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Atlantic Petroleum to pull-out of Statoil-operated licence in Norwegian Sea

Atlantic Petroleum has announced its withdrawal from Statoil-operated licence PL602 in the Norwegian Sea.

The company has also announced the farm down of the license PL802, which was awarded in February 2015.

Atlantic Petroleum said Statoil will exercise its option to take 10% of the licence PL802, leaving the company with 10% equity in it, which has a number of high-impact prospects.

"The further drilling of small accumulations scheduled for production in 2024 is a marginal project at the current time, and an inefficient use of funds and resources in the current period of low oil price."

The company has submitted a notice of withdrawal from the licence to Statoil following receipt of a further drilling proposal on the Gymir prospect on licence PL602.

By withdrawing from the PL602, the company will give up its interest of 7.5% in the licence, including the Roald Rygg discovery.

Atlantic Petroleum CEO Ben Arabo said: "After initial encouragement, our current view on the marginal economics on Roald Rygg combined with expected long lead time to start of production has led to the decision to withdraw from PL602.

"The further drilling of small accumulations scheduled for production in 2024 is a marginal project at the current time, and an inefficient use of funds and resources in the current period of low oil price."

The company plans to continue to focus on opportunities in the Norwegian Sea Aasta Hansteen area.

Repsol operates PL802 with a 40% stake, and the partnership will also include Eon with 20%, OMV (20%) and Atlantic Petroleum (20%).

Located north-east of the Asterix discovery, the licence comprises several prospects within the Upper Cretaceous play system.

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