Lundin Petroleum’s wholly owned subsidiary Lundin Norway has signed an agreement to acquire Lime Petroleum’s complete Utsira High acreage position, which covers Rolvsnes in PL338C and the Goddo prospect in PL815.

Lime Petroleum is a subsidiary of Rex International Holding.

The acquisition enables the consolidation of Lundin Norway’s position in the weathered and fractured basement play on the Utsira High in the North Sea.

Following the acquisition, the company’s working interest in the Rolvsnes oil discovery will increase from 50% to 80% and the Goddo prospect from 40% to 60%.

“This acquisition also provides further commercial alignment with Edvard Grieg.”

Lundin Petroleum CEO and president Alex Schneiter said: “I am very pleased to announce the acquisition of Lime Petroleum’s working interests in Rolvsnes and Goddo, which not only further consolidates our position in one of our core areas, but also offers the opportunity to further benefit from the significant potential in this successfully tested basement play, which is unique on the Norwegian Continental shelf.

“This acquisition also provides further commercial alignment with Edvard Grieg, as we focus on using high-margin, tie-back developments to extend plateau production through the facilities beyond the current mid-2020 guidance.”

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According to the transaction, Lundin Norway will pay a $43m cash consideration to Lime Petroleum and make a further contingent payment of $2m.

The completion of the acquisition is subject to customary government approvals.

Located 3km south of the Edvard Grieg platform operated by Lundin Norway, Rolvsnes has a gross estimated resource range between 14 and 78 million barrels of oil equivalent (MMboe).

An appraisal well and production test was conducted last year, and an extended well test (EWT) is expected to be carried out at Rolvsnes in 2021.

Rolvsnes and Goddo have a collective gross resource potential of more than 250MMboe.

The companies have not disclosed the acquisition value.