P/F ATLANTIC PETROLEUM ANNUAL AND CONSOLIDATED REPORT AND ACCOUNTS

YEAR TO 31ST DECEMBER 2024

Faroese Company Registration No/VAT No: 2695/475653

Performance Summary 4
Chairman's Statement 5
Chief Executive Officer's Statement 6
2025 Outlook 7
Atlantic Petroleum Group Structure 7
Project Portfolio 8
Development & Production 8
Exploration & Appraisal 8
Directors' Report 9
Statement by Management on the Annual and Consolidated Report and Accounts 20
Independent Auditor's Report 21
Consolidated Financial Statements 26
Consolidated Income Statement 27
Consolidated Statement of Comprehensive Income 28
Consolidated Statement of Financial Position 29
Consolidated Statement of Changes in Equity 30
Consolidated Statement of Cash Flows 31
Notes to the Consolidated Accounts 32
Parent Company Income Statement 54
Parent Company Statement of Comprehensive Income 55
Parent Company Financial Position 56
Parent Company Statement of Changes in Equity 57
Parent Company Cash Flow Statement 58
Parent Company Notes to the Accounts 59

PERFORMANCE SUMMARY

KEY METRICS 	3 months to 31st Dec	3 months to 31st Dec	Full year	Full year
DKK 1,000	2024	2023	2024	2023

Income statement
Revenue	0	0	0	0
Impairment on producing assets	0	0	0	0
Gross loss/profit	0	0	0	0
Exploration expenses Earning before interest, tax, depreciation, amortization	0	0	0	0
and exploration expense (EBITDAX)	-1,122	-16,815	945	-16,760
Operating loss (EBIT)	-1,122	-16,815	945	-16,760
Depreciations	0	0	0	0
Loss before taxation (EBT)	-1,652	-19,270	-2,430	-20,731
Profit/Loss after taxation	2,174	-19,270	1,396	-20,731
Financial position
Non-current assets	7,620	11,916	7,620	11,916
Current assets	8,271	14,086	8,271	14,086
Total assets	15,891	26,002	15,891	26,002
Current liabilities	105,038	118,242	105,038	118,242
Non-current liabilities	23,658	23,647	23,658	23,647
Total liabilities	128,696	141,889	128,696	141,889
Net assets/Equity	-112,805	-115,886	-112,805	-115,886
Cash flow and cash
Cash provided by operating activities	305	40,316	445	1,737
Change in cash and cash equivalents	-217	-1,105	-2,892	-2,193
Cash and cash equivalents	31	1,136	31	1,136
Bank debt – excluding drawdown	59,434	59,438	59,434	59,438

Share related key figures
Earnings per share Basic	0.59	-5.21	0.38	-5.61
Earnings per share Diluted	0.59	-5.21	0.38	-5.61
Share price in DKK on OMX CPH	1.57	2.71	1.57	2.71

CHAIRMAN'S STATEMENT

Outlook in 2025

Production rates for 2024 from the Orlando field, Atlantic Petroleum's single cash generating asset, were 2,800 – 3,200 barrels of oil per day which was in line with Atlantic Petroleum's expectations.

Atlantic Petroleum receives a 2% revenue share in deferred consideration from the Orlando field production up to the first 5MM barrels of Orlando production. Thereafter the deferred consideration increases to 4.35% of the sales proceeds. The deferred consideration receivable was valued at DKK 16.0MM at year-end 2024.

The expectation is that the Orlando field will continue to produce at stable rates in 2025. The Company expects to be cash generating in 2025. This is based on the forecasted Orlando production, oil prices and exchange rates at year-end. Therefore, the actual outcome may differ materially from the forecast.

Following a lengthy process Atlantic Petroleum reached an agreement on the 4th April 2025 with its main creditors to reduce the Company's debt. The total debt will be reduced by at least DKK 90MM after finalization of the debt restructuring.

The activity level in Atlantic Petroleum has been kept to a minimum these past years to limit costs as much as possible. The G&A cost for the year 2024 was DKK 2.4MM. The cashflow situation in the Group will still be tight in 2025, and the activity level will be kept at a minimum in the near future.

