Atlantic Petroleum completes sale of 25% interest in Orlando development

TORSHAVN, Faroe Islands -- Atlantic Petroleum has announced that further to announcement No. 4, issued March 14, 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 MMbbl of oil. After that the revenue share to Atlantic Petroleum increases to 4.35% of the total Orlando field revenue.

About $1 million 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 MMbbl and 15.3 MMbbl of recoverable reserves. Initial production rates on Orlando are expected to be in excess of 10,000 bpd.