Faroese oil company Atlantic Petroleum has found a buyer for its UK North Sea Orlando development. The company on Monday said that Bridge Petroleum would buy Atlantic Petroleum’s 25% interest in the Orlando.

According to Atlantic, Bridge Petroleum will pay the consideration of less than 7 million Danish Crowns (around $1 million), and a deferred consideration in the form of a share of the sale proceeds from the Orlando production.

Atlantic however said, that this deal is subject to Bridge Petroleum acquiring Iona UK Limited.

To remind, Iona Energy, operator of Orlando with a 75% stake, in January 2016 entered into administration after an unsuccessful financial restructuring attempt.

The Orlando field is located in the UK North Sea in Block 3/3b at a water depth of 142 meters. Sanctioned in February 2013, Orlando was meant to be developed as a subsea tie-back to the Ninian Central Platform in the Northern North Sea with first production expected in Q4 2016. However, Iona Energy’s administration had left the future of the Orlando field uncertain.

Atlantic Deal

Bridge Petroleum, set to acquire Iona’s assets, describes itself as “an investor in operated and non-operated assets in the oil & gas industry”, focused on the UK sector of the North Sea and UK land.

Atlantic Petroleum on Monday said that when the transaction with Bridge Petroleum completes Atlantic Petroleum will not be participating in or funding the development of Orlando, and the only involvement for the company will be receiving its share of the sale proceeds when the field starts production.

Atlantic Petroleum CEO, Ben Arabo, said: “We are very pleased with the agreement with Bridge Petroleum. The Orlando development is a good project and we are very glad to see that there are plans for it to be taken forward to production in 2017. We don’t expect any further write down on Orlando. If the field performs as expected and the oil price recovers, there can be significant upside to Atlantic Petroleum from the Orlando sales proceeds.”