Swedish oil company Lundin Petroleum will farm out a 30 percent interest in production licence PL338C, offshore Norway, to Hibiscus Petroleum’s jointly-controlled entity Lime Norway.
The production licence contains the Gemini prospect which is currently being drilled with the Island Innovator rig. The well is located in PL338C approximately 10 km southwest of the Edvard Grieg field, in the Norwegian part of the North Sea.
Following this transaction, and subject to government approval, Lundin Norway will hold an operated 50 percent working interest in PL338C with Lime Petroleum holding 30 percent and OMV Norge AS 20 percent.
Lundin Petroleum owns oil and gas licences in Europe and South East Asia. The company has proven and probable reserves of 187.5 million barrels of oil equivalent (MMboe).
Hibiscus Petroleum’s Managing Director, Dr. Kenneth Pereira, said, “We have secured a meaningful equity position in an on-going project with a reputable operator. With a discovery already within the permit boundaries, we are clearly drilling in an area of high petroleum prospectivity. It shall be exciting to be involved in another discovery within this same permit and we look forward to that.”