TORSHAVN, Faroe Islands – Financially straitened North Sea independent Atlantic Petroleum has secured a potential lifeline.
The company has entered into heads of terms with London Oil and Gas (LOG), under which LOG is prepared to inject funds and assets worth at least £8 million ($11 million) into Atlantic by June 24.
During the intervening period, Atlantic has committed to exclude other parties from discussions.
Simon Hume-Kendall, CEO of the London Group and LOG, said: “Atlantic Petroleum’s Orlando and Kells [in the UK northern North Sea] assets are expected to have a high value when the market conditions improve, and given the right terms, we are keen to gain an interest in those assets.
“If the transaction succeeds, London Oil and Gas looks forward to work with Atlantic Petroleum’s management and board to review the company’s strategy and explore the potential for expansion, including geographical, of Atlantic Petroleum’s activities in line with the areas of business of the London Group.”
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