ANNUAL
REPORT
2022
Contents
Licence Portfolio Information .................................................................................................................................................................................................... 5
Message from the CEO ...................................................................................................................................................................................................................6
The Yme Field .......................................................................................................................................................................................................................................8
The Brage Unit ................................................................................................................................................................................................................................... 10
Sustainability and environmental commitment .............................................................................................................................................................. 11
AI-driven Seismic Inversion algorithm ..................................................................................................................................................................................12
Directors’ Report ..............................................................................................................................................................................................................................13
Annual Financial Statements ................................................................................................................................................................................................... 29
Accounting principles and notes ............................................................................................................................................................................................. 31
Auditor’s Report .............................................................................................................................................................................................................................. 62
Front page: Yme. Credit: Bitmap Repsol Norway AS
Lulworth Cove, England Photo: Karsten Eig
ANNUAL REPORT 2022
LIME PETROLEUM
Page 2 Page 3
Licence Location Lime stake Operator Other Partners Expiry date
North Sea
PL 053 B Bjørgvin Arch 33,84% OKEA ASA DNO Norge AS, Vår Energy ASA, M Vest Energy AS 06/04/2030
PL 055 Bjørgvin Arch 33,84% OKEA ASA DNO Norge AS, Vår Energy ASA, M Vest Energy AS 06/04/2030
PL 055 B Bjørgvin Arch 33,84% OKEA ASA DNO Norge AS, Vår Energy ASA, M Vest Energy AS 06/04/2030
PL 055 D Bjørgvin Arch 33,84% OKEA ASA DNO Norge AS, Vår Energy ASA, M Vest Energy AS 06/04/2030
PL 055 E Bjørgvin Arch 33,84% OKEA ASA DNO Norge AS, Vår Energy ASA, M Vest Energy AS 06/04/2030
PL 185 Bjørgvin Arch 33,84% OKEA ASA DNO Norge AS, Vår Energy ASA, M Vest Energy AS 06/04/2030
PL 316 Egersund Pool 10,00% Repsol Norge AS LOTOS Exploration and Production Norge AS,
OKEA ASA
18/06/2030
PL 316 B Egersund Pool 10,00% Repsol Norge AS LOTOS Exploration and Production Norge AS,
OKEA ASA
18/06/2030
PL 818 Gudrun Terrace 30,00% Aker BP ASA Equinor Energy ASA 05/02/2026
PL 818 B Gudrun Terrace 30,00% Aker BP ASA Equinor Energy ASA 05/02/2026
PL 820 S Northern Utsira
Height
30,00% Vår Energi ASA Aker BP ASA, Pandion Energy AS, Wintershall Dea
Norge AS
05/02/2024
PL 820 SB Northern Utsira
Height
30,00% Vår Energi ASA Aker BP ASA, Pandion Energy AS, Wintershall Dea
Norge AS
05/02/2024
PL 867 Gudrun Terrace 20,00% Aker BP ASA 10/02/2027
PL 867 B Gudrun Terrace 20,00% Aker BP ASA 10/02/2027
PL 1093 Utsira High 20,00% Harbour Energy Norge AS Petoro AS 19/02/2028
PL 1178
(2)
Oseberg Fault 50,00% OKEA ASA 17/02/2030
Norwegian Sea
PL 838 Nordland Ridge 30,00% Aker BP ASA PGNiG Upstream Norway AS 05/08/2023
PL 838 B Nordland Ridge 30,00% PGNiG Upstream Norway AS Aker BP ASA 01/03/2029
PL 1111
(1)
Frøya High 40,00% PGNiG Upstream Norway AS 19/02/2028
PL 1125 Nordland Ridge 50,00% OKEA ASA 19/02/2024
PL 1190
(2)
Grinda Graben 30,00% Harbour Energy Norge AS PGNiG Upstream Norway AS 17/02/2030
Licence Portfolio Information
(1) PL 1111 was formally relinquished 6 March 2023
(2) APA 2022 licenses awarded 10 January 2023
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LIME PETROLEUM
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Message from
the CEO
There is no business as usual for Lime, we are now a
company with two producing fields and a newly listed bond.
And with production and listing comes new responsibilities
– our see-to-duty has been greatly increased. To meet these
new responsibilities, the Lime organization expanded and
deepened. The size of the organization has now more than
doubled and we have acquired new skillsets – particularly in
the areas of HSEQ, engineering, and compliance. To effectively
use the new skills, we have needed to redefine who we are
and why we are here. Throughout 2022, the whole organization
has been involved in defining the company. This started with
identifying our vision of the future: A Net-Zero world with
an abundance of energy and prosperity. Within this vision,
Lime's mission is to challenge and inspire people to create
new ideas so that the world will be full of energy. This is
why we are here.
With a well-defined mission, we needed a management
system to ensure we can deliver. Throughout 2022 we sig-
nificantly upgraded our business management system
(BMS), working closely with DNV and ProActima to develop
a BMS that captures Lime’s way to ensure we fulfill our see-
to-duties as license holder on the NCS, as well as ensuring
that we create and capture the ideas that will result in new
energy down the road. All of us in Lime have gone through
extensive training on compliance, risk management, and
regulations. Through this process, we have grown as individual
employees and as an organization as a whole. We are very
proud that this upgrading process has culminated in Lime
recently being pre-qualified by the Ministry of Oil and Energy,
as Operator on the Norwegian Continental Shelf.
Key to our way of working is creating new ideas – we have
studied and proposed deploying new technology in field
development projects, we have defined new exploration
plays, we have actively participated in technology development,
and we have sought to define new business models and
relationships. Throughout 2022 we have employed our BMS
and had significant wins, but also disappointments. In some
cases, the disappointments are due to calculated risks, i.e.
exploration risk, in other cases, they are due to a lack of
alignment with partners or disagreement on interpretations.
Either way, we take every opportunity to learn. We believe
our wins come from having trust in each other and allowing
ideas to grow, along with strong technical work, close coop-
eration with our partners, and a proactive attitude.
Our main achievement in 2022 has been doubling Lime’s
production with the Yme transaction. Other achievements
in 2022 are the Iving/Evra acquisition with the distinct
Lars Hübert
CEO
possibility of new production in the near future; the award
of new exploration lisenses – PL1178 and PL1190 in the North
Sea and the Norwegian Sea respectively targeting new plays
in the Cretaceous; further maturing the Iroko CCS project to
position Lime firmly in the energy transition.
2023 is promising to be as exciting as 2022, with strong cash
flow, highly supportive shareholders, an upgraded business
management system, and most importantly knowledgeable
and enthusiastic co-workers.
The Brage Platform while approching it with a helicopter. Credit: OKEA ASA
ANNUAL REPORT 2022
LIME PETROLEUM
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The Yme Field
The Yme field is located in blocks 9/2 and 9/5 in the Egersund
Basin in the south-eastern part of the North Sea, Norway. The
water depth in the field area ranges from 77m to 93m.
