Faroese oil company Atlantic Petroleum has posted a profit for the first quarter of 2017, following a loss in 1Q 2016.
The company that recently sold its stake in the yet to be developed Orlando field in the UK North Sea, reported a net profit of 5.4 million Danish crowns, up from a loss of 15.5 million a year ago.
Atlantic Petroleum said the positive result for the quarter was a result of the completion of the previously announced sale of its Norwegian assets.
The Norwegian assets sale announced in March 2016 completed in January 2017, boosting the 1Q 2017 result by some 9.5 million Danish crowns.
“This has had a positive impact on Atlantic Petroleum’s shareholders equity, and it is the reason for being able to show a profit for the first quarter of 2017,“ the company said on Friday.
As for the Orlando field, the company completed the sale of its stake in May to Decipher.
As part of the deal, Atlantic Petroleum received one million dollars in cash to be accounted for in Q2, and that the company will receive a 2% revenue share from Orlando production until Orlando has produced 5 million barrels of oil and 4.35% of the gross field revenue after that.
“This should secure a strong cashflow to Atlantic Petroleum from the second half of 2018 when Orlando is expected to start production and in the years to follow,” Atlantic explained.
Furthermore, the company in the first quarter secured a loan of 8 million British pounds, which Atlantic says will secure the funds needed to run the company for the next 2 years and will provide funds for expanding the portfolio.
The company seeks to secure further value from the remaining assets in the UK and Ireland. Beyond that the company will re-focus its business and take advantage of the current downturn in the market to seek new opportunities in Europe and the Eurasian Economic Union, Atlantic said.
Atlantic’s current assets include 5 exploration, appraisal & development licences remain in the UK sector of the North Sea, Central North Sea & Southern North Sea. Also, the company has one exploration & appraisal license in Ireland.
Ben Arabo, CEO said: “The low cost base following the sale of our Norway activities, combined with the production revenue from the Orlando field expected in the second half of 2018, means that Atlantic Petroleum will have a solid base for future growth, and we are looking forward to adding new assets to the company in 2017.”
Offshore Energy Today Staff