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Atlantic Petroleum has completed a significant agreement with the licence 006 Group and the Faroese Petroleum Administration. The result of the agreement is that a new commitment to drill on license 006 is undertaken in lieu of the existing well commitments of licence 001 and licence 003. The partners from licences 001 will become partners in licence 006 together with the partners from licence 003.

Atlantic Petroleum has completed a significant agreement with the licence 006 Group and the Faroese Petroleum Administration. The result of the agreement is that a new commitment to drill on license 006 is undertaken in lieu of the existing well commitments of licence 001 and licence 003. The partners from licences 001 will become partners in licence 006 together with the partners from licence 003.

‘Atlantic Petroleum is very satisfied with today’s agreement, which we believe will be advantageous for all parties. The agreement marks a new phase in oil exploration on the Faroe continental shelf. This will, together with other commitments undertaken during the next years, provide us with a much better understanding of the prospectivity of the area’ says Wilhem Petersen, Managing Director of Atlantic Petroleum.

From Atlantic Petroleum’s point of view there are several gains from the new cooperation.

Firstly, Atlantic Petroleum will participate in the drilling of the prospect ‘Brugdan’, which is a very large anticlinal structure at a subbasalt level, which in a success case can hold significant amounts of hydrocarbons.

Secondly, the information from this well, which will be the first well ever to be drilled through the Faroese basalt, will provide crucial geological information on the structures underneath the basalt, and enhance the understanding of the geology on the Faroese continental shelf. This information can be very important in Atlantic Petroleum’s work to mature the two other licences in the Faroes, licence 013 (40%) and 014 (40%), given the similarities in structures between these areas and ‘Brugdan’ prospect.

Thirdly, Atlantic Petroleum has been able to transfer its option agreement from licence 001 to licence 006, which means that Atlantic Petroleum will only participate with a very small share of the cost and risk in licence 006 only 0.025%, while having the option to increase the licence share to 1.2905% in case of a discovery.

Finally, the merger of the two groups also opens new doors for Atlantic Petroleum in terms of networking possibilities. Through the operations in the Faroese and UK sectors, Atlantic Petroleum has established working relationships with almost all major operators and oil companies operating in the Atlantic Margin area.

The Licence 006 Group has contracted the Stena Don semi-submersible rig, currently on long term contract with Statoil in Norway, to drill the well in the summer of 2006.

Final interest in Licence 006 will be Statoil 27.15% (Operator), DONG 21.91%, Anadarko 13.00%, Enterprise Oil (Shell) 12.47%, Amerada Hess 11.09%, BG Group 10.31%, Faroe Petroleum 4.04% and Atlantic Petroleum 0.025% (with an option to increase to 1.2905%).

Source : www.oilonline.com

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