Atlantic Petroleum UK Ltd., subsidiary of Atlantic Petroleum, signed a sale and purchase agreement for its interests in blocks in the Pegasus West gas discovery, Atlantic Petroleum said May 7.

Third Energy Offshore Ltd. will purchase Atlantic Petroleum’s 10% working interests in the blocks for 16.5 million British pounds, 7.5 million of which will be paid on completion.

Atlantic Petroleum holds interests in P1724 (UK Block 43/13b, containing Pegasus West), P1727 (UK Blocks 43/17b and 43/18b) and P2128 (Block 43/12).

Remaining payments are conditional on production from Pegasus West and further development in the blocks, Atlantic Petroleum said.

Pegasus West Well 43/13b-7 was drilled and tested at a combined rate of 91 MMcf/din late 2014. Well 43/13b-7 is about 7 km west-southwest of of the 43/13b-6Z Pegasus North discovery well. Both wells are in P1724, close to the producing Cavendish Field.

Centrica North Sea Gas operates the licenses and holds 55% equity. Atlantic Petroleum holds 10% equity and the remaining equity 35% is held by Third Energy Offshore.

Offshore