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Atlantic walks away from Anglesey

The slump in oil prices and rising exploration costs have forced Faroese player Atlantic Petroleum to relinquish its stake in P1211, which hosts the Anglesey prospect in blocks 14/9a &14/14b, in the UK sector of the North Sea.

The company had planned to drill Anglesey late last year or early this year.

Atlantic's managing director Wilhelm Petersen said: "Atlantic Petroleum's cost exposure related to the well was potentially significant. Hence, we have found it prudent not to continue in this licence.

"The relinquishment also fits very well with our short term strategy, of postponing or reduce our overall exploration activities until actual exploration costs have been aligned with current oil price expectations following the present global economic turmoil."

The licence was held by Granby Enterprises (operator), a wholly-owned subsidiary of Silverstone Energy, (33.34%), Atlantic (33.33%) and Fox Energy Exploration (33.33)%.

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