Lime Petroleum AS, a 90% subsidiary of Rex International Holding Ltd., conditionally agreed to acquire Repsol Norge AS’s 33.84% interests in the producing Brage field and the five licenses on the Norwegian Continental Shelf over which the field straddles for $42.6 million.
Wintershall Dea-operated Brage field lies in the northern part of the North Sea, 10 km east of Oseberg field in water depth of 140 m. Discovered in 1980, production started in 1993. It has been developed as a fixed integrated production, drilling, and accommodation facility with a steel jacket.
Brage produces oil from sandstone of Early Jurassic age in the Statfjord Group, and sandstone 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, which vary in quality from poor to excellent, lie at a depth of 2,000-2,300 m. The main drainage strategy is water injection, with gas lift utilized in most wells. Brage oil is exported via the Oseberg Transport System to the Sture terminal. Gas is exported via a pipeline to Kårstø.
In 2020, about 1.38 MMboe (3,800 boe/d) were produced from the field, net to Repsol’s working interest.
Based on Norwegian Petroleum Directorate website data, Brage field produced 3,440 boe/d (net) for March 2021 and some 21.52 MMboe of reserves remain. Lime Petroleum intends to commission a summary qualified person’s report on the field upon deal completion.
Lime believes there is further upside from future in-fill drilling for production and exploration drilling of high value near-field prospects that are expected to add further production.
Repsol has agreed to pay to (or on behalf of) Lime Petroleum, the Brage Decommissioning Carry limited to 95% of decommissioning costs for the current Brage field infrastructure in respect of its 33.84% interest in the field.
