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Atlantic Petroleum P/F — M&A Activity 2017
Mar 14, 2017
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Download source fileTórshavn, Faroe Islands, 2017-03-14 16:12 CET (GLOBE NEWSWIRE) -- Atlantic
Petroleum (NASDAQ Copenhagen: ATLA DKK & Oslo Stock Exchange: ATLA NOK)
announces that it has entered into a Sale and Purchase Agreement with Decipher
Energy for its 25% interest in the Orlando development.
The consideration is a 2% revenue share of the total Orlando production revenue
until the field has produced 5 million barrels of oil. After that the revenue
share to Atlantic Petroleum increases to 4.35% of the total Orlando field
revenue. USD 1MM of the initial 2% revenue share is prepaid on completion of
the Sale and Purchase Agreement.
When the transaction completes Atlantic Petroleum will not be participating in
or funding the development of Orlando, and the only involvement for the company
will be receiving its share of the sale proceeds when the field starts
production.
According to the most recent Competent Persons’ Report prepared for Atlantic
Petroleum by Gaffney Cline and Associates announced in March 2015, Orlando
holds between 8.5 and 15.3 million barrels of recoverable reserves. Initial
production rates on Orlando are expected to be in excess of 10.000 barrels per
day.
Ben Arabo CEO said:
“We are very pleased with the agreement with Decipher Energy. The Orlando
development is a good project and we are very glad to see that it will be
developed with a planned first oil date in 2018. If the field performs as
expected and the oil price remains at current levels or recovers further, there
can be significant upside to Atlantic Petroleum from the Orlando sales
proceeds."
Atlantic Petroleum in brief:
Atlantic Petroleum participates in oil and gas joint ventures with reputable,
international partners. Atlantic Petroleum P/F is based in Tórshavn, Faroe
Islands, and the Company currently has an office in London, UK. 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 550100
([email protected]). 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.4/2017
Issued 14-03-2017
P/F Atlantic Petroleum
Yviri við Strond 4
P.O. Box 1228
FO-110 Tórshavn
Faroe Islands
Telephone +44 203 879 0524
Website: www.petroleum.fo
E-mail: [email protected]