Lundin Norway acquires further interests in Rolvsnes, Goddo on the Utsira High

STOCKHOLM -- Lundin Petroleum AB (Lundin Petroleum) has announced that its wholly-owned subsidiary Lundin Norway AS (Lundin Norway) has entered into an agreement with Lime Petroleum AS (Lime Petroleum) a subsidiary of Rex International Holding Limited, to acquire its entire Utsira High acreage position covering the Rolvsnes and Goddo basement area.

The acquisition takes Lundin Norway’s working interest in the Rolvsnes oil discovery in PL338C and in the recently awarded, adjacent license PL338E1 from 50% to 80% and the Goddo prospect in PL815 from 40% to 60%. 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 $43 million and a contingent payment of a further $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 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.