North Energy’s New Farm-in Well is Spudded

Rex International Holding Limited shared that North Energy ASA, in which the group holds an approximate stake of 5.35 percent, had entered into an agreement with Tullow Oil Norge to acquire a 10 percent stake in PL 507 on 26 June 2014. The agreement is conditional on government approval, and upon completion, the effective date of the acquisition has been set as January 1, 2014. Exploration drilling had begun on July 1, 2014 on the Lupus oil prospect in PL 507 in the North Sea.

Located about 35 kilometers south of the Oseberg field, well 31/10-1 is being drilled by the Borgland Dolphin in about 120 meters of water. Upon closure of the agreement, partners in the licence will be Tullow Oil Norge as operator with 60 percent, Explora Petroleum AS with 20 percent, Ithaca Petroleum Norge AS with 10 percent and North Energy with 10 percent. North Energy had said in its press release dated June 26, 2014 that it “sees a high probability of discovering hydrocarbons in the prospect”.

 Måns Lidgren, Chief Executive Officer of Rex International Holding, said, “We are pleased  to note that PL507 has been spudded shortly after North Energy’s proposed farm-in to the licence. We are excited about the prospects for North Energy, in which we have a 5.35 percent interest.”

Additionally the group announced that their jointly controlled entity HIREX had signed the heads of agreement (HOA) for 20 percent stake in offshore licence in Australia on July 4, 2014.

The binding agreements accord an option from 3D Oil to HIREX to acquire a 20 percent working interest in the approximately 448 square-kilometer concession VIC/P57, located in the northwest offshore oil-prolific Gippsland Basin, in exchange for use of the Rex Virtual Drilling technology to determine the best hydrocarbon prospects in the concession.