Rex Adds Contingent Resources on PL1125 Falk Discovery in Norway

Source: 4/22/2021, Location: Europe

• An independent summary Qualified Person’s Report (QPR) by RPS places gross 2C Contingent Resources (Development Unclarified) in the PL1125 Falk discovery in Norway, in which Lime has a 50 per cent interest, at 28.63 MMboe*
• Contingent resources estimated by various qualified persons in discovery assets in three Norway licences and attributable to Lime total 27.74 MMboe

Rex International Holding Limited, a technology-driven oil company, wishes to announce that its 90 per cent subsidiary Lime Petroleum AS (“Lime”), has added to its contingent resources, following the issuance of an independent summary Qualified Person’s Report (“QPR”) on 22 April 2021 by RPS Energy Consultants Ltd (“RPS”) for the Falk discovery in PL1125 in Norway, placing gross 2C Contingent Resources (Development Unclarified) at 28.63 MMboe*. Contingent resources in three discovery assets in Norway – Shrek, Folgelberg and Falk – attributable to Lime now total 27.74 MMboe.

Mr Dan Brostrom, Executive Chairman of Rex International Holding, said, “The Group has been working diligently to build up our reserves and resources portfolio in Oman and Norway. We now have recurring income from three producing wells in the Yumna Field, after achieving first oil in Oman in 2020. We have demonstrated in 2019 that value can be unlocked from contingent resources, with the monetisation of the Rolvsnes discovery and related assets in Norway for US$45 million. Value can also be extracted when contingent resources are converted into reserves upon production. To this end, Lime has added on to its inventory and is in discussions with its partners to develop the contingent resources in three licences - Shrek, Fogelberg and Falk - into reserves. Lime’s contingent resource base is now more than triple the remaining 8.6 MMstb** of estimated reserves in Oman.”

About the three discovery assets
• February 2020: Lime was awarded a 50 per cent interest in the PL1125 Falk licence. The Falk discovery was made in 2000. Lime is working with the operator towards a decision to commercialise the project. The licence also includes the Linerle discovery made in 2004, which is not a subject in the QPR.

April 2021: Lime signed an agreement with ONE-Dyas Norge AS (“ONE-Dyas”) to swap its 20 per cent interests in each of the licences PL263D, PL263E, and PL263F Sierra (previously known as Apollonia) in the Norwegian Sea for ONE-Dyas’ 13.3 per cent interest in PL433 Fogelberg.

The PL433 partnership is moving the discovery towards production with the submission of a Plan for Development and Operations (PDO) likely in end-2022, and production start-up potentially in 2025.

• October 2019: The Shrek discovery was made in October 2019; an independent QPR was issued in March 2020. The discovery would be assessed as a possible tie-back to the Skarv Floating Production Storage and Offloading (FPSO) facility and is progressing towards a development decision. Economic analysis of the discovery with different development scenarios to refine and optimise the development plan is underway.

In 2020, the Group stepped up from oil exploration to the next level, becoming a full-fledged oil exploration and production (E&P) company, as it achieved first oil in Oman. From 2020 to 2021, Rex’s 86.37 per cent subsidiary Masirah Oil Ltd (“Masirah”) has drilled six wells in Block 50 Oman; three of the wells are now in production while the other three exploration wells were non-commercial. The drilling results of all the wells drilled are being analysed for future exploration plans. The three Yumna production wells tested steadily over a week at rates of 20,000 barrels of oil per day in March 2021 and the production rate has since then been optimised in accordance with the reservoir management plan, aimed at maximising recovery. Gross oil production in March 2021 from the Yumna Field amounted to 12,672 stock tank barrels per day (stb/d). Masirah holds a 100 per cent interest in Block 50 Oman and is also the operator.

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