Atlantic Petroleum Continues to Increase Production

Atlantic Petroleum revealed Wednesday that its total production output from the Chestnut, Ettrick and Blackbird fields, located offshore UK, has increased by 9,000 barrels of oil equivalent year-on-year from August 2014 to August 2015.

The company produced a net total of 48,000 boe from the three UK fields in August 2015 and the average daily production for the month reached 1,548 boe. August’s figures marked a 4,000 boe increase compared to July 2015, which saw Atlantic Petroleum produce a net total of 44,000 boe from Chestnut, Ettrick and Blackbird with an average daily production of 1,419 boe. Compared to July last year, when the company produced a net total 19,000 boe from the same fields, Atlantic’s production figures more than doubled in July 2015. In August 2014 the company’s output from the three fields reached a net total of 39,000 boe. The average daily production for the company during this month was 1,258 boe.

On August 27, 2015 Atlantic Petroleum announced that production for the second quarter of 2015 was 134,200 boe, compared to 106,000 boe in the first quarter of the year. The daily average output for 2Q 2015 was 1,475 boe (1Q 2015: 1,178 boepd). EBITDAX for 2Q 2015 was $1.16 million, which helped reduce the company’s total negative EBITDAX to negative $3.09 million for the first half of the year.

Atlantic Petroleum announced on August 3, 2015 that its management team had been authorized to put the company up for sale. In an effort to “explore a broad range of strategic alternatives to further enhance shareholder value”, according to an Atlantic Petroleum statement, the company was considering a sale, merger or joint venture partnership. Based on its current portfolio and activities, including the completion of the Orlando field development in the UK, Atlantic Petroleum is not financed for its planned schedule in 2016.