Atlantic Petroleum Completes the Sale of its 25% Interest of UK P.1606 Orlando for Cash and a Share of the Sale Proceeds from Future Orlando Production
Monday 15 May 2017
Atlantic Petroleum (NASDAQ Copenhagen: ATLA DKK & Oslo Stock Exchange: ATLA NOK) announces that further to Announcement no. 4 issued 14th March 2017, it has completed the Sale and Purchase Agreement with Decipher Energy for its 25% interest in the Orlando development.
The consideration is a 2% revenue share of the total Orlando production revenue until the field has produced 5 million barrels of oil. After that the revenue share to Atlantic Petroleum increases to 4.35% of the total Orlando field revenue.
USD 1MM of the initial 2% revenue has been prepaid to Atlantic Petroleum.
Atlantic Petroleum will no longer 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.
According to the most recent Competent Persons? Report prepared for Atlantic Petroleum by Gaffney Cline and Associates announced in March 2015, Orlando holds between 8.5 and 15.3 million barrels of recoverable reserves. Initial production rates on Orlando are expected to be in excess of 10.000 barrels per day.
Ben Arabo, CEO of Atlantic Petroleum, said:
"We are very pleased to complete the agreement with Decipher Energy and we look forward to the field commencing production. There is significant upside to Atlantic Petroleum from the Orlando sales proceeds if the field performs as expected or better."