Atlantic Petroleum Withdraws from Gymir Prospect in Norwegian Sea
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.
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Rystad Looks at the Buzz Around White Hydrogen
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension