LIME PETROLEUM ANNUAL REPORT 2021
Message from the CEO At the time of writing, war has broken out in Europe, we are seeing scenes in European cities we thought belonged to the past. Lime employees have directly felt the consequences of war through their families, with all the uncertainty, fear, and heartbreak that comes with war. Through all this, oil and gas prices have risen to record levels. However, this new price point comes with much uncertainty. In 2020, although war was not even remotely on the horizon, we discussed how to reduce risk and add value at times of increasing uncertainty. One of the solutions was to add production to the Lime portfolio. In 2021 we achieved our goal from the previous year of transforming Lime Petroleum from a pure-play exploration company to a full cycle exploration and production company – E and P. The purchase of 33.8434% in the Brage field is driving Lime Petroleum forward, along with the maturation of field development projects, Shrek and Fogelberg as well as our traditional exploration work. Additionally, Lime is participating in the green shift initially through a carbon storage project, and likely with further projects seeking to reduce the greenhouse gas footprint and enable sustainable offshore operations. This all means Lime’s skillsets are being expanded upon, the scope of our processes is being increased and new relationships are being forged. This is very much in line with the Petroleum Safety Authority’s 2022 focus on capacity and competence. Despite restricted personal interaction in 2021 due to the Covid pandemic, Lime managed to achieve three major
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transactions by the end of the year. The Brage transaction was agreed on with Repsol in May, quickly followed by a swap of assets with ONE Dyas, bringing the Fogelberg development into the portfolio, and capped by farming in the Gjegnalunden prospect, which closed on New Year’s Eve. Gjegnalunden, in PL867 and PL867B, is an exciting prospect adjacent to Lime’s PL818 licence. With a discovery in Gjegnalunden, a development can readily be tied back to AkerBP’s Ivar Aasen platform. Success will also de-risk other prospects in the area. Unfortunately, the Fat Canyon exploration well in the Norwegian Sea turned out to be dry after drilling late in 2021. We will be looking at how this will impact other prospects in the area. Other prospects are being worked up, with likely more exploration drilling in 2023. Two field development projects are maturing, with field development plans likely to be submitted in late 2022. The Fogelberg gas development is being worked up by the operator, Spirit, along with PGNiG as our partner. Lime traded into Fogelberg to be able to get to gas production faster than staying in Sierra. First gas is expected in 2026. The Shrek oil development will be tied back to AkerBP’s Skarv FPSO, with the first oil likely in 2025. Lime is playing an active role in the development planning, seeking to ensure safe and efficient operations with high hydrocarbon recovery.
