Atlantic Petroleum has agreed to sell its 25% stake in the Orlando development to Decipher Energy.
The project is a planned subsea tieback to the Ninian platform, operated by CNR International.
Decipher Energy was set up in September last year and is let by Brian Cameron and Steven Bowyer, who was previously managing director of North Sea independent First Oil and has also worked ay Senergy, Taqa and Talisman.
Atlantic will be paid via a 2% share of Orlando production revenues until the field has produced 5 MMbo, after which the share paid will increase to 4.35%.
The firm had agreed a deal to sell the stake to Bridge Petroleum, but the deal fell through and after the failure of partner Iona Energy, Atlantic became operator.
According to a competent persons’ report by Gaffney Cline and Associates, Orlando holds 8.5-15.3 MMbbl. Initial production rates on Orlando are expected to be in excess of 10,000 b/d.
Ben Arabo, Atlantic's CEO, said: “We are very pleased with the agreement with Decipher Energy. The Orlando development is a good project and we are very glad to see that it will be developed with a planned first oil date in 2018. If the field performs as expected and the oil price remains at current levels or recovers further, there can be significant upside to Atlantic Petroleum from the Orlando sales proceeds."