Atlantic Petroleum, an independent oil and gas company based in the Faroe Islands, is looking at its options after the company’s Board of Directors authorized the management team to explore a broad range of strategic alternatives, possibly even a sale of the company.
As part of the strategic review, Atlantic Petroleum said it would consider a full range of options “in order to unlock the value underlying the Company’s assets.”
The options Atlantic Petroleum is considering are: A sale or merger of the company; A sale, joint venture or partnership in respect of the company’s activities in the United Kingdom and/or Norway; or continuing to execute on the company’s strategy as an independent company.
“The initiation of a review of strategic alternatives will allow us to explore options that can accelerate the realization of value for the benefit of our
shareholders,” said Ben Arabo, Chief Executive Officer of Atlantic Petroleum.
Atlantic Petroleum said there is no assurance that the review of strategic alternatives will result in Atlantic Petroleum completing any such transaction as described above.
In the event a transaction is not completed, Atlantic will continue to execute on the Company’s strategy and operational plan as an independent company, the company said.
Additionally, the company said that based on its current portfolio and activities, including the completion of the Orlando field development in the UK, Atlantic Petroleum is not financed for its planned activities in 2016.
It said that in order to secure the cash, it might raise new equity financing, new debt financing or asset sales or a combination of these measures.
Atlantic Petroleum currently holds 34 oil and gas licences in the UK, Norway, and Ireland, 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.