Atlantic Petroleum has reported that its fully owned subsidiary, Atlantic Petroleum Norge AS (APN), has entered into a Sale and Purchase Agreement with M Vest Energy AS. The agreement is for the sale of its Norwegian activities for the consideration of NOK 1. The Norwegian activities include all of APN’s assets and licenses, the liabilities of the licences, the employees and a cash balance of approx. NOK 19 million to be adjusted for costs and expenses from the date of the transaction, 1 January 2016, to closing.
Subject to completion, the transaction will comprise a cessation of all of APN’s petroleum activities. As a result of the transaction, the Company expects to record an impairment of DKK approx. 150 million, and APN expects to realise the tax value of the tax loss carry forward in December 2017 – presently estimated to be approx. NOK 27 million in cash.
CEO, Ben Arabo, commented: “Following a formal sales process last year failing to solicit bids for the Company or parts thereof, Atlantic Petroleum has over the past months been reviewing a range of strategic alternatives and the sale of its Norwegian activities is a step in the process of trying to resolve the issues facing the group in the current oil & gas industry market conditions. We believe the transaction is in the best interest of all stakeholders of the Company and we are pleased that the activities in APN will be continued through M Vest Energy.”
The proposed transaction is conditional upon certain conditions.
Atlantic Petroleum North Sea Ltd remains in default on the Ettrick, Blackbird and Chestnut fields.
Edited from press release by Angharad Lock
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