Atlantic Petroleum, Iona Sanction Orlando Development (UK)

Atlantic Petroleum  today announces the completion of the acquisition of 25% working interest in the Orlando and Kells discoveries (P.1606 and P.1607) entered into and announced 13th December 2012.

Atlantic Petroleum has through its fully owned subsidiary Volantis Exploration Limited committed to pro-rata funding of the Orlando & Kells developments commensurate with its 25% working interest.

Orlando sanctioned

The development of Orlando has today been sanctioned by Atlantic Petroleum and Iona. Orlando will be developed as a subsea tie back to the Ninian Central Platform in the Northern North Sea.

The following key milestones and components of the Orlando project have been estimated by the operator:

• First oil from Orlando is expected second half 2014.
• The expected initial rate from Orlando is 10,000+ bopd gross.
• Orlando OPEX and Tariff is USD 16.75/bbl.
• CAPEX to first oil is currently estimated to be USD 43.4MM net to Atlantic Petroleum

Ben Arabo, CEO of Atlantic Petroleum comments: “This is a very important step for Atlantic Petroleum in replacing its short term production. The Orlando development has provided significant new reserves to the company, and will increase our production in 2014 and beyond. This investment is fully in line with Atlantic Petroleum’s strategy and production profile. Orlando is likely to become the 4th Atlantic Petroleum field to come onstream and we look forward to the sanction of Kells later this year with an aim to have first oil from Kells in 2015.”

[mappress]
February 21, 2013