Atlantic & Venture to Use SSP 300 FPSO for Chestnut Field

On behalf of the Chestnut Partnership, the operator Venture Production and Sevan Marine have signed a contract for the use of Sevan's floating production, storage and offloading platform SSP 300 on the Chestnut field located in the central UK North Sea, in approximately 120 meters of water. The contract replaces a letter of intent between the parties entered into previously this year.

The fixed term of the charter contract is 30 months, with extension options for an additional 24 months. The SSP 300 FPSO will be installed on the Chestnut field mid-2007. The contract value for the fixed term is approximately US $64 million, excluding the value of any operational services to be performed by Sevan Marine.

The SSP 300 FPSO will be equipped with a process plant capacity of 30,000 barrels of oil per day, a water injection plant with a capacity of 20,000 barrels per day and an oil storage capacity of 300,000 barrels.

The Chestnut field is being developed with reserves of between 7 and 15 million barrels and as such this will be one of the smallest developments in the North Sea with its own production unit.

Wilhelm Petesen P/F Atlantic Petroleum's CEO
"With this agreement with Sevan Marine ASA, Chestnut is the first development in which Atlantic Petroleum participates and the company is now entering a new phase. We are pleased to be in a Partnership developing one of the smallest discoveries in the north see with its own stand alone solution, and still get a satisfying return on our investments."

Chestnut partners and interests
The Chestnut Field is to be developed by Venture Production (North Sea Developments) Limited (Operator) (69.875%), Bow Valley Petroleum (UK) (15.125%) and Atlantic Petroleum UK Ltd. (15%).