The Board sees the debt restructuring as a pre-requisite for the company to continue. Having a potential avenue to repay debt, could make it possible for the Group to raise capital, should the right opportunity arise and should the market conditions be favourable.

The Orlando field, being a subsea tie-back to Ninian, is becoming a mature asset reaching the end of its life. The Group is not party to any discussions on decommissioning and has assumed, in preparing its forecasts and valuing the royalty, that production continues to the end of 2026.

Given the relative short lifespan remaining on the Orlando field, it is necessary for Atlantic Petroleum to replace it to grow in the future. Therefore, the Board will prioritise reviewing new possible opportunities in the market in 2025.

Given the pending agreement on the debt restructuring, the projections prepared by the Directors and review of future opportunities once the debt restructuring is completed, the accounts have been prepared on a going concern basis.

The ability of the Group to continue as a going concern is dependent on the finalization of the debt restructuring, and the cash flows generated from the interest in the Orlando field. In the event, that the Group is unable to continue to trade, significant downward adjustments would be required to the fair value of the Group's economic interest in the Orlando asset to present the value of these assets on a break-up basis.

Ben Arabo Chairman of the Board 30 th April 2025

CHIEF EXECUTIVE OFFICER'S STATEMENT

The Orlando field production initially commenced in March 2019. Production proved significantly lower than the expected. Therefore expected cashflow did not materialise. Further challenges and production issues delayed production in 2022, however the Orlando field is now producing.

The year 2024 was the second successive year with stable production from the Orlando field.

The deferred consideration receivable is now valued at DKK 16.0MM. Further details on the deferred consideration receivable from the sale of Orlando is included in note 19 to the consolidated accounts.

General and administration costs in 2024 were DKK 2.4MM compared to DKK 2.3MM in 2023.

The main focus this year has been getting a solution on the bank debt from Betri Banki and the convertible debt from London Oil and Gas in Administration.

The board and main creditors have reached a framework agreement to reduce the total debt by more than DKK 90 million, pending final agreements.

The Group has prepared financial projections for 2025 to quantify available cash to meet the Group's general and administrative costs, interest costs and working capital commitments.

There remains a material uncertainty regarding the going concern status of the Group. The ability of the Group to continue as a going concern is dependent on a finalization of the debt restructuring, and ongoing cash flows from the Orlando field royalty. These cash flows are dependent on production volumes, oil prices and the availability of the Ninian Central platform as an export route for the oil produced from the Orlando field.

Mark T. Højgaard CEO Tórshavn 30 th April 2025

2025 OUTLOOK

Production from the Orlando field is expected to produce stable cash flow in 2025 to further efforts to refinance the Company. A framework agreement on the bank debt and the convertible loan facility from London Oil and Gas in Administration, were achieved in March 2025, pending final agreements.

Production albeit lower than initially expected is now generating cash to Atlantic Petroleum. Orlando was expected to deliver around 10,000 bopd when developed, but actual production has been lower. Following a successful workover production recommenced in Q3 2022 and the production has been stable since, and production is expected to be remain stable in 2025.

Following finalization of the debt solution, the Group will be actively pursuing growth through participation in production or near production assets in low political risk countries in the Northern Hemisphere.

ATLANTIC PETROLEUM GROUP STRUCTURE

The Atlantic Petroleum Group comprises the Faroes based parent company P/F Atlantic Petroleum and its tree 100% owned subsidiaries in UK and Ireland.

P/F Atlantic Petroleum is listed on NASDAQ OMX Copenhagen under the ticker ATLA DKK.

PROJECT PORTFOLIO

SECURING REMAINING VALUE

The strategy for 2025 will be to pursue near production or production opportunities in low political risk countries in the Northern Hemisphere.

