Page 40 - Lime Petrolium Annual Report 2020

LIME PETROLEUM
Note 19 Contingent liabilities
The company has not been involved in any legal or financial disputes in 2020 where adversely outcome is considered more likely than remote.
Note 20 Shares in licences and obligations
The company`s 2021 obligations related to the licence portfolio as at year end estimated to a total of 176 million. This forecast is based on operator’s licence budgets and includes one farm-in well and obligations related to APA2020 awards.
Note 21 Events after the balance sheet date
Following its participation in the APA2020 licencing round, Lime was awarded four licences, announced in January 2021. 20% participating share in PL1093 (El Teide), 40% participating share in PL1111 (Kings Canyon), 50% participating share in PL1125 (Falk) and 20% participating share in PL263F (add-on). The licences were formally awarded by the authorities 19 February 2021.
On the 6 April 2021 Lime signed an agreement with ONE-Dyas Norge AS to swap its 20 per cent interests in each of the licences PL263D, PL263E, and PL263F Sierra (previously known as Apollonia) in the Norwegian Sea for ONE-Dyas’ 13.3 per cent interest in PL433 Fogelberg. Approval from the Ministry of Petroleum and Energy is expected during second quarter 2021.
An amendment to the shareholder loan agreement with Rex was signed 15 April 2021 extending the expiry date of loan facility to 15 April 2022. The size of the loan facility NOK 50 milion.
The company is taking the current Corona Virus pandemic very seriously, and is following the recommendations from the Norwegian Institute of Public Health (FHI) to mitigate the virus. The company has instituted home officing for the employees. Business travel is reduced/eliminated, replaced by videoconferencing. These measures will be in place as long as recommended by FHI. The company anticipates improved business conditions in the long term and will continue monitoring the situation globally.
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