddo prospect off Norway

Lundin Petroleum has signed a deal to buy Lime Petroleum’s acreage in the Rolvsness discovery and Goddo prospect offshore Norway for up to $45 million.

With the acquisition, Lundin Norway will see its working interest in the Rolvsnes oil discovery in PL338C and in the recently awarded, nearby license PL338E1 increase from 50 to 80 percent and the Goddo prospect in PL815 from 40 to 60 percent.

“This will consolidate the Company’s position in the proven weathered and fractured basement play on the Utsira High, close to the Edvard Grieg facilities. The transaction, which is effective from January 2019, involves a cash consideration to Lime Petroleum of USD 43 million and a contingent payment of a further USD 2 million, with completion subject to customary government approvals,”

Rolvsnes is located 3 km south of the Lundin Norway operated Edvard Grieg platform on the Utsira High and has a gross estimated resource range of between 14 and 78 million barrels of oil equivalent (MMboe).

250 MMBOE

Following the successful appraisal well and production test in 2018, an extended well test (EWT) is expected to be conducted at Rolvsnes in 2021 to better understand the long-term reservoir behavior. The production test in 2018 further de-risked the on-trend Goddo basement prospect in adjacent PL815, on which an exploration well will be drilled in 2019. The combined gross resource potential of the Rolvsnes and Goddo area is more than 250 MMboe, Lundin said on Monday.

Alex Schneiter, CEO and President of Lundin Petroleum said: “I am very pleased to announce the acquisition of Lime Petroleum’s working interests in Rolvsnes and Goddo, which not only further consolidates our position in one of our core areas, but also offers the opportunity to further benefit from the significant potential in this successfully tested basement play, which is unique on the Norwegian Continental shelf. This acquisition also provides further commercial alignment with Edvard Grieg, as we focus on using high-margin, tie-back developments to extend plateau production through the facilities beyond the current mid-2020 guidance.”

Lundin was earlier this month awarded a total of 15 exploration license interests in the 2018 Norwegian licensing round (Awards in Predefined Areas, APA).

The record-high award includes 8 licenses in the North Sea, 2 licenses in the Norwegian Sea and 5 licenses in the southern Barents Sea, with nine of the awarded licenses to be operated by Lundin Norway.