Atlantic Petroleum - Orlando Field Production Update
Tórshavn, Faroe Islands, 2020-07-16 (GLOBE NEWSWIRE) -- P/F Atlantic Petroleum (NASDAQ Copenhagen: ATLA DKK & Oslo Stock Exchange: ATLA NOK) announces an Orlando field production update following the disclosure of production information from the Licence Operator under the terms of the associated Sale and Purchase Agreement (SPA) with Decipher Energy.
Orlando Field Production Update
The Licence Operator, Decipher Production, has advised Atlantic Petroleum that the Orlando field production is currently shut-in due to maintenance and enhancement work on the Ninian Central Platform.
Prior to the shut in that commenced in April, Orlando production revenue reached the threshold for payment to Atlantic Petroleum to be received from Decipher Energy. However, at the time the oil price was lower than the deferred payment threshold of USD 35 per barrel. Therefore, the shut-in has had little impact on Atlantic Petroleum in Q2.
Atlantic Petroleum expects to receive its 2% revenue share once production on Orlando re-commences, as oil prices have recovered to levels above USD 35 per barrel.
Atlantic Petroleum will provide the market with an update once Orlando revenue is received.
Orlando Overview
The Company has retained an economic interest in the Orlando Field; sold in 2017 to Decipher Energy. Under the Sale and Purchase Agreement, the Company, via Atlantic Petroleum North Sea Limited, is due to receive a deferred consideration of 2% of the sale proceeds of the first 5MM barrels of Orlando production, of which USD 1MM was pre-paid in 2017. After the first 5MM barrels have been produced on Orlando, Atlantic Petroleum North Sea Limited is due to receive 4.35% of the sale proceeds from Orlando production. Production from the Orlando field began on the 29th March 2019.
Atlantic Petroleum in brief:
Atlantic Petroleum participates in oil and gas joint ventures with reputable, international partners. Atlantic Petroleum P/F is based in Tórshavn, Faroe Islands, and the Company currently has subsidiaries and offices in the UK. Atlantic Petroleum’s shares are listed on NASDAQ OMX Copenhagen and on the Oslo Stock Exchange.
Further Details:
Further details can be obtained from Mark T. Højgaard, (markh@petroleum.fo). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: www.petroleum.fo.
Announcement no.: 7/2020
Issued: 16-07-2020
P/F Atlantic Petroleum
Lucas Debesargøta 8
P.O.Box 1228
FO-110 Torshavn
Faroe Islands
Website: www.petroleum.fo