Atlantic Petroleum Announces the Completion of the Sale of the Pegasus Discovery

Tórshavn, Faroe Islands, 2015-07-31 16:13 CEST (GLOBE NEWSWIRE) -- P/F Atlantic Petroleum (“Atlantic Petroleum”) (NASDAQ OMX COPENHAGEN: ATLA DKK & Oslo Stock Exchange: ATLA NOK) today announces that its subsidiary Atlantic Petroleum UK Limited has completed on the sale and purchase agreement with Third Energy Offshore Limited for the sale of Atlantic Petroleum’s interests in P1724 (UK Block 43/13b which contains the Pegasus West Gas Discovery), P1727 (UK Blocks 43/17b and 43/18b) and P2128 (Block 43/12).

Third Energy has purchased Atlantic Petroleum’s 10% working interests in the above Licences for a total potential consideration of £16.5 million of which £7.5 million was paid on completion. Remaining payments are conditional on production from Pegasus West and further development in the blocks. 

The Pegasus West well (43/13b-7) was drilled and tested at a combined rate of 91 MMscfpd (million standard cubic feet per day) in late 2014. The well is approximately 7 km WSW of the 43/13b-6Z Pegasus North discovery well. Both wells are in P1724, close to the producing Cavendish Field. The licences are operated by Centrica North Sea Gas which holds 55% equity. Prior to the sale, Atlantic Petroleum held 10% equity with  the remaining equity 35%  held by Third Energy Offshore.

CEO Ben Arabo comments: “We are very pleased to announce the completion of the Pegasus deal. This strengthens our balance sheet during the current period of low oil prices and demonstrates the value of our exploration portfolio.” 

Atlantic Petroleum in brief:

Atlantic Petroleum is a full cycle exploration and production (E&P) Group focused on North West Europe. Atlantic Petroleum currently holds around 34 oil and gas licences in the UK, Norway, and Ireland, and has three fields in production in the UK part of the North Sea. In addition to this, the Group has one field under development with first oil expected in 2016, two additional potential development projects and a substantial number of exploration prospects. Atlantic Petroleum participates in joint ventures with 30 reputable, international partners. Atlantic Petroleum’s main office is located in Tórshavn, Faroe Islands, and the Company has subsidiaries and technical offices in London, UK and Bergen, Norway. Atlantic Petroleum’s existing shares are listed on NASDAQ OMX Copenhagen and on Oslo Stock Exchange.

Further Details:

Further details can be obtained from Ben Arabo, CEO, tel +298 350100 (ben.arabo@petroleum.fo). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: www.petroleum.fo.

On the website, it is also possible to sign up for the Company’s e-mail newsletter.

Announcement no.24/2015

Issued 31-07-2015

         P/F Atlantic Petroleum
         Yviri við Strond 4
         P.O. Box 1228
         FO-110 Tórshavn
         Faroe Islands
         
         Telephone +44 208 834 1045
         Fax +44 208 834 1125
         Website: www.petroleum.fo
         E-mail: petroleum@petroleum.fo