P/F Atlantic Petroleum saw net loss, production declineStaff writer ▼ | March 31, 2016
P/F Atlantic Petroleum announced its results for the full year of 2015. The result after tax for 2015 was a net loss of DKK 564,0MM (2014: Loss of DKK 218,3MM).
P/F Atlantic Petroleum Loss was DKK 424,2MM for the last quarter of 2015
The loss in 2015 was principally caused by impairment charges of DKK 389,2MM on company's producing and development fields, arising from current low oil price environment and the exploration expense of DKK 337,3MM related to unsuccessful exploration and relinquishment of licences.
In 2015 net oil production to Atlantic Petroleum from the Ettrick, Chestnut and Blackbird fields was 486,000 boe (2014: 586,000 boe).
As a response to the low oil price environment the company closed the Faroes Office in July 2015 and curtailed exploration where possible and rationalised its portfolio.
A sales process and farm out process of certain assets was launched, and the company ran a strategic options process from August 2015 with Pareto Securities acting as advisor attempting to either sell corporate entities or raise new sources of finance. This process failed to achieve an integrated solution for the company.
Iona, the operator of the Orlando Field (AP interest 25%), announced November 18 that their financing for the field had fallen through and that they were likely to enter administration; subsequently confirmed on the 6th January 2016. The field development stalled on November 18.
On December 3, Atlantic Petroleum North Sea Limited announced that the company was under default under the Ettrick and Blackbird Joint Operating Agreement for failing to make payments. The default has not been cured and the asset is as of the 26th January 2016 subject to forfeiture. ■