The transaction involves a 2% revenue share of the total Orlando production revenue until the field has produced 5 MMbbl of oil. Thereafter, the revenue share to Atlantic rises to 4.35% of the total Orlando field revenue.
In addition, $1 million of the initial 2% revenue share will be pre-paid on completion of the agreement.
Atlantic Petroleum will not participate in or co-fund the development of Orlando, so its only involvement will be to receive its share of the sale proceeds when the field starts production.
In March 2015, Gaffney Cline and Associates estimated that the field holds 8.5-15.3 MMbbl recoverable. Initial production, probably in 2018, will likely be more than 10,000 b/d, via subsea facilities tied back toCanadian Natural’s Ninian complex.