The field reservoir contains oil (39 API gravity) in Gamma and
Beta structures. The distance between the Gamma and the
Beta structure is approximately 12 km. Situated at a depth of
3,150m beneath the seabed, the field’s reservoir comprises
the Sandnes sandstone formation of the Middle Jurassic age.
According to the Norwegian Petroleum Directorate, the
remaining recoverable oil reserves of the field are estimated
to be approx. 55 mmbo. Plateau production was first expect-
ed to be reached in Q4 2022 but now expected in mid-2023.
The Yme oil field on the Norwegian continental shelf was
discovered in 1987. The offshore field originally brought on
stream in February 1996, was in production until 2001 when
it was halted due to low oil prices. At that time, the field had
recovered 50 mmbo, or less than half of the technical recover-
able reserves.
The Yme oil field was developed and operated by Statoil, but
Talisman Energy took over operatorship in 2006. The original
field development consisted of a jack-up drilling and production
platform on the Gamma structure along with a storage, and a
subsea template on the Beta structure.
The redevelopment plan of the field was approved by the
Norwegian authorities in March 2018. The new amended
PDO (Plan for Development and Operation) for Yme (PL316
and PL316B) relates to a combination of existing and new
installations and wells.
The facilities used include the leased Mobile Offshore (jack-
up) Drilling and Production Unit (MODPU) Mærsk Inspirer.
Modifications have been made to the existing storage tank
and caisson support structure. This structure contains the
risers and provides a platform for a new wellhead module that
sits alongside the MODPU. The Beta structure is developed by
subsea oil production and water injection wells, connected to
the MODPU via a subsea production system and a production
and injection pipeline.
Lime acquired a 10 per cent stake in the Yme field from
KUFPEC Norway AS, a subsidiary of Kuwait Petroleum Corpo-
ration, in a transaction completed on 23 December 2022. The
field is being developed in partnership with Repsol Norge AS
(55 per cent) as an operator, LOTOS Exploration and Production
Norge AS (20 per cent), and OKEA ASA (15 per cent).
Yme New Development started production in October 2021.
By the end of 2022, the field was producing from eight pro-
duction wells. The average 2022 production was about 9200
barrels oil per day gross, which is lower than the expected
forecast.
Since June 2022, The Beta North drilling campaign was ongo-
ing with drilling and competition of two producers (9/2-E-1
AH and 9/2-E-3 H) and one injector (9/2-E-2 H). The 9/2-E-1
AH and, 9/2-E-3 H started production at the end of 2022. The
9/2-E-2 H injector started in January 2023. Workover and
drilling campaigns on Gamma will continue through 2023,
adding more producers and injectors to ramp up to plateau
production.
(Lime – 10 per cent)
Yme platform Credits: Bitmap Repsol Norge AS
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LIME PETROLEUM
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Brage Credit: OKEA ASA
The Brage Unit
Brage is a large oil and gas field in the northern part of the
North Sea, 10 kilometres east of the Oseberg field. The water
depth is 140 meters. Brage was discovered in 1980 and
production started in 1993. The field is developed with an
integrated production, drilling, and accommodation facility
with a steel jacket platform with 40 well slots. Oil and gas
are separated on the platform. Oil is piped via the Oseberg
platform through the Oseberg Transport System (OTS) to
the Sture terminal. Gas is transported through Statpipe to
Kårstø. The average 2022 production was about 7400 barrels
oil equivalent per day gross from around 20 oil producers and
4 water injectors. This is lower than the expected forecast.
According to the Norwegian Petroleum Directorate, there are
2.5 million Sm3 of oil equivalent or 15.7 mmboe of remaining
reserves in the Brage Field. Accordingly, giving Lime
Petroleum net 11.028 mmboe proven and probable reserves
at the end of 2022. Based on the gross production on the
Brage Field in 2022, production averaged 2,465 boepd net
to Lime.
The Brage South well, concluded in July 2022 is now planned
to be sidetracked to a Fensfjord Formation production
target. In the Talisker area, drilling of well A11 with multiple
targets was initiated.
(Lime – 33.8434 per cent)
Sustainability and
environmental commitment
Lime is working to be part of the solution to the pressing
environmental challenges, helping to ensure benefits both for
today and for future generations. The oil and gas sector as an
important global industry presents an opportunity to have a
meaningful and sustainable impact, while playing a key role in
providing the energy that is essential for the growth of strong
economies.
We recognize that to achieve sustainable development, we
need to focus on all our stakeholders, from suppliers to business
partners and investors as well as engage with our local com-
munities. We aim to manage the impacts of our operations by
emphasizing environmental change mitigation, health and safety,
and human rights protection.
While supporting efforts to reduce negative impacts on the
environment, Lime continued with its Carbon Capture and
Storage (CCS) project started in September 2021. Throughout
2022, subsurface studies were conducted in collaboration with
project partners. The project was named Iroko after an
African tree with the capability of capturing CO
2
from the
atmosphere and transforming it into limestone.
The area of interest was identified by assessing reservoir and
seal parameters, storage capacity, and risk. Three potential
storage sites were evaluated using maps and static and
dynamic modeling. As a result of the commercial evaluation, a
viable business case was identified and approved. The project
will continue into the nomination and application for a storage
site in 2023.
The carbon capture and storage project will contribute to
the reduction of CO2 volumes in the atmosphere which is
essential to achieving the climate targets that limit warming
to 1,5°C. Byaddressing climate change in our operations,
Lime seeks to support The United Nations Development
Goals (SDG) in particular those related to Climate Action
(SDG13), Responsible Consumption and Production (SDG 12),
Industry Innovation and Infrastructure (SDG 9), and Afford-
able and Clean Energy (SDG7).
Westcoast Norway Photo: Victoria Fondenær
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LIME PETROLEUM
Page 10 Page 11
From EAGE Conference Presentation, Tumen’
AI-driven Seismic Inversion
algorithm
As part of our engagement in supporting technological
development in our local community, Lime is sponsoring
a Pre-Stack Solutions-Geo AS project together with the
Research Council. The project aims to develop an AI-based
pre-stack seismic inversion algorithm with a radically new
solution approach expected to benefit the estimation
accuracy of rock properties, increase the probability
of direct hydrocarbon indication and reduce the man hours
and processing costs.
Directors’ Report
The global energy picture has been scrambled by Russia’s
war in Ukraine. One year after the start of the conflict,
Europe is still feeling the consequences of the war it created
driving oil and gas prices to unseen highs. The gas market
volatility reverberated across energy markets the world over
and changed the pace of the energy transition. Attention was
brought to market independence, setting a new light on suppliers’
reliability while stressing the need to look for alternative
sources of energy. The world is creating a new dynamic where
the search for renewables is supported by the continued safe
supply of hydrocarbons. Lime Petroleum AS has drawn upon a
strategy for a balanced portfolio securing the oil and gas supply
while contributing to the net zero environmental goals.