As of January 1st 2025 the status of Group assets is:

Country	License	Field/Discovery/Prospect	Company	Equity	Comments
Ireland	SEL 2/07	Hook	AP I	18.33%	Comerciality being
		Head/Dunmore/Helvick			reassessed

DEVELOPMENT & PRODUCTION

PRODUCING ASSETS

The Group does not hold producing assets. The Group received a revenue share of 2% from the UK Orlando field, increasing to 4.35% when gross field production reaches 5MM barrels.

DEVELOPMENT & NEAR DEVELOPMENT

The Group holds no Development or near Development assets.

EXPLORATION & APPRAISAL

Atlantic Petroleum has no exploration activity planned for 2025 and does not consider exploration a fiscally acceptable risk fo the Group in the near future.

DIRECTORS' REPORT

Financial Review

Going Concern

It was advised on the 22nd of March 2019 that LOG, the group's main lender, had entered into administration and would not advance further funds under the facility agreement. The terms of the LOG facility restrict the Group from seeking alternate funding means, however these restrictions were lifted by LOG's administrators. Atlantic Petroleum secured a bridging loan of DKK 7.5MM in March 2022, and repayments commenced during 2023, continuing during 2024. Repayments of the LOG facility commenced in 2023, continued in 2024 and expected to continue in 2025.

A resolution on the Group´s debt is the first step to address the deficiency in shareholders' funds. Shareholder´s funds amounted to DKK -112.8MM at the end of 2024 (2023: DKK -115.9MM).

The board and main creditors have come to a framework agreement, whereby the total debt will be reduced by more than DKK 90 million.

The framework suggests that all bank debt, exceeding DKK 1.5MM, will be written off. The convertible loan facility, will in part be converted to shares, resulting in London Oil and Gas (in administration) becoming a major shareholder with 795,712 shares, equalling 17.7% of the total shares. The remaining debt on the convertible loan facility will be written down to 1,1MM GBP. And the remaining bridge loan will be written down to 2MM DKK.

The debt reduction is subject to final agreement. The terms of the debt restructuring are designed to allow the group to continue to trade whilst utilising its free cash flows to repay the restructured debt. The directors have prepared projections which show that the company is forecast to repay the group's liabilities in full. These projections are subject to a number of uncertainties and the actual cash flows may differ materially from the forecast cash flows.

The ability of the Group to continue as a going concern is dependent on a finalization of the debt restructuring, and the cash flows generated from the interest in the Orlando field. The cash flows generated from the Orlando field royalty depend on production volumes and oil prices. The Orlando field is a subsea tieback to the Ninian Central platform, which the Operator intends to decommission. When the platform is decommissioned, Orlando production will cease, and there will be no further royalties. The Group is not a party to any discussions on decommissioning and has made the assumption, in preparing its forecasts and valuing the royalty, that production continues until the end of 2026.

Repayments to the company's creditors continue during 2025, however, the debt restructuring is not finalized, the Directors believe that finalization of the agreed upon framework will be in place in May 2025. For this reason, and given the continuing repayment of liabilities, forecast to continue during 2025 based on continuing royalty receipts, the accounts have been prepared on a going concern basis.

The deferred consideration receivable on the Orlando field is valued at DKK 16.0MM at 31 December 2024.

Remaining reserves are estimated to 1.3 MMBbl as of 31st December 2024. The estimation is based on the latest disclosure by the Operator of the Orlando field, estimating reserves at 1st January 2024 to 2.4 MMBbl, disclosed in April 2024, and production during 2024 of 1.1 MMBbl.

Consolidated Income Statement

The result after tax for 2024 was a net profit of DKK 1.4MM (2023: loss of DKK 20.7MM).

The Group had a gross profit of DKK 0MM in 2024 (2023: Gross profit of DKK 0MM).

Exploration expenses amounted to DKK 0.0MM in 2024 (2023: DKK 0.0MM).

General and administration costs amounted to DKK 2.4MM in 2024 (2023: DKK 2.3MM).

Loss before taxation was DKK 2.4MM in 2024 (2023: loss of DKK 20.7MM).

Total shareholders' equity amounted to DKK -112.8MM at the end of 2024 (2023: DKK -115.9MM).

