Atlantic Petroleum entered into a US$1.1 million (DKK 7 million) sale and purchase agreement with Bridge Petroleum for its 25% interest in the Orlando development, offshore the UK.
The deal also includes a deferred consideration in the form of a share of the sale proceeds from the Orlando production. The sale and purchase agreement is contingent on Bridge Petroleum acquiring Iona UK Ltd.
Upon completion, Atlantic Petroleum will not 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.
“We are very pleased with the agreement with Bridge Petroleum. The Orlando development is a good project and we are very glad to see that there are plans for it to be taken forward to production in 2017,” Ben Arabo Atlantic CEO said. “We don’t expect any further write down on Orlando. If the field performs as expected and the oil price recovers, there can be significant upside to Atlantic Petroleum from the Orlando sales proceeds."