Lime’s 33.8434 per cent share in the Brage Unit, followed by
theacquisition of a 10 per cent interest in the Yme Field in
December 2022, consolidate the company’s position as a full-
cycle exploration and production player on the Norwegian
Continental shelf. In a transaction with MOL Norge AS,
Lime purchased a 40 per cent interest in PL820S and
PL820SB, adding a development project to the portfolio.
Later in the year, Lime farmed down 10 per cent of the
licenses to Vår Energi ASA.
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LIME PETROLEUM
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Lime Petroleum AS (hereinafter referred to as Lime) is
a Norwegian oil company owned by Rex International
Investment Pte Ltd (Rex; 91.65 per cent share capital) a whol-
ly owned subsidiary of the Singapore-listed Rex International
Holding Limited, and Schroeder & Co Banque SA (Schroeder;
8.35 per cent share capital). Lime`s office is located at
Skøyen in Oslo, Norway.
Lime`s core business is to explore for, develop and produce
oil and gas on the Norwegian Continental Shelf. Having
acquired ownership in oil producing fields, Lime stands out as
a full-cycle exploration and production company.
Operational review
The acquisition of 10.0 per cent interest of the licenses PL316
and PL316B* that constitute the producing Yme Field oper-
ated by Repsol Norge AS in August 2022 was the highlight of
the company`s activities in 2022. Making another significant
transaction after the purchase of 33.8434 per cent interest
in the Brage Field in 2021, the company generates cash flow
from two oil-producing assets.
On 10 August 2022, Lime signed a sales and purchase
agreement with KUFPEC Norge AS to acquire their 10.0
per cent interest in the Yme Field. The transaction involv-
ing a consideration of NOK 670.8 million, was approved
by the Ministry of Petroleum and Energy and the Ministry
of Finance on 24 November 2022, and completion took
place on 23 December 2022. The transaction had the
nature and financial effect of a business combination by way
of accounting treatment, for which NOK 313.5 million was
recognized as goodwill.
On 31 October 2022, Lime closed a transaction with MOL
Norge AS. In this transaction Lime purchased a 40 per cent
interest in PL820S and PL820SB, adding an additional
development project to the portfolio. Later in the year, Lime
farmed down 10 per cent of the licenses to Vår Energi ASA,
with Vår becoming the Operator of the license. The sales and
purchase agreement with MOL Norge AS was signed 14 April
2022. The sales and purchase agreement with Vår Energi ASA
was signed 30 June 2022. The transfers were approved by the
Ministry of Petroleum and Energy 22 September 2022.
Through 2022, the Brage field for the most part produced
well. OKEA ASA successfully took over operatorship of Brage
from Wintershall DEA 1 November 2022. No serious HSE
incidents occurred during 2022. The scheduled maintenance
stop was postponed from May 2022 to September 2022.
Greece, Corinth Photo: Adam Spitzmüller
No significant issues with the facility were found during the
maintenance stop, however bringing production levels back
up after the shutdown proved to be more time consuming
than anticipated, especially for gas production. The production
efficiency for December 2022 was back up to pre-shut down
levels at 98 per cent. The Brage South well was concluded in
July 20 days ahead of schedule, and the targets were found
to be dry. The well is now planned to be sidetracked to a
Fensfjord Formation production target in Q1 2023. After
the maintenance stop, drilling of the A-11 well with multiple
targets in the Talisker area (proven in 2021) was initiated.
Adding 10 per cent share in the Yme Field to the Lime port-
folio augments the company`s oil production. Throughout
2022, Yme went through an extended commissioning
process due to several unexpected shutdown periods. The
field was shut in for most of the month of September 2022. As
a result of this, the overall production volumes on Yme were
1/3 of the forecast for the year and production drilling from
the Yme MODPU (Mobile Offshore Drilling Production Unit)
was delayed. Plateau production initially expected to be
reached in Q4 2022, is expected in mid-2023. Yme production
improved significantly through December 2022, reaching a
monthly average of 14,000 bopd (barrels of oil per day), from
4 wells with a peak production level reached late in December
2022 of 29,680 bopd from 8 wells. Drilling on the Beta
structure concluded at the end of the year, while drilling on
the Gamma structure from the Yme Inspirer (MOPU) rig is
ongoing and will continue in 2023 with three further wells.
The license partnership on PL433 (Fogelberg) decided to
relinquish the license rather than move forward with a PDO
(Plan for Development and Operation) in 2022. The license
was fully impaired by the end of 2022. As a result of the high
risk/high reward well on PL937 and PL937B (Fat Canyon)
being drilled late 2021 and which was found to be dry, the
partners in the licenses approved relinquishment in Q2 2022.
The licenses were consequently written down in Q3 2022.
Similarly, PL1111 was decided to be relinquished and fully
impaired by the end of 2022.
As part of the green transition, Lime is participating in a Joint
Industry Project aiming at securing a CCS (Carbon Capture
and Storage) license on the Norwegian Continental Shelf.
Lime sees a growing market for carbon storage, which aligns
with Lime’s technical skills and business interests. Lime is
also actively participating in projects to reduce CO2 emis-
sions from operations in which Lime is involved.
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LIME PETROLEUM
Page 14 Page 15
To accommodate the increased portfolio, Lime has upgraded
the business management system during 2022 and has
further strengthened the team with technical and financial
competency.
Lime Petroleum AS is a non-operator and not directly
involved in the execution of offshore operations on a day-to-
day basis. However, by becoming a partner in the Brage
Field in 2021, and in Yme Field formally as of 1 January 2022,
the company engages in dialogues with the operators and
partners to ensure that all necessary steps are taken to pro-
tect offshore personnel.
Through 2022, the industry has seen significant uncertainties
regarding global political and economic stability and
experienced oil and gas prices reaching levels never seen
before. Even though the energy markets seem to have
stabilized into 2023, the level of prices going forward is still
subject to uncertainty. The future remains uncertain.
Subsequent Events
On 10 January 2023, Lime was awarded two additional
licenses in the APA2022 licensing round. 50 per cent
participating share in the licens PL1178 (Palmehaven) and
30 per cent participating share in the license PL1190 (Taco).
The license PL1178 is adjacent to the Brage Area and could
potentially add valuable additional resources to Lime`s
producing asset.
On 10 January 2023, Lime successfully raised NOK 250 million
through the tap mechanism in its existing Senior Secured
Bond. After the tap issue was carried out, the total outstanding
amount is NOK 1 200.0 million. The settlement took place on
18 January 2023. The bonds were issued at 99.25 per cent of
the nominal amount.
On 20 January 2023, Lime established an oil price hedging
program in order to reduce the risk related to oil price
fluctuations. Lime has, effective from 1 February 2023, a
hedging program based on put options that will protect
the company from significant reductions in crude oil prices
through to January 2024. The crude oil production was
hedged at strike price of 35 USD/bbl. and USD 0.45 average
cost per barrel totaling the option premium to USD 216,000.
