Atlantic Petroleum announced Wednesday that it is withdrawing from the Gymir prospect on License PL602 in the Norwegian Sea.
The announcement comes after the company received a further drilling proposal on the prospect. Atlantic Petroleum also announced that Statoil will exercise its option to take 10 percent of the PL802 License in the Norwegian Sea. This will leave Atlantic with 10 percent equity in the license.
Atlantic Petroleum CEO Ben Arabo commented in a company statement:
"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."
On May 7, 2015 Atlantic Petroleum announced that Third Energy will purchase the company’s 10 percent working interest in Pegasus West for a total potential consideration of $25.2 million, of which $11.4 million will be paid on completion of the deal. Remaining payments are conditional on production from Pegasus West and further development in the blocks.
"Our successful Pegasus sale in a very difficult market does illustrate that it is possible to create significant value from exploration in the short term," Arabo said in a release from Atlantic Petroleum.
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