A drilling rig has been secured to drill the well at a fixed cost in October this year. Atlantic Petroleum's share of the most likely discovered reserves is 875,000 boe, and the company's part of the appraisal investment is expected to amount to £1.4 million (approx. 15 million DKK).
If the results of the appraisal well are satisfactory, the development of the West Lennox field will follow and first oil is expected to be in third quarter 2006.
Wilhelm Petersen, P/F Atlantic Petroleum's CEO:
"The farm in of West Lennox is in line with the company's strategy holding exploration, development and producing assets. It fits quite well into our strategy, as first oil for Atlantic Petroleum is likely to move closer as West Lennox probably will go into production in late 2006.In addition, this acquisition extends our network of strategic partners and enhances Atlantic Petroleum's experience in small oil field development".
License P.099 comprises the West Lennox discovery and the Crosby prospect: Block 110/14d and Block 110/14c.
The Partners are: Challenger Minerals as operator with 35%; Atlantic Petroleum with 25%; YAS UK Limited with 20%; First Oil Expro with 20%.
The West Lennox discovery is located approximately 4 km. from the Lennox platform. The partnership considers an ultra slim platform tied back to the Lennox platform. The development decision will be taken later this year or in the beginning of 2006, depending on the result of the appraisal well.
The production from the field will be transported via a flexible pipeline to the base of the Lennox platform. The partnership expects that contracts with main suppliers will be signed in the beginning of 2006, again depending on the results of the appraisal well.
Atlantic Petroleum currently participates in Faroese exploration Licenses and exploration and development Licenses in the UK. The company is listed on the Icelandic Stock Exchange's main list (ICEX), with the ticker FO-ATLA.
Since the foundation one of Atlantic Petroleum's long-term strategic goals has been to acquire options in fields which are already producing, and the Company is therefore actively searching for new commercial opportunities, both within and beyond the Faroes.
Atlantic Petroleum is continuously evaluating access to new international opportunities which provide the means for business development. The immediate focus is in the Northwest European sector where Atlantic Petroleum has natural business affinities and appropriate projects are likely to be available.
Future acquisitions, together with the current assets, will meet Atlantic Petroleum's objective of a balanced portfolio of producing, development and exploration interests.
In this connection it is important to note that the current dynamics of the industry in the NW European sector are such that activity by small to medium sized companies is growing
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