Atlantic Petroleum has entered into a sale and purchase agreement with Bridge Petroleum for its 25 percent interest in the offshore UK Orlando development for a cash consideration of less than DKK 7 million ($1 million).
The agreement is contingent on Bridge Petroleum acquiring Iona UK Limited. As soon as 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.
“We are very pleased with the agreement with Bridge Petroleum. The Orlando development is a good project and we are very glad to see that there are plans for it to be taken forward to production in 2017. We don’t expect any further write down on Orlando. If the field performs as expected and the oil price recovers, there can be significant upside to Atlantic Petroleum from the Orlando sales proceeds,” said Atlantic Petroleum’s CEO Ben Arabo in a company statement.
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