KUCHING: Hibiscus Petroleum Bhd (Hibiscus Petroleum) is pleased to announce that its jointly-controlled entity, Lime Petroleum Norway AS (Lime Norway) has been awarded five new offshore licenses in the 2013 Awards in Predefined Areas (APA 2013).
According to a press release, Ivar Aarseth, chief executive officer of Lime Norway, said, “We are very pleased to be awarded several of the licenses which we have identified using the direct hydrocarbon indicator, Rex Virtual Drilling, and look forward to working with established operators in the mature Norwegian Continental Shelf E&P arena, a well-known oil-prolific region.”
Kenneth Pereira, managing director of Hibiscus Petroleum, said, “We are delighted by the latest offer from the Norwegian government to expand Lime’s presence in Norway, barely a year after the company obtained its per-qualification as a licensee on the Norwegian Continental Shelf.
“Undoubtedly, 2014 will see more Norwegian-focused activities as we build upon the extensive groundwork performed by Lime Norway in understanding the local geology.
“Having already secured adequate financing to fulfill our work commitments for at least the next one year, we look forward to extracting value from our growing asset base in one of Europe’s most prolific petroleum basins.
“We will continue to build our presence in the country particularly as attractive fiscal terms offered under the Norwegian Petroleum Tax Act allow us to apply for a cash tax refund of 78 per cent of exploration costs annually.”
Acceptance of the award of these licenses is subject to the formal approval of Lime Norway’s board of directors.
Meanwhile, the Board of Lime Norway has also approved an increase in its stake in PL 498 located in the North Sea, from five per cent to 25 per cent. This transaction is pending the approval of the Norwegian government.
Lime Norway is a wholly-owned subsidiary of Lime Petroleum Plc. Lime Petroleum Plc is a jointly-controlled entity in which Hibiscus Petroleum owns a 35 per cent stake.
Norway is the world’s third largest gas exporter and 6th largest oil exporter with more than 5.32 billion barrels in proven oil reserves.