Tórshavn, Faroe Islands 10th October 2008 - Atlantic Petroleum (OMX: FO-ATLA)
the international upstream oil and gas company, today announces that first oil
cargo has been successfully offloaded from the FPSO Sevan Hummingbird on the
Chestnut Field. Atlantic Petroleum holds 15% working interest in UK Block 22/2a
which contains the Chestnut Field.
This morning the shuttle tanker "Siri Knutsen" successfully completed
offloading of the first oil cargo from the floating production storage and
offtake unit (‘FPSO') Sevan Hummingbird. The tanker will discharge its cargo of
approximately 220,000 barrels at a refinery in NW Europe within the next few
days.
Commenting on the announcement, Wilhelm Petersen, Managing Director of P/F
Atlantic Petroleum said:
“This offloading of our first cargo is another historic milestone for Atlantic
Petroleum, adding to the recent first oil milestone. The expected income to
Atlantic Petroleum from this first cargo is expected to be around DKK 15-16
millions for approx 20 day's production from the Chestnut field. This milestone
is in line with our strategy of being an exploration and production company and
as such opens up additional opportunities for Atlantic Petroleum, which will be
pursued in accordance with the current company strategy.”
Production on the Chestnut Field commenced on 20th September utilising the
Hummingbird FPSO which is the second Sevan 300 unit to be built and the first
cylindrical FPSO to be deployed in the North Sea. It will stay on location
until the Chestnut Field ceases production. The partnership has leased the FPSO
for two and a half years and has options to extend the lease period up to an
additional two years.
Chestnut has recoverable reserves estimated at 1.4 million barrels of oil
equivalent (“MMboe”) to Atlantic Petroleum and initial average production rates
to Atlantic Petroleum are expected to be between 1,300 and 2,100 barrels of oil
equivalent per day (“boepd”). The reserves and the production rates mentioned
excludes production from South Chestnut.
As previously announced, a second Chestnut production well was spudded on 7th
September 2008. Drilling operations are ongoing and the well is expected to be
completed shortly and tied-in to the Chestnut infrastructure during early 2009.
The well is expected to significantly increase production rates, recoverable
reserves and extend the field life. The well is being drilled by the Noble Ton
Van Langeveld semisubmersible rig. The rig can be seen in the background of the
photograph accompanying this press release.
Partners in this licence are Venture Production (operator) 69.88%, Bow Valley
15.12% and Atlantic Petroleum 15%.
Further Details
Further details can be obtained from Wilhelm Petersen, Managing Director, tel
+298 350 100 (wilhelmp@petroleum.fo) or Teitur Samuelsen, Financial Manager,
tel +298 350 100 (teiturs@petroleum.fo). This announcement will be available,
together with other information about Atlantic Petroleum, on the Company's
website: www.petroleum.fo.
P/F Atlantic Petroleum Issued 10-10-2008
Gongin 9 Telephone +298 350 100
P.O. Box 1228 Fax +298 350 101
FO-110 Tórshavn Website: www.petroleum.fo
Faroe Islands
