Hibiscus’ Lime Petroleum buys 5% stake in two Norwegian blocks

by **Cals** Thu 05 Jun 2014, 20:16

Business & Markets 2014

Written by Bernama

Thursday, 05 June 2014 12:26

KUALA LUMPUR (June 5): Hibiscus Petroleum Bhd (Hibiscus Petroleum) today announced that its jointly-controlled entity, Lime Petroleum Norway AS (Lime Norway), has executed an agreement with North Energy ASA (North Energy) to acquire a five per cent stake each in PL591 and PL591B.

The transfer of the equity interest in PL591 and PL591B, located in the Norwegian Sea, to Lime Norway (35 per cent-owned Hibiscus) is subject to regulatory approval, said Hibiscus Petroleum in a statement.

Tullow Oil Norge AS is the operator at PL591 and PL591B and holds the remaining 80 per cent participating interest in both licences.

Upon completion of the acquisitions, Hibiscus Petroleum’s portfolio of
licences in Norway will increase to 16.

It added both licences were located in water depth of some 300 metres in the Halten area of the Norwegian Sea.

These latest acquisitions were made after performing in-depth technical evaluations including Rex Virtual Drilling on the production licences held by North Energy.

Exploration drilling is expected to commence in the first half of 2015.

Hibiscus Petroleum’s Managing Director Dr.Kenneth Pereira said,"Even though our net interest in these licences are small, we have an opportunity to participate in a project with a reputable operator and drill an exploration well in the next one year in Norway".

Following the capital injections totalling US$23 million made by Lime Petroleum Plc’s (Lime) shareholders in November 2013 and January 2014, together with the NOK300 million financing facility secured from Skandinaviska Enskilda Banken AB, Lime Norway has secured adequate financing to fulfil their work commitments into 2015.

Lime Norway is a wholly-owned subsidiary of Lime.