Atlantic Petroleum inks farm-down option deal for three licences
- Business & Finance
Atlantic Petroleum has entered into a farm-down option deal with Statoil Petroleum related to the PL704, PL705 and PL802 licences in the Vøring Basin, off Norway.
Atlantic Petroleum currently holds 30% in PL704 and PL705, and 20% in PL802.
PL704, PL705 and PL802 are located in the western part of the Vøring Basin, close to the Asterix gas discovery. According to Atlantic Petroleum, all the licenses contain several prospects and leads, within the same play model as proven by Asterix. A drill or drop decision will be taken by the partnership during the spring 2015 for the PL705 licence, and given a positive decision, a well is planned for 2016. For PL802 and PL704 the deadline for taking a drill or drop decision is in 2017.
Through the farm-down option deal, Statoil will have the right to purchase up to twenty percent (20%) participating interest in PL705. The option is valid until April 30, 2015. Should the option be exercised by Statoil, there will be a carry associated with the cost related to the drilling of the first exploration well.
For PL704 Statoil will have the right to acquire up to twenty percent (20%) participating interest, and for PL802 Statoil will have the right to acquire up to ten percent (10%) participating interest. The options are independent and valid until April 30, 2015.
CEO Ben Arabo comments: “We are very pleased to announce this deal. This agreement demonstrates the quality of the acreage we hold in the Mid-Norway area and our Norwegian team’s ability to deliver commercial options that deliver low cost potentially high impact exploration activity.”