Lime Petroleum AS is acquiring a 17 per cent stake in PL740 in the Brasse Field, Norwegian North Sea, from DNO Norge AS and OKEA ASA.
Lime entered into sale and purchase agreements to acquire 10.7212 per cent interest from DNO Norge and 6.2788 per cent interest from OKEA in PL 740. The Brasse Field is expected to start commercial production in 2027, Lime said in a news release Tuesday.
OKEA has reported recoverable resources in Brasse to be 21 million to 29 million barrels of oil equivalent (MMboe), in a recently published environmental impact study for the field, of which 25 to 30 per cent is gas, according to the release. Lime estimates that the farm-in of the 17 per cent interest in PL740 will result in around four MMboe of contingent resources net to the company. The transaction is conditional on customary governmental approvals and Lime expects that completion will take place at the end of 2023 or in early 2024, Lime noted.
The Brasse Field is located in shallow water on the Norwegian Continental Shelf just south of the Brage Field, in which Lime holds a 33.8434 per cent interest. The license with the Brasse Field is operated by OKEA. OKEA and DNO currently hold 45.5576 per cent and 50 per cent in the license, respectively, with M Vest Energy AS holding the remaining 4.4424 per cent interest. The partnership has agreed on a fast-track development with a subsea tie-back to the Brage platform around 8.1 miles (13 kilometres) away. The plan for development and operation is expected to be submitted to Norwegian authorities in early 2024, according to the release.
“The Farm-in is a further extension of Lime’s strategy to build value in the company by adding reserves and production, following our acquisitions of interests in the producing Brage and Yme fields in 2021 and 2022 respectively”, Lime CEO Lars Hübert said. “Through our participation in the Brage Field, we know the area very well. The Brasse Field development will have significant positive synergies with Brage, likely allowing the extension of Brage Field’s lifespan, adding to our cash-flow stream in the long term. We look forward to working closely with the operator, OKEA, and the other partners in the field in the months and years to come”.
Brage Field Discovery
In late October, OKEA made an oil discovery at the Brage Field in the northern part of the North Sea, located eight miles (13 kilometres) north of the Brasse Field. Between 0.2 million and 0.5 million standard cubic meters of recoverable oil was proven in connection with drilling well 31/4-A 13 E, of which OKEA is the operator. Lime holds a 33.8434 per cent interest in the Brage Field, and the discovery will add 0.4 to 1 million barrels of oil reserves net to the company, it said in a separate news release.
Estimated 2P reserves in the Brage Field are 10.81 MMboe, of which 3.66 MMboe are net to Lime, according to an independent report from AGR Energy Services AS dated March.
The Brage Field is being developed with an integrated production, drilling, and living quarters facility with a steel jacket, according to the release. The oil is transported by pipeline to the Oseberg field, moving through the Oseberg Transport System pipeline to the Sture terminal in Norway. Moreover, a gas pipeline is connected to the Statpipe pipeline system.
Norway-based Lime has a portfolio of licenses comprising interests in the Brage and Yme producing fields, and in exploration and development assets focusing on infrastructure-led exploration, with both high-impact prospects and high-value prospects. The company explores, develops, and produces hydrocarbons, primarily focused on oil, on the Norwegian Continental Shelf.