Atlantic Petroleum has withdrawn from one of its licences in the Norwegian Sea.
The Faroese company has submitted a withdrawal from the Gymir prospect on PL602.
Ben Arabo, chief executive, said: “After initial encouragement, our current view on the marginal economics on Roald Rygg combined with expected long lead time to start of production has led to the decision to withdraw from PL602.
“The further drilling of small accumulations scheduled for production in 2024 is a marginal project at the current time and an inefficient use of funds and resources in the current period of low oil price.
“We will continue to focus on our larger opportunities in the Norwegian Sea Aasta Hansteen area, where we retain a strong footprint, and on projects that can be monetized more quickly, such as the recently announced sale of our UK Pegasus West project.”
The PL602 withdrawal means that the company will relinquish its 7.5% interest in PL602 including the Roald Rygg discovery. A non-cash pre-tax write down of an estimated NOK 20MM will be taken in Q2 2015.
Recommended for you
