Set for an IPO in 2005, the Faroese oil company, Atlantic Petroleum, together with Geysir Petroleum, was awarded two new licenses in the Faroes' second licensing round.

In the second oil licensing round in the Faroes, Atlantic Petroleum was awarded two new licenses for oil and gas exploration. In cooperation with Icelandic Geysir Petroleum, the Faroese oil company applied for four license areas offshore from the Faroes, and the two licenses awarded cover approximately the same areas.

The license areas are situated close to the UK border in blocks 6104/9, 10, 14 for license 014, and blocks 6103/11, 12, 13, 17, 7 (part), 8 (part) for license 013. “Seismic research of the areas indicate several interesting structures,” Atlantic Petroleum said in a press release, referring to ChevronTexaco’s recent find in the immediate proximity, on the UK side of the border.

Atlantic Petroleum’s share in licenses 013 and 014 is 40 percent, with Geysir Petroleum as operator in both licenses. The companies have obliged themselves to, firstly, gather more data from the areas, and decision on possible drilling action is to be taken by the conclusion of the four-year license period.

Atlantic Petroleum was formed in 1998 by 18 private Faroese investors . Its corporate shareholders represent most of the major Faroese business sectors. The company participates in exploration in the Faroese and the UK sector of the North Sea, with minority shares in eight licenses.

The listing of Atlantic Petroleum on ICEX and the VMF was announced to be in January-February 2005, but was delayed slightly. “Most things are in place, but the company waits with the listing until after the Annual General Meeting, which will be held late March or early April,” said Atlantic Petroleum’s managing director Wilhelm Petersen. In December 2004, the company in its third share offering raised around DKK 28 [EUR 3.75 / USD 5] million in nominal value.

Mr Petersen noted: “We are very proud with the outcome of the share offering. It provides us with a financial base on which to continue the development of our present fields in the UK part of the North Sea and the expansion of our activities to other parts of North Sea. Today we have ongoing operations in Faroes and the UK and we are considering options in Norway and Denmark.”