Atlantic Petroleum, which is based in Denmark's Faroe Islands sold its Norwegian business to start-up M Vest Energy for one Norwegian krone, or 10p.
That's roughly equivalent to the cost of a "bag for life", a chew sweet or an onion.
The company said it will be forced to take an impairment charge of around £15.5m as a result of the deal.
Atlantic Petroleum began to look into alternative options after failing to attract bids for itself, or parts of the company, last year.
"The sale of its Norwegian activities is a step in the process of trying to resolve the issues facing the group in the current oil and gas industry market conditions," Ben Arabo, chief executive, said.
"We believe the transaction is in the best interest of all stakeholders of the company and we are pleased that the activities in APN will be continued through M Vest Energy."
Reduced demand coupled with an oversupply of oil has sent crude prices down over 60 per cent since the middle of 2014.
This has heaped pressure on oil companies' balance sheets forcing them to cut costs, scale back and even halt projects and axe jobs to stay afloat.