Orlando offtake route and topsides modifications agreed
Tórshavn, Faroe Islands, 2014-10-08 11:00 CEST (GLOBE NEWSWIRE) --
Atlantic Petroleum (NASDAQ OMX: ATLA DKK & Oslo Stock Exchange: ATLA NOK), the
independent oil and gas company, is pleased to announce that, together with
Iona Energy UK Limited (Iona) the Orlando Field Operator, it has signed all
necessary agreements with CNR International (U.K.) Limited (?CNR?) the Operator
of the Ninian Central Platform (?NCP?) securing the offtake arrangements for
the Orlando field development (Atlantic Petroleum 25% interest, and Iona 75%
interest).
Highlights:
· Construction and Tie-in Agreement (?CTIA?) signed
· Processing and Operating Services Agreement (?POSA?) signed
· Common Stream Agreement (?CSA?) signed
· Individual Gas Sales Agreement (?ISA?) signed
· First oil to be delivered by the end of 2016
Orlando is a single well development which will tie-back to the NCP. The Field
Development Plan was approved in April 2013. Orlando will initially deliver
approximately 2,600 boe/d net to Atlantic Petroleum. The proven plus probable
reserves were estimated by the independent reserves auditor Gaffney Cline
Associates in 2013 to be 3.8MMboe net to Atlantic Petroleum. The CTIA describes
how the parties will work together to deliver first oil from the Orlando
development with a stated joint objective of first oil by the end of 2016.
Integrated planning is already at an advanced stage to commence the
installation of brownfield equipment on NCP in 2015. Subsea installation and
drilling activities are planned to commence in spring 2016.
The development plan for Orlando comprises of re-entering the suspended
3/3b-13z well, drilling a 3,000 foot horizontal section to be completed with
dual Electric Submersible Pumps (?ESPs?). A subsea pipeline, power supply and
control umbilical will be laid between the well-head and NCP approximately 10
km to the south west of the Orlando field.
The manufacture of the Orlando line pipe is complete as are the power cables
for the ESPs. Umbilical manufacturing is underway for delivery in early 2016.
Manufacture of the control system and Xmas Tree are ongoing. Contractual
arrangements for the balance of the subsea equipment are in the process of
being finalised in line with the end 2016 first oil schedule.
Ben Arabo, CEO of Atlantic Petroleum said:
?We are delighted to have completed the contracts necessary to secure the
export route and the commitment of the Ninian Field Operator to receive and
process the production from the Orlando field. This is the final step in the
commercial arrangements to allow the field development to progress towards
first oil production before the end of 2016. Orlando is an important part of
our growth plans; we expect to more than double our current production by the
end of 2016. We look forward to working with Iona and the Ninian partners on
project execution and completion.?
Tom Reynolds, CEO of Iona Energy said:
?Orlando is an important asset for Iona and will not only help diversify the
production portfolio, it will also significantly increase production levels
when it comes on stream. With the off take route established and contracted
this development will move ahead at pace.?
Dave Whitehouse, Vice President of Development Operations of CNR said:
?CNR is pleased to be working with Iona to bring additional production volumes
back to the Ninian Central host platform. The Orlando development is an
important development for this key North Sea hub.?
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 45 oil and gas
licences in the UK, Norway, Faroe Islands, Ireland and the Netherlands, 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.43/2014
Issued 08-10-2014
P/F Atlantic Petroleum
Yviri við Strond 4
P.O. Box 1228
FO-110 Tórshavn
Faroe Islands
Telephone +298 350 100
Fax +298 350 101
Website: www.petroleum.fo
E-mail: petroleum@petroleum.fo