Atlantic Petroleum said it has entered into a sale and purchase agreement with Bridge Petroleum for its 24% interest in the Orlando development.
The deal is contingent on Bridge Petroleum acquiring Iona UK Limited.
Atlantic Petroleum said when the deal is complete it 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.
Chief executive 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.”