Lime Petroleum AS has signed an agreement with OKEA AS (OKEA) to acquire OKEA’s 15% interest in the producing Yme Field in the Norwegian North Sea, for a post-tax consideration of $15.65 million. All related decommissioning costs to be transferred to Lime.
In addition, Lime will pay OKEA a post-tax consideration of $9.2 million in 2027, which will be repaid to Lime in four 25 percent tranches upon completion of four pre-defined stages of abandonment at the field, operated by Repsol Norge AS (the Acquisition). The Acquisition has an effective date of January 1, 2024, and is expected to be completed by the end of the year. With the Acquisition, Lime will increase its share in the Yme Field from 10 percent to 25 percent.
The Yme Field is located in PL 316 and PL 316B on the Norwegian Continental Shelf. According to the Norwegian Petroleum Directorate, Yme is a field in the south-eastern part of the Norwegian sector of the North Sea, 130 kilometers northeast of the Ula field. The water depth is 100 meters. The field comprises two separate main structures, Gamma and Beta, which are 12 kilometers apart. The reservoirs are in sandstone of Middle Jurassic age in the Sandnes Formation, at a depth of 3,150 meters. Yme was discovered in 1987, and production started in 1996. In 2001, production ceased because operation of the field was no longer regarded as profitable. The Yme Field was redeveloped and put into production in 2021, after a 20-year hiatus.
In 2022, Lime acquired a 10 percent stake in the Yme Field from KUFPEC Norway AS, its second acquisition of a producing asset in Norway after its acquisition of a 33.8434 per cent interest in the producing Brage Field in 2021, strengthening Lime’s transformation into a full-fledged exploration and production player on the Norwegian Continental Shelf.
The Yme Field is currently producing between gross 20,000 and 25,000 boepd, following the completion of the drilling of development wells in the second quarter of 2024. With the Acquisition, daily production net to Lime will increase by approximately 3,500 boepd in 2024.
An Independent Qualified Persons Report (QPR) by AGR Energy Services AS (AGR) dated March 13, 2024 attributed 39.47 million barrels of 2P reserves to the Yme Field as of December 31, 2023. Thus, the Acquisition will add 5.9 million barrels net to Lime as of the effective date of the Acquisition. In addition, the QPR estimated 8.2 million barrels of 2C resources in the field, with 1.23 million barrels net to Lime post-Acquisition.
Mr. Lars B. Hübert, CEO of Lime, said: “The Yme Field has been on a good trajectory since Lime entered in 2022 and we are pleased to increase our stake, in line with our strategy to increase our reserves and resources base. We have a great relationship with the operator, Repsol, and are working closely with them to find additional value in Yme. We expect this latest Acquisition to add to Lime’s cash flow in the coming years.”
The Acquisition will be financed through cash at hand. No further financing is needed to complete the Acquisition.
