Atlantic Petroleum UK Limited says that Centrica Energy on behalf of the Chestnut joint venture (Licence P.354) has entered into a further agreement with Teekay Hummingbird Production Limited, to secure the use of the Hummingbird Spirit FPSO until end March 2016 and thereby extend the Chestnut Field life by at least a further year.

The contract extension comes on the back of significantly better than expected reservoir performance which indicates that the field will continue to produce at economic rates for at least another year beyond previous expectations. Work undertaken by Centrica Energy has increased the current estimate of recoverable reserves to around 18 million barrels.

CEO Ben Arabo said 'We are delighted that the Chestnut joint venture has been able to agree this contract extension with Teekay. The excellent field performance and future projections have given us confidence to commit to securing the vessel for at least another year. We look forward to working with the joint venture to examine ways to further enhance the recovery from the Chestnut Field in the future.'

Tags: Atlantic Petroleum