On 3 April 2023, the settlement for the Yme transaction was
completed and the final settlement amount of USD 570.9
thousand was paid.
On 10 February 2023, Lime announced that the PL867
Gjegnalunden well drilling operation in which Lime holds a
20 per cent interest, was completed and resulted in a minor
discovery which will be evaluated for commerciality. The
work with the well result will be continued to identify
further resources in PL867, and to also evaluate these
results against the prospectivity in the neighboring PL818
license with the Orkja prospect in which Lime has a 30 per
cent share.
On 14 February 2023, Lime renewed the Directors` liabil-
ity insurance effective from 15 February 2023 expiry date 14
February 2024. The insurance amount was increased.
On 22 February 2023, Lime signed an agreement to
commence a CCS project. The 2023 budget indicates approx.
NOK 10 – 12 million for Lime.
On 1 March 2023, the Ministry of Petroleum and Energy
granted 6 – months extension for the licenses PL818 and
PL818B. New drill or drop decision is to be taken by 5 August
2023.
One – year extension of the license PL838B was approved by
the authorities on 16 March 2023. New drill or drop decision
is to be taken by 1 March 2024.
The partners in the license PL1111 (Kings Canyon) have
decided to relinquish the license, the drill or drop date was 19
February 2023. Based on the decision of relinquishment, the
license was written down in 2022 by book value NOK 8.2 million.
The after-tax effect (loss) on the net result was NOK 1.8 mil-
lion. The Ministry of Petroleum and Energy was notified 3 Feb-
ruary 2023, and the authorities` approval for relinquishment
of the license was received 6 March 2023.
Following these events affecting the license portfolio the
company has interests in 21 concessions, of which 6 of the
licenses are related to the producing Brage Field and two of
the licenses are related to the oil producing Yme Field.
On 28 March 2023 Lime has prequalified as an operator on
the Norwegian Continental Shelf.
On 3 April 2023, Lime established a currency hedge program
to protect for events triggering volatility in currency markets.
A currency hedge based on put options with strike price 9.25
Asian style and a monthly volume of 4.3 MUSD 12 months
coupons was made. The hedge will shield the company from
significant unfavorable NOK/USD changes through March
2024. The option premium amounted to NOK 4,450,000.
On 17 April 2023, Lime successfully raised NOK 50 million
through the tap mechanism in its existing Senior Secured
Bond. After the tap issue was carried out, the total outstand-
ing amount is NOK 1 250.0 million. The settlement took place
on 21 April 2023. The bonds were issued at 99.0 per cent of
the nominal amount.
Rex Virtual Drilling
Lime has a strong focus on technology. Lime has a licence
agreement with Rex Technology Investments Pte Ltd granting
access to use their proprietary technology Rex Virtual
Drilling (RVD). RVD uses standard seismic data to
differentiate between liquid hydrocarbons and water in
the subsurface reservoirs by analysing the dispersive
properties of the resonant seismic waves. The company
uses the RVD technology as a de-risking tool and, to provide
further evidence of the prospectivity of a given area of
prospect. Rex Technology Investments Pte Ltd is a wholly
owned subsidiary of Rex International Investments
Pte Ltd.
Intra-company cooperation
The Rex Group has three E&P companies; Lime Petroleum
AS in Norway owned 91.65 per cent, Masirah Oil Ltd in
Oman owned 91.81 per cent and Pantai Rhu Energy
SDN BHD in Malaysia owned 100 per cent.
Masirah Oil Ltd is the operator of Block 50 with 100 per
cent participating interest offshore located in Gulf of
Masirah, east of Oman. The Lime team has provided support
on subsurface mapping and interpretation for Masirah since
before the Yumna field achieved first-oil in 2020. In 2022
Lime provided subsurface support for the planning and
execution of the Yumna-4 well. Lime has also provided
support for further exploration in Block 50.
Management and Board of Directors
Nicolai Alexander Sebastian Bonnevier stepped down as
a Lime board member in 2022. Bonnevier confirmed his
resignation from the Board of Directors in Lime 11 March
2022. Schroeder has waived their dedicated board position
in Lime notified by letter received 16 February 2022.
At the signing of this report the Board of Directors consist of
the following members:
Svein Helge Kjellesvik Executive Chairman
Peter Nikolaus Eckhard Oehms Director
Christopher David Atkinson Director
The tasks of the board are regulated by the Companies Act,
the company’s articles of association, and a board instruc-
tion. The board employs the CEO and the board has devel-
oped instructions and authorizations for the CEO. Board
members receive compensation according to their individual
role. The compensation for board members is not result-
dependent. None of the board members have an agreement
for a pension scheme or severance pay from the company,
beyond the agreements that employees have as part of their
employment relationship in the company. Information about
compensation paid to the board is presented in note 23 in the
annual financial statements. The General Assembly nomi-
nates and elects members of the board.
Health Safety, Environment, and Quality (HSEQ)
and equal opportunity
Health, safety, environment, and quality (HSEQ) is an integrated
part of all our business operations, in our day-to-day work and
ensuring our see-to-duty activities.
Lime is aware that the operations of the company could
unintentionally, result in a negative impact or pollute the
external environment. The company together with its joint
venture partners work actively on measures to prevent and
mitigate potential negative impacts on the environment. Lime
recognizes the changing attitudes towards the oil and gas
industry as a whole and works actively to address issues
related to climate change impact, human rights, inclusion, and
the like.
Becoming a production company highlights the importance
that Lime constantly places on HSEQ. Operators’ managing
and exploration drillings in which Lime participates are closely
monitored to ensure compliance with the HSE regulations.
Lime has been an active partner in the Brage Field since 2021
and followed up closely the operatorship transferring process
from Wintershall DEA Norge AS to OKEA ASA effective as of
1 November 2022.
Lime added a dedicated HSEQ expert to its team in spring
2022. During 2022 the Business Management System (BMS)
has been considerably updated and further developed to
cover areas such as partner on non-operated producing fields,
development projects and exploration phase as operator on
the NCS. The BMS contains supporting processes such as
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LIME PETROLEUM
Page 16 Page 17
finance, legal and procurement, risk management, information
management, HR and HSEQ. The BMS system entails proce-
dures and routines related to financial reporting to ensure
sufficient control mechanisms to comply with stock exchange
regulations, as applicable. Further, Lime has strengthened its
cybersecurity performance to avoid incidents. Information and
cybersecurity continue to be an area of risk to the industry and
remains a key priority. Lime has further developed and trained
the Emergency Response Team with focus on handling emer-
gency situations as non-operator on the NCS.
In addition, Lime has updated the risk management system and
invested in a risk management tool that enables robust and
systematic risk handling and identifies appropriate mitigation
actions. Risk assessments include a wide range of areas such
as strategic, financial, operational, compliance, HSE, fraud and
corruption, litigation, and cybersecurity risks. Under the new
Norwegian Transparency Act, Lime has started the preparation
to carry out due diligence activities to ensure that the company
is operating responsibly, respecting both human rights and
decent working conditions in its operations throughout the
whole supply chain.
