English
Published: 2015-05-27 07:26:30 CEST
Atlantic Petroleum P/F
Company Announcement

PL802 farm down and PL602 withdrawal

Tórshavn, Faroe Islands, 2015-05-27 07:26 CEST -- P/F Atlantic Petroleum (NASDAQ OMX Copenhagen: ATLA DKK & Oslo Stock Exchange: ATLA NOK) today announces that Statoil will exercise their option to take 10% of the PL802 licence in the Norwegian Sea. This will leave Atlantic Petroleum with 10% equity in License PL802 containing a number of high impact prospects.

 

Following receipt of a further drilling proposal on the Gymir prospect on Licence PL602, Atlantic Petroleum announces that it has submitted a notice of withdrawal from the License.

Ben Arabo, CEO, commented:

“After initial encouragement, our current view on the marginal economics on Roald Rygg combined with expected long lead time to start of production has led to the decision to withdraw from PL602. The further drilling of small accumulations scheduled for production in 2024 is a marginal project at the current time and an inefficient use of funds and resources in the current period of low oil price. We will continue to focus on our larger opportunities in the Norwegian Sea Aasta Hansteen area, where we retain a strong footprint, and on projects that can be monetized more quickly, such as the recently announced sale of our UK Pegasus West project.”

 

PL802 was awarded in February 2015 (APA 2014 award). The partnership consists of Repsol (operator, 40%), Eon (20%), OMV (20%) and Atlantic Petroleum (20%). The licence is sitting just north east of the Asterix discovery, and contains several prospects within the Upper Cretaceous play system that has been proven successful in this area.

The PL602 withdrawal means that the company will relinquish its 7.5% interest in PL602 including the Roald Rygg discovery. A non-cash pre-tax write down of an estimated NOK 20MM will be taken in Q2 2015.

 

Atlantic Petroleum in brief:

Atlantic Petroleum is a full cycle exploration and production (E&P) Group focused on North West Europe. Atlantic Petroleum currently holds around 37 oil and gas licences in the UK, Norway, and Ireland, and has three fields in production in the UK part of the North Sea. In addition to this, the Group has one field under development with first oil expected in 2016, two additional potential development projects and a substantial number of exploration prospects. Atlantic Petroleum participates in joint ventures with 30 reputable, international partners. Atlantic Petroleum’s main office is located in Tórshavn, Faroe Islands, and the Company has subsidiaries and technical offices in London, UK and Bergen, Norway. Atlantic Petroleum’s existing shares are listed on NASDAQ OMX Copenhagen and on Oslo Stock Exchange.

 

 

Further Details:

Further details can be obtained from Ben Arabo, CEO, tel +298 350100 (ben.arabo@petroleum.fo). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: www.petroleum.fo.

 

On the website, it is also possible to sign up for the Company’s e-mail newsletter.

 

Announcement no.20/2015

Issued 27-05-2015

 

         P/F Atlantic Petroleum
         Yviri við Strond 4
         P.O. Box 1228
         FO-110 Tórshavn
         Faroe Islands
         
         Telephone +298 350 100
         Fax +298 350 101
         Website: www.petroleum.fo
         E-mail: petroleum@petroleum.fo