Tórshavn, Faroe Islands, 2021-01-07 (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 production from the UK Orlando field has re-commenced.
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, and Atlantic Petroleum is now due to receive 2% of the gross revenue from the production as per the Orlando SPA of 2017.
Atlantic Petroleum has today received the first monthly payment of the deferred consideration.
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.
Mark Højgaard CEO said:
“Getting production revenue from the Orlando field is an important milestone for Atlantic Petroleum. The cashflow will be instrumental in restructuring the debt and in being able to add new assets to our asset portfolio.”
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 can be obtained from Mark T. Højgaard, (email@example.com). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: www.petroleum.fo.
Announcement no.: 1/2021
P/F Atlantic Petroleum
Lucas Debesargøta 8