As of 31 July 2022, Lime has been subjected to the act related
to enterprises’ transparency and work on fundamental hu-
man rights and decent working conditions (Transparency Act).
The law requires Lime to carry out due diligence in accordance
with the OECD Guidelines for Multinational Enterprises and
a duty to account for the due diligence process. In 2022 Lime
started the process of embedding respect for human rights
and decent working conditions into our management system
and policies. We established a new human rights policy and
updated our code of conduct and whistleblowing policy. The
due diligence process is being integrated into existing
procedures on HSEQand risk management. Lime is also
in the process of identifying human rights risks in our
sphere of business and identify mitigating measures to
manage these. The result of the process will be published
and easily accessible on our website within the 30 June
2023. We acknowledge that the due diligence process
is ongoing, and we will strive to respect and support
human rights and decent working conditions in all our
operations, partnerships, and supply chain relationships.
At the end of 2022, the company had a total of 18 employees
balanced between 6 women and 12 men, spread across 8
different nationalities. Accounting, tax and legal services
are outsourced and contracted from professional service
providers. The company hires support services from consult-
ants usually on temporary short-term contracts.
Lime practices equal rights and opportunities between
gender with respect to employment, wages, and professional
development. Factors determining wages are work area,
seniority, skills, and education. Vacant positions are filled on
a gender-neutral basis. The company follows the provisions
of the Norwegian Equal Opportunities Act always following
no discrimination policies. At present, there are no female
directors on the Board.
Lime's governance principles and objectives are based on
the recommendations of the Norwegian Code of Practice for
Corporate Governance (www.nues.no).
The working environment in the company is good and efforts
are made for continuous improvement. Lime employees
practice a combination of working at the office or work-
ing from home. In September 2022, the company moved to
newly renovated offices to add more space to its growing
number of employees. Furthermore, a sustainability report
for the Lime office was performed by external consultants
for estimation of the environmental and carbon footprint.
The report focused on energy consumption, water, and waste
reflecting Lime’s share for the building Skøyen Atrium. The
power supply is based on electrical energy and district heating.
The greenhouse gas accounting was prepared in accordance
with the international standard, the Greenhouse Gas Proto-
col Initiative (GHG Protocol). Absence due to illness during
2022 was 2.0% compared to 3.0% in 2021. None of the
company’s employees have been injured or caused damage
to property of any kind.
Lime Petroleum has its offices in a modern corporate
complex at Drammensveien 145a, at Skøyen Oslo.
Annual Financial Statements
(2021 figures in brackets)
Pursuant to § 3-3 of the Norwegian Accounting Act, it is
confirmed that the accounts have been prepared on the
assumption that Lime Petroleum AS is a going concern, and
the board confirms that this assumption continues to apply.
In 2022, the company delivered revenues from sale of crude
oil and gas amounting to NOK 947.5 million. The revenue
in 2021 (NOK 160.7 million) resulted from the purchase
transaction related to the acquisition of 33.8434 per cent
share in the Brage Field. The purchase gain in 2021 was a
consequence of the oil market moving favorably compared
to the market outlook at the time of the Brage bid.
Stevns Klint, Denmark Photo: Karsten Eig
Brage
Yme
17
mmboe
33%
67%
Reserves and Resources
ANNUAL REPORT 2022
LIME PETROLEUM
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On 10 August 2022, Lime signed an agreement with KUFPEC
Norway AS to acquire 10 per cent share in the oil producing
Yme Field. The transaction was approved by the Ministry
of Petroleum and Energy and the Ministry of Finance 24
November 2022, and the completion took place 23 Decem-
ber 2023. The purchase resulted in a total goodwill of NOK
313.5 million recognized as non-current asset in the balance
sheet. Through its purchase of the Yme share of 10 per cent,
the company acquired its second recurrent cash-generating
asset.
Operating expenses totaled NOK 960.2 million (NOK 89.2
million). The increase in cost is mainly due to Brage operat-
ing cost NOK 455.9 million (no operating cost in 2021) and
depreciation NOK 180.0 million (NOK 1.6 million) as a result
of Lime acquiring 33.8434 per cent in the Brage Field in
2021. Net impairment following the relinquishment of
PL937 (Fat Canyon NOK 79.9 million), PL433 (Fogelberg
NOK 144.1 million) and PL1111 (Kings Canyon 8.2 million)
amounted to a total of NOK 232.2 million (NOK 8.7 million).
The increase in Other operating expenses NOK 44.0 million
(NOK 13.1 million) was mainly related to insurance and incre-
mental use of consultants. Exploration expenses NOK 31.2
million (NOK 29,9 million in FS) and Payroll and related cost
NOK 36.1 million (NOK 35.8 million) were kept at same level
as the year before.
Net financial costs in 2022 were NOK 133.5 million (NOK
33.6 million in 2021). The high-level financial cost in 2022
compared to 2021 was primarily related to the senior
secured bond issue, at year-end amounting to NOK 950 mil-
lion (NOK 500 million in 2021) and the shareholder loan facility.
The interest-bearing debt was NOK 1 055.4 million at the
end of 2022 compared to NOK 583.5 million end of 2021.
The Yme purchase prompted the establishment of a series of
bonds up to the maximum amount of NOK 1 250.0 million,
put in place 4 July 2022. By the end of the year, the initial bond
issue amount of NOK 950 million was released. Former
bond of NOK 500 million was repaid in July 2022. The loan
facility agreement with the company`s shareholder Rex
International Investments Pte Ltd (“Rex”), had a balance of
NOK 152.1 million including interest end of 2022 (NOK 93.4
million end of 2021).
Loss before taxes was NOK 147.4 million (profit of NOK
37.9 million in 2021). Tax income amounted to NOK 66.9 mil-
lion (NOK 81.8 million). The company’s tax refund related to
the 2021 activity received in 2022 amounted to NOK 355.5
million. The tax refund earned in 2022 expected paid out in
2023, is calculated to NOK 556.2 million.
Loss for the full year amounted to NOK 80.5 million while
there was an annual profit amounted to NOK 119.7 million
in 2021.
Reference is made to separate report published at Lime
web site regarding the reportable payments according to
the Norwegian Accounting Act Section § 3-3d and Securities
Trading Act § 5-5a which specifies that companies engaged
in activities within extractive industries shall annually pre-
pare and publish a report containing information about their
payments to governments at country and project level.
Investments
During the year, the cash flow from investing activities
amounted to NOK 1 098.1 million (NOK 575.9 million) of
which the bigger part was linked to the Brage infill drilling
campaign (NOK 428.5 million) which included the drilling of
A31/4 A – 13C within the Brage field area enhancing under-
standing of Fensfjord formation, and the acquisition of the
Yme share of 10% (NOK 538.6 million). The Brage decom-
missioning security established in 2021 of NOK 84.5 million
was increased to NOK 87.5 million in 2022. The Yme trans-
action has been determined to constitute a business com-
bination and has been accounted for using the acquisition
method of accounting as required by IFRS 3. The capitalized
cost related to exploration and evaluation activity amount-
ed to NOK 118,1 million (NOK 126.4 million in 2021). The
exploration and evaluation activity cost are mainly composed
of studies related to PL838 Shrek and PL433 Fogelberg, both
prospects aiming for a PDO (Plan for Development and
Operation) unfortunately not reached in 2022, G&G and
engineering work on the basement reservoir on PL820S
Iving, and preparations for the PL867 Gjegnalunden well
operation end of 2022.
Financing
As a result of the Yme acquisition the company reshaped
its financing. The current borrowing base is the three-year
senior secured series of bonds up to a maximum amount of
NOK 1 250.0 million with different issue dates established
on 4 July 2022. The initial bond issue in 2022 amounting to
NOK 950 million was released in three tranches. On 4 July
2022 a partly release of NOK 500 million was made for re-
payment of the existing senior secured bond loan of NOK 500
million, the repayment of the bond was repaid in full pursuant
to the applicable provisions according to bond terms “Early
Redemption” and “Make Whole” settlement. On 3 October
2022, the NOK 100 million reverse greenshoe auction was
carried out, no offers were made in the auction and the green-
shoe amount was transferred to Lime 6 October 2022. The re-
lease of the final NOK 350 million was given at Yme closing 23
December 2022. The conversion rights in relation to the
put option and call option set out in the Bond Terms are
considered to be embedded derivatives but evaluated to be
immaterial so not bifurcated and accounted for separately.
The current bond of NOK 1 250.0 million was listed on Oslo
Stock Exchange 27 September 2022 approximately 3
months after the issuance of the bonds.
Lime entered on 1 December 2022 into two crude oil pur-
chase and sales agreements with Shell International Trad-
ing and Shipping Company Ltd (“Stasco”) for Brage and
Yme respectively. The contract periods are commencing on
1 January 2023. Stasco agreed to make advance payments
under the contracts up to USD 30 million in aggregate. Any
advance payments will be set of against payments made for
cargoes lifted in the period April to November 2023. Lime
has received advance payments from Stasco up to the maxi-
mum level and recognized these as current liabilities in the
balance sheet.
The company strengthened its capital structure by an
additional shareholder loan from its shareholder Rex of USD
5 million on 20 December 2022. Conditional to the bond,
the shareholder loan agreements still stand. The loan facil-
ity agreements had a balance of NOK 152.1 million on 31
December 2022. By the amendment to the loan facility
agreements dated 20 December 2022, the maturity date
was further extended to 31 December 2025.
The share capital was NOK 216.9 million at the year-end
of 2022 compared to NOK 130.3 million in 2021. In Decem-
ber 2021, the company strengthened its capital structure
by a capital injection from the existing shareholders of
NOK 200 million. The capital increase was made through a
combination of cash contribution and conversion of debt.
The share capital was increased from NOK 130,320,000 to
NOK 216,900,087 by issuing 86,580,087 new shares with a
nominal value of NOK 1, - per share, at a subscription price of
NOK 2.31 per share. At the same time, the company`s debt
to shareholder Rex of NOK 72,000,000 was set-off as capi-
tal contribution and converted into equity capital. The capital
increase was registered in the Register of Business Enter-
prise 21 January 2022.
After the completion of the share capital increase in
December 2021, Rex International Investments Pte Ltd
holds 91.65% (previously 90%) of the shares in the com-
pany and Schroder & Co Banque SA holds 8.35% (previously
10%) of the shares in the company. The distribution of the
shareholding remains unchanged at the year-end 2022.
The total equity was NOK 367.5 million at the year-end of
2022 compared to NOK 448.0 million in 2021 as an outcome
of the 2022 annual result.
Risk factors and risk management
Lime Petroleum AS is subject to controllable and uncontrollable
risks associated with the oil and gas industry and operations.
Companies operating in the oil and gas are exposed to a
variety of operational, financial, and external risks which it
may not be possible to eliminate completely. The company
is focusing on identifying risks, implementing preventive
measures, and mitigating effects of such risks. The manage-
ment in Lime works closely with its main shareholder and
parent company Rex, to develop a risk management strategy
and framework to enable the management to prevent events
and to handle them effectively.
Lime has established internal procedures and system for
ethical guidelines and social responsibility policy. In 2022,
the company supplemented its ethical guidelines by estab-
lishing Human Rights policy as a part of being compliant with
the new Transparency Act entered into force on 1 July 2022.
Preparatory work for the Transparency Act has been ongoing
by conducting a due diligence assessment report to be
published on 30 June each year. Lime has applied IT policies
to ensure IT security and cybersecurity risk. Lime initiated
an IT audit performed by EY conducting a cyber program
assessment (CPA) for the company in 2021. No significant
risks were uncovered; however, Lime has implemented
suggestions for improvements and is constantly looking for
optimal solutions.
Lime has previously, as a pure exploration company, to a
certain extent been exposed to exchange rate fluctuations
as exploration operations are partly in foreign currency,
primarily in USD. The company has also been exposed to
changes in market interest rates, as its financing facilities
has variable rate terms (NIBOR). In 2021, the company
acknowledged a higher level of operational, financial, and
external risk exposure as a consequence of becoming a
partner of the oil and gas producing Brage field and ex-
panded loan obligations. The recognition of risk exposure at
an even higher level was confirmed by the Yme transaction in
2022.
Operational risk
Lime recognizes the risks associated with the operations of
the company`s operational assets. The regulations of activities
on the Norwegian Continental Shelf (NCS) provide the
framework for handling these risks, and Lime intends to act
as an active and responsible partner supplementing technical
ANNUAL REPORT 2022
LIME PETROLEUM
Page 20 Page 21
expertise in all aspects of the operations. However, drilling,
development, production, and decommissioning activities
will never be risk-free and there will always be a risk for a ma-
jor operational incident to occur.
Furthermore, there are risks related to the future production
of oil and gas which is dependent on the ability to find or
acquire reserves and resources, and to develop them. The
company`s assets are non-operated and there will be risk
associated with third-party contractors or operators. Also,
costs related to exploration and development projects are
uncertain.
Through 2022, the Brage field for the most part produced
well. OKEA ASA successfully took over operatorship of
Brage from Wintershall Norge AS 1 November 2022. No
serious HSE incidents occurred in 2022. The scheduled
maintenance stop was postponed from May to September.
No significant issues with the facility were found during the
maintenance stop, however bringing production levels back
up after the shutdown proved to be more time consuming
than anticipated, especially for gas production. Throughout
2022, Yme went through an extended commissioning pro-
cess due to several unexpected shutdown periods. The field
was shut in for most of the month of September. As a result
of this, the overall production volumes on Yme were 1/3 of
the forecast for the year and production drilling from the
Yme MOPU
Lime works together with the operator to establish risk
mitigation actions to reduce the possibility of operational
incidents occurring. When participating in the drilling
of an exploration well on the Fat Canyon prospect in the
Norwegian Sea licenses PL937/B in 2021, Lime conducted
a review of the operator’s Health, Safety, Environment, and
Quality (HSEQ) management system in advance of the
drilling to verify that there were no missing elements and
compliance to relevant HSEQ regulations.
Commodity price risk
Becoming a partner of the oil and gas producing Brage
Field in 2021 and a partner of the oil producing Yme
Field in 2022, the company is exposed to market fluctuations
in commodity prices influencing the company`s revenues.
Commodity price risk represents one of the most notable
risks for the company going forward. In order to reduce
the risk related to oil price fluctuations, the company
has established an oil price hedging program.Lime has,
effective from 1 February 2023 a hedging program based on
put options that will protect the company from significant
reductions in crude oil prices through January 2024. The
crude oil production was hedged at strike price of 35 USD/
bbl. and USD 0.45 average cost per barrel totaling the
option premium to USD 216,000.
Financial risk
In addition to the company being exposed to market
fluctuations in commodity prices, Lime will be exposed to
risks related to foreign exchange rates and interest rates.
Currency risksarise as the multi-currency cash flows in the
company. The company`s revenues from sale of hydrocar-
bons are primarily in USD. Lime is also exposed to foreign cur-
rency risk related to its operating and capital expenditures.
To protect from events triggering volatility in currency mar-
kets, Lime established a currency hedge on 3 April 2023. The
hedge program is based on put options with strike price 9.25
Asian style and a monthly volume of 4.3 MUSD 12 months
coupons. The hedge will shield the company from significant
unfavorable NOK/USD changes through March 2024. The
option premium amounted to NOK 4,450,000.
The company`s interest risk arises from its interestbear-
ing borrowings involving variable rate terms (NIBOR). The
company`s current borrowing base is the senior secured
series of bonds up to a maximum amount of NOK 1 250.0
million with different issue dates established on 4 July 2022.
The bonds bear an interest rate of 3 months Norwegian inter-
bank offered rate ("NIBOR") plus margin of 9.25 per annum.
Interests and redemption of bonds is repayable in quarterly
instalments, with first repayment in July 2023. The final ma-
turity date of the bonds is 7 July 2025.
Lime has stock listed bonds at the main list at Oslo Børs
and as such, the company must be compliant with the Mar-
ket Abuse Regulations (“MAR”) and the obligations there
in. Lime implemented a project in the process to establish
routines to fulfill the regulatory duties according to MAR.
The process is in its final phase implementing internal rou-
tines, procedures, and guidelines in Lime Business Manage-
ment System. Lime has increased the employees` aware-
ness of the responsibility that the possession of inside
information entails and the consequences of any misuse of
such information.
The company considers its credit risk to be low, since its li-
cense partners are creditworthy oil companies and cash, and
cash equivalents are receivables from banks.
Lime is focused on active risk management concentrating
on liquidity, and insurance. The company has insured its liabili-
ties related to exploration and production activities on the
NCS in line with industry best practices and has offshore
insurance programs covering the following risks (non-
exhaustive):
• loss of production income
• physical damage to assets
• well control
• third-party liability
The company stresses focus on liquidity and the company’s
financing needs are continuously monitored to ensure
appropriate funding. Liquidity risk is the risk that the com-
View from Brage platform. Photo: OKEA ASA
ANNUAL REPORT 2022
LIME PETROLEUM
Page 22 Page 23
The Board of Directors of Lime Petroleum AS
Oslo, 30 April 2023
Lars B. Hübert
CEO
Svein H. Kjellesvik
Executive Chairman
Christopher D. Atkinson
Director
Peter N. Eckhard Oehms
Director
pany will not be able to meet its financial liabilities when
they become due. Lime develops short-term (12 months)
and long-term forecasts to plan its liquidity. These forecasts
are updated regularly for various scenarios, and form part of
the decision basis for the company’s management and board.
The company’s future capital requirements depend on many
factors, and the company is closely monitoring the need for
funds to fulfil its commitments related to exploration and
development programs associated with the company`s
license portfolio. It is a possibility to reduce future commitment
by withdrawing from a license. The 2023 commitments will
be financed by the revenues from Brage and Yme production
and the tax refund for 2022. (For further information refer
to note 10 Tax). No further capital injection or loans are budg-
eted.
For further information refer to Financial Risk Management
described in Note 21.
External risks
Lime Petroleum AS is a non-operator and not directly in-
volved in the execution of offshore operations on a day-to-
day basis. However, as becoming a partner in the Brage Field
in 2021 and a partner in the Yme Field formally as of 1 January
2022, the company will take part in the dialogues with the
operators to ensure that all necessary steps are taken to
protect offshore personnel against any circumstances that
may have an impact on the working conditions.
The business environment in which the company operates
can change rapidly. In light of the lessons learned from the
global pandemic which took hold in 2020 and continued for
a long-time creating challenges for the oil industry, Lime
continues to be vigilant following all circumstances with the
objective of making sure necessary measures are taken to
protect staff and operations.
Russia`s invasion of Ukraine, which commenced in February
2022 involved material influence on the oil industry. Through
2022, the industry has seen significant uncertainties regard-
ing global political and economic stability, and experienced
oil and gas prices reaching levels never seen before. Even
though the energy markets seem to have stabilized into
2023, the level of prices going forward is still subject to
uncertainty. The extent to which this impacts the company`s
results will depend on future developments and thus diffi-
cult to predict. Lime Petroleum continues to take necessary
steps to ensure that the company remains financially sound.
On 8 April 2022, the Ministry of Finance put forward the Gov-
ernment’s new tax proposal to the Parliament. The tax pro-
posal was passed by the Parliament before the summer 2022
and took effect as of 1 January 2022. The new tax regime will
have positive effects for Lime.
Lime has a potential risk exposure from the response to cli-
mate change and ESG initiatives. As an oil and gas producing
company, Lime has an inherent risk related to the rise in at-
mospheric carbon dioxide, which in turn has contributed to a
warming of the climate system. To mitigate this risk, Lime is
actively participating in the Brage Climate Response initia-
tive to electrify the field by the use of windmills. Lime is also
a partner in the Carbon Capture and Storage project which
aims to permanently store CO2 captured from industrial
processes.
Outlook
Lime Petroleum AS continues to stay focused on its business
strategy increasing the assets portfolio, to achieve an even
stronger position on the Norwegian Continental Shelf both
as license partner and in the role as a pre-qualified operator.