Net cash provided from operating activities amounted to DKK 0.5MM in 2024 (2023: DKK 1.7MM).

Cash and cash equivalents totalled DKK 0.0MM at the end of 2024 (2023: DKK 1,1MM).

Consolidated Statement of Financial Position

Total assets at the end of 2024 amounted to DKK 15.9MM (2023: DKK 26.0MM).

Consolidated Assets

Exploration and evaluation assets amounted to DKK 0 at the end of 2024 (2023: DKK 0MM).

Development and production assets amounted to DKK 0MM at the end of 2024 (2023: DKK 0MM).

Trade and other receivables were DKK 8.2MM at the end of 2024 (2023: DKK 13.0MM). All trade and other receivables are due within one year except for the Orlando deferred consideration DKK 16.0MM, of which DKK 8.3MM is expected to be due within one year.

Cash and cash equivalents totalled DKK 0.0MM at the end of 2024 (2023: DKK 1.1MM).

Consolidated Liabilities

Total liabilities amounted to DKK 128.7MM at the end of 2024 (2023: DKK 141.9MM).

Total current liabilities totalled DKK 105.0MM at the end of 2024 (2023: DKK 118.2MM).

Short term bank debt amounted to DKK 59.4MM (2023: DKK 59.4MM). Trade and other payables amounted to DKK 45.6MM (2023: DKK 55.1MM).

Tax payable totalled DKK 0.0MM at the end of 2024 (2023: DKK 3.7MM)

Total non-current liabilities amounted to DKK 23.7MM at the end of 2024 (2023: DKK 23.6MM).

Deferred tax liability totalled DKK 0.0MM at the end of 2024 (2023: DKK 0.0MM)

Non-current liabilities also consist of long-term provision for abandonment costs of three wells in Ireland.

Consolidated Equity

Total shareholders' equity amounted to DKK -112.8MM at the end of 2024 (2023: DKK -115.9MM).

Cash Flow

Net cash provided from operating activities amounted to DKK 0.5MM in 2024 (2023: DKK 1.7MM).

Capital expenditures in the period were DKK -3.3MM (2023: DKK -4.0MM).

Net Cash Position

At the start of 2024, the net cash position, amounted to DKK 1.1MM. At year end 2024 this had decreased to a net cash position of DKK 0.0MM

Significant Events after the Balance Sheet Date

The board and main creditors have reached a framework agreement to reduce the total debt by more than DKK 90 million, pending final agreements.

The framework suggests that all bank debt, exceeding DKK 1.5MM, will be written off. In regard to the convertible loan facility, this will in part be converted to shares, resulting in London Oil and Gas (in administration) becoming a major shareholder with 795,712 shares, equalling 17.7% of the total shares. The remaining debt on the convertible loan facility will be written down to 1,1MM GBP. And the remaining bridge loan will be written down to 2MM DKK.

Risk Management

Evident from the preceding pages of this year's report, the challenges seen since 2015 have resulted in a stronger basis from which the Group can operate. However, this is clouded by the status of London Oil and Gas and its ability to honour its funding commitments. The Board will pursue an alternative arrangement to fill the future funding requirements alongside projected revenues in order to protect shareholder value.

Atlantic Petroleum is typically exposed to a number of different market and operational risks arising from core business activities. The risks can be internal as well as external in nature.

Market risks also include changes in currency exchange rates and interest rates. The changes can affect the value of the assets, liabilities and future cash flows.

Foreign currency

The Group reports in DKK, which means exchange rate exposure related to USD, GBP and EUR. Operational currency risks relate to oil sales, gas sales and operating costs. On the investment side, the Group is also exposed to fluctuations in USD, GBP and EUR exchange rates as the Group's most material investments in oil and gas assets are made in these currencies.

Credit risk

Where Atlantic Petroleum has sums deposited in short-term bank accounts in USD, GBP, and DKK there may be a currency and a credit risk attached to such cash balances (bank deposits).

Operational risk

Through its core business Atlantic Petroleum may become exposed to operational risk including the possibility that the Group may experience, among other things, a loss in oil and gas production or an offshore catastrophe. The Company works with and will monitor operators and partners to ensure that HSE and asset integrity are given the highest priority. The Group also has an insurance programme in place to cover the potential impact of any catastrophic events.

Atlantic Petroleum has traditionally operated in the, United Kingdom, the Republic of Ireland and the political climate in these countries is perceived as being stable.

Insurance

The Group had in place an insurance package covering equipment, subsurface facilities and operation and as and when required, the Group had insurance cover on offshore pollution and third party liability.

In view of the Company having relinquished its last operational license in the UK and as the licenses in Irish waters are not yet subject to appraisal or development the Company has, as a cost reducing level and based on advice, decided to suspend the above elements of its programme.

The Company does however continue to hold coverage that includes business interruption coverage, covering a proportion of the cash flow arising from revenue producing fields.

The Group is confident that its insurance policies cover the overall insurance requirement of the current business and provides insurance cover for the Group's general and standard risk exposure in relation to property damage, personal injury and liability.

Corporate Social Responsibility

Corporate Social Responsibility (CSR) Policy

Atlantic Petroleum's culture and operating activities are conducted with a high priority for ethical standards. Being a responsible company in all of our operations is an integral part of Atlantic Petroleum and we continue to implement high ethical and practical standards in all our activities.

Atlantic Petroleum is committed to the review and continuous improvement of corporate social responsibility and environment, health and safety performance. To meet these commitments, we will operate in accordance with the following principles:

Conduct our business activity in compliance with the law.
Act openly and honestly in business dealings.
Comply with best practice in our corporate governance.
Behave responsibly and with sensitivity to local communities in all areas where we operate.
Provide sustainable benefits and avoid the creation of a dependency culture.
Integrate CSR and EHS responsibility throughout our activities.
Recognise that all parties working on Atlantic Petroleum's behalf can impact our operation and reputation and that we all share a common responsibility.
Ensure, wherever possible, that our partners' approach to CSR is compliant with our own standards.
Monitor and review our CSR and EHS policies and procedures as appropriate to ensure suitability and effectiveness.
Use continuous assessment to ensure our CSR activities meet identified performance objectives.

Environment, Health and Safety (EHS) Policy

Atlantic Petroleum's activities are undertaken with integrity, responsibility and respect for the environment and the community in which these activities take place. This entails conducting operations in an ethically and practically sound manner that minimises risks and places high priority on the safety of those involved in Atlantic Petroleum's oil and gas operations.

Atlantic Petroleum is committed to:

Comply with all applicable Environment, Health and Safety (EHS) laws, regulations and standards and to apply responsible standards where legislation is inadequate or does not exist.
A systematic framework of hazard identification and risk assessment through which safe operations can be managed.
Develop effective EHS management systems to identify and manage risks associated with its activities by focusing on risk avoidance and prevention.
Establish accountability and responsibility for EHS within organisational line management.
Provide training, equipment and facilities necessary to maintain a safe and healthy worksite.
Practice pollution prevention and seek viable ways to minimize the environmental impact of operations, reduce waste, conserve resources and respect biodiversity.
Protect and minimise any harm to the environment in our oil and gas activities, and continuously focus on improving our environmental procedures.
Monitor and review our CSR and EHS policies and procedures as appropriate to ensure suitability and effectiveness.
Ensure that partners and contractors' policies and activities are compliant with our own standards, and recognise that all working on our behalf can impact our operation and reputation and that we all share a common responsibility for our safety.

Shareholder Information

Atlantic Petroleum aims to maintain a regular dialogue with the shareholders through the formal channel of stock exchange announcements, interim reports, annual reports, Annual General Meetings and presentations to investors and analysts.

Group Board

Ben Arabo, Chairman Mourits Joensen, Deputy Chairman Mark T. Højgaard – Board Member

Management Mark T. Højgaard, CEO

At year end 2024 Atlantic Petroleum was listed on NASDAQ OMX Copenