News listings

energy-pedia exploration

Norway flagNorway

Europe / Caspian / CIS >>> Norway

Norway: Rex International signs options agreements to fund exploration drilling of two wells offshore Norway


10 Sep 2020

Photo - see caption

Rex International, a technology-driven oil company, has announced that its direct wholly-owned subsidiary Rex International Investment ('RII') has entered into options agreements with Trace Atlantic Oil, for Trace to have options to receive shares of proceeds of potential dividends from its subsidiary Lime Petroleum ('LPA') due to RII if drilling activities of the Apollonia prospect in licences PL263D/E and the Fat Canyon prospect in licences PL937/B are successful respectively. RII has a 90% interest in LPA.

Option fees totalling US$1.1 million, comprising US$550,000 for each well, will be used to fund part of LPA’s participation in the exploration drilling of the two above mentioned prospects. Should the Apollonia and Fat Canyon wells result in oil discoveries, Trace stands to receive 6.75 per cent and 12.00 per cent of dividends due to RII from any successful sales of the respective licences.

The Group’s interests in LPA will remain unchanged should all options be exercised by Trace. If the contemplated wells in PL263D/E and/or PL937/B turn out dry and unsuccessful (as determined by the Norwegian Oil Directorate), each option relating to the respective wells shall lapse and the terms under the Options Agreements shall be null and void, and RII shall not be liable for any payments whatsoever. Further details of the Options Agreements can be found in the Company’s announcement dated 9 September 2020.

Mr Dan Brostrom, Executive Chairman of Rex, said:

'This is an innovative way to ‘farm-out’ our assets at a premium valuation without diluting our interest in our 90 per cent subsidiary, LPA. The Group has always been prudent in its cash management and the optionsagreementsallow us to reduce our financial exposure in funding LPA’s participation in the two exploration wells, especially in the current challenging market environment.'

On 1 September 2020, Rex announced the completion of LPA’s 20 per cent farm-in to the PL263D/E licences, with an effective date from 1 January 2020 (a standard practice for licence transactions in Norway). The operator Equinor is now expected to spud an exploration well targeting the prospect Apollonia on the licences in late September 2020.

LPA’s 15 per cent farm-in to each of the licences PL937 and PL937B in the Norwegian Sea, also with an effective date from 1 January 2020, was completed on 29 May 2020. Exploration drilling on the licences on the prospect Fat Canyon is expected in early 2021. The Fat Canyon prospect is located in the well-known Jurassic reservoir and has strong support from the Group’s proprietary Rex Virtual Drilling technology.

Original article link

Source: Rex International





Bookmark and Share


A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.


Subscriber Only Deals

Current Deals

Current Upstream Deals: 373

Completed Deals

Completed Upstream Deals: 5961

Company Profiles

Current Company Profiles: 2745

Corporate Activity

Current Corporate Activity articles: 3564

Companies Looking

Current number of articles: 444

Company Sales

Current Company Sales articles:1443

Geostudies

Current Geostudies articles: 766

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...


energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...



energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...

Subscribe

Subscribe to the FREE
energy-pedia Daily Newsletter
Subscribe

Union Jack Oil 149
OPC
KL Publishing
Rose & Assocs 149
Government of South Australia
SLR Consulting logo
energy365
Bayphase
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans
UNITED KINGDOM

Tel: +44(0)1727 822675

Email: info@energy-pedia.com