Atlantic Petroleum is withdrawing from, and farming out of two production licenses in the Norwegian Sea.
 |
|
Roald Rygg map. From Statoil. |
The company submitted a notice of withdrawal on the Gymir prospect located on PL602 after receiving a drilling proposal. The withdrawal means that the company will relinquish its 7.5% interest in the license, which includes the Roald Rygg discovery.
A non-cash pre-tax write down of an estimated US$2.5 million will be taken in 2Q 2015.
Atlantic said its current view on the marginal economics on Roald Rygg combined with expected long lead time to start of production has led to their decision to withdraw from PL602.
“The further drilling of small accumulations scheduled for production in 2024 is a marginal project at the current time and an inefficient use of funds and resources in the current period of low oil price,” Ben Arabo, Atlantic CEO said. “We will continue to focus on our larger opportunities in the Norwegian Sea Aasta Hansteen area, where we retain a strong footprint, and on projects that can be monetized more quickly, such as the recently announced sale of our UK Pegasus West project.”
Drilling at the Roald Rygg well 6706/12-3 began in late March.
In PL802, Statoil is exercising its option to take 10% of the license, which will leave Atlantic with 10% interest. PL802 contains a number of high impact prospects, the company said.
The license sits northeast of the Asterix discovery and contains several prospects within the Upper Cretaceous play system that has been proven successful in the area. PL802 was awarded in February 2015.
Read more
Subscribe
