REX INTERNATIONAL: Bullish on oil find in new areas in Norwegian Sea

Rex International Holding is bullish on its next move, suggesting it expects to find oil using its proprietary technology in the Norwegian Sea.  CEO Mans LidgrenRex announced that its 90% subsidiary, Lime Petroleum AS, has on 21 June 2019, signed an agreement with DEA Norge to acquire 30% interests in each of the licences PL838 and PL838B in the Norwegian Sea. Mr Måns Lidgren, CEO of Rex International Holding, said, “We are pleased to seize this farm-in opportunity, especially when our proprietary de-risking tool Rex Virtual Drilling has detected a promising prospect in the well that is slated to be drilled soon.”

The transfer of the interests is pending regulatory approval, which will be announced upon completion of the transfer of the interests.

Exploration drilling on the licences is expected in Q4 2019, with the planned well targeting multiple prospective horizons.

There, Rex has "positive assessments from Rex Virtual Drilling, amplitude versus offset (AVO) and geological & geophysical analyses." 

The licences PL838 and PL838B are located in the prolific Donna Terrace area of the Norwegian Sea in water depth of some 350 metres.

PL838 contains the Shrek prospect with the main target in the Middle Jurassic Garn Formation, a high quality oil reservoir at a depth of approximately 2,000 metres.

Additional prospective layers are identified in the above-lying Cenozoic section.

The operator PGNiG has a 40 per cent interest, while AkerBP holds the remaining 30 per cent interest in the licences.

The Shrek exploration well is anticipated to be spudded in the beginning of October 2019 and will take some 24 days to drill.

Mr Lars Hübert, Chief Executive Officer of LPA, said, “The farm-in is consistent with our technology and infrastructure-led value creation strategy. The prospect is located some 4km from the AkerBP operated Skarv field and can be tied back to the Skarv facilities in the event of a discovery.”