Date: 25 September 2024
Broker: Maybank Research Pte Ltd

Acquisition of OKEA’s Interest in Yme Field

Rex International’s subsidiary, Lime Petroleum, has agreed to acquire a 15% interest in the Yme Field, located in the Norwegian North Sea, from OKEA. The post-tax consideration for this acquisition amounts to USD15.65 million. This acquisition will increase Lime Petroleum’s ownership in the Yme Field from 10% to 25%.

Payment Terms

In addition to the initial payment, Lime Petroleum has committed to pay an additional post-tax consideration of USD9.2 million in 2027. This amount will be repaid in four 25% tranches, which will coincide with the completion of four pre-defined stages of the abandonment of the Yme Field.

Current and Future Production

The Yme Field is currently producing between 20,000 to 25,000 barrels of oil equivalent per day (boepd), following the completion of development wells in the second quarter of 2024. With this acquisition, Lime Petroleum’s daily production is expected to increase by approximately 3,500 boepd in 2024.

Financing and Strategic Impact

The acquisition will be financed through internal resources, and Rex Intl’s management expects that the move will enhance Lime Petroleum’s cash flow in the coming years, providing a significant boost to the company’s financial position and production capabilities.

This information is based solely on the details provided in the PDF dated 25 September 2024.