Lime is continuously looking for new opportunities
to expand its activity for further value creation. Lime
Petroleum AS aims to be an active responsible partner, per-
forming its see-to duty as a licensee, and now also ensuring its
business activities comply with human rights standards by
creating procedures to identify, report and mitigate trans-
gressions. The company is actively taking part in initiatives
that mitigate the footprint of our activities by participating
in a CO2 carbon storage project. The project worked through
2022 with subsurface studies that identified a secure
location for CO2 injection on the NCS.
The Board of Directors of Lime Petroleum AS
Oslo, 30 April 2023
Lars B. Hübert
CEO
Svein H. Kjellesvik
Executive Chairman
Christopher D. Atkinson
Director
Peter N. Eckhard Oehms
Director
Confirmation from the Board of
Directors and CEO 2022
We confirm that, to the best of our knowledge, the financial
statements for the period from 1 January to 31 December
2022 have been prepared in accordance with IFRS adopted
by EU and give a true and fair view of the Company’s assets,
liabilities, financial position and results of operations, and
that the Directors’ Report provides a true and fair view of
the development and performance of the business and the
position of the Company together with a description of the
key risks and uncertainty factors that the Company is facing.
ANNUAL REPORT 2022
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Page 24 Page 25
(Amounts in TNOK) Note 2022 2021
Revenues from crude oil and gas sales 4 947 527 0
Other operating income / loss (-) 12 -1 221 160 684
Total operating income 946 306 160 684
Production expenses 5 -455 409 0
Change in over-/underlift position 5 18 746 0
Exploration expenses 6 -31 154 -29 928
Payroll and related cost 7 -36 121 -35 843
Depreciation and amortisation 13,14 -180 028 -1 570
Impairment (-) / reversal of impairment 11 -232 156 -8 745
Other operating expenses 8 -44 045 -13 078
Total operating expenses -960 168 -89 164
Profit / loss (-) from operating activities -13 862 71 521
Finance income 21 490 427
Finance costs -155 008 -34 068
Net financial items 9 -133 518 -33 641
Profit / loss (-) before income tax -147 380 37 880
Taxes (-) / tax income (+) 10 66 876 81 785
Profit / loss (-) for the year -80 505 119 664
Income Statement
(Amounts in TNOK) Note 2022 2021
Profit/loss(-) for the year -80 505 119 664
Other comprehensive income, net of tax: 0 0
Total comprehensive income for the year -80 505 119 664
Statement of
comprehensive income
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(Amounts in TNOK) Note 2022 2021
ASSETS
Non-current assets
Goodwill 11 313 486 0
Exploration and evaluation assets 11 240 360 355 010
Oil and gas properties 12,13 1 518 202 727 670
Property, plant and equipment 13 775 661
Right-of-use assets 14 7 282 2 256
Non-current receivables 15 1 331 363 1 473 184
Total non-current assets 3 411 468 2 558 780
Current assets
Prepayments and other receivables 16 257 234 51 623
Spareparts, equipment and inventory 134 918 104 539
Tax refund receivable 10 556 235 355 488
Other financial asset - restricted cash 17 87 500 84 500
Cash and cash equivalents 17 405 898 146 262
Total current assets 1 441 784 742 412
Total assets 4 853 253 3 301 193
EQUITY AND LIABILITIES
Equity
Share capital 18 216 900 130 320
Other paid-in capital 125 471 12 052
Capital increase pending registration 0 200 000
Retained earnings / Uncovered loss 25 145 105 650
Total equity 367 517 448 022
Liabilities
Non-current liabilities
Asset retirement obligations 19 1 790 703 1 674 828
Deferred tax liabilities 10 657 109 359 777
Leasing liabilities 14 5 396 969
Interest-bearing loans and borrowings 20 918 289 508 489
Total non-current liabilities 3 371 497 2 544 063
Current liabilities
Interest-bearing loans and borrowings 20 137 156 75 000
Trade creditors 21 43 713 24 652
Other current liabilities 22 933 369 209 456
Total current liabilities 1 114 238 309 108
Total liabilities 4 485 736 2 853 171
Total equity and liabilities 4 853 253 3 301 193
Balance Sheet as at 31 December
Statement of changes in equity
(Amounts in TNOK)
Share capital
Not
registered
capital
increase
Other paid
in capital
Retained
earnings /
Uncovered
loss
Total equity
Equity at 1 January 2021 130 320 11 386 -14 014 127 692
Profit / loss (-) for the year 119 664 119 664
Other comprehensive income for the year - - 0
Total comprehensive income for the year 119 664 119 664
Share-based payment 665 665
Shares issued in 2021, registered in 2022 200 000 200 000
Equity at 31 December 2021 130 320 200 000 12 052 105 650 448 022
Equity at 1 January 2022 130 320 200 000 12 052 105 650 448 022
Profit / loss (-) for the year -80 505 -80 505
Other comprehensive income for the year - - 0
Total comprehensive income for the year -80 505 -80 505
Shares issued in 2021, registered in 2022 86 580 -200 000 113 420 0
Equity at 31 December 2022 216 900 0 125 471 25 145 367 517
The Board of Directors of Lime Petroleum AS
Oslo, 30 April 2023
Lars B. Hübert
CEO
Svein H. Kjellesvik
Executive Chairman
Christopher D. Atkinson
Director
Peter N. Eckhard Oehms
Director
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LIME PETROLEUM
Page 28 Page 29
Cash Flow Statement
(Amounts in TNOK) Note 2022 2021
Cash flow from operating activities
Profit (loss) before income tax -147 380 37 880
Adjustments:
Gain from bargain purchase 12 0 -160 684
Tax refunded 10 375 393 170 848
Depreciation 13,14 180 028 1 637
Impairment/disposals exploration assets 11 232 705 8 745
Changes in trade creditors 21 19 061 17 116
Changes in other assets and liabilities 282 681 41 616
Net cash flow from operating activities 942 489 117 157
Cash flow from investing activities
Investment in exploration and evaluation assets 11 -121 130 -126 446
Net cash paid in business combination 12 -538 582 -364 889
Investment in oil and gas properties 13 -428 462 0
Brage abandonment liability - restricted cash 17 -3 000 -84 500
Purchase of property, plant and equipment 13 -6 903 -51
Net cash flow from investing activities -1 098 077 -575 885
Cash flow from financing activities
Funds drawn current borrowings, net of transaction costs incurred 20 0 25 000
Proceeds from borrowings, bond loan 20 903 335 486 875
Repayments of borrowings, bond loan 20 -460 462 0
Repayments of current borrowings 20 -75 000 -180 000
Repayments of lease liabilities 14 -1 685 -1 370
Loans from shareholder 20 49 036 129 148
Proceeds from share issues 0 128 000
Net cash flow from financing activities 415 224 587 653
Net change in cash and cash equivalents 259 636 128 925
Cash and cash equivalents at 1st January 146 262 17 337
Cash and cash equivalents at 31st of December 405 898 146 262
Interest paid 64 603 14 769
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