Atlantic Petroleum to retain Orlando stake

Offshore staff

TÓRSHAVN, Faroe Islands Bridge Petroleum has backed out of a deal to purchase Atlantic Petroleum’s stake in the Orlando asset.

Atlantic Petroleum said it will retain its 25% equity in the Orlando asset until further notice.

In June, Atlantic advised that it had entered into a sale and purchase agreement (SPA) with Bridge for its 25% stake in Orlando. At that time, Atlantic said the consideration was less than DKK 7 million ($1.07 million) in cash and a deferred consideration in the form of a share of the sale proceeds from Orlando production.

The company also noted that the SPA was contingent on Bridge Petroleum acquiring Iona UK Ltd., which had fallen into administration in January 2016. There were reports in September that Bridge missed a deadline to move forward with the acquisition.

Atlantic Petroleum said that it will approach the Iona UK administrators to discuss options.

CEO Ben Arabo said: “We and our funders, London Oil and Gas, see this as an opportunity to secure the Orlando asset either with another bidder or using the position under the joint operating agreement to secure a better position for Atlantic Petroleum. We will update further when our 3Q accounts are issued Nov. 24.”

Iona held 75% and the operatorship of the Orlando development.

11/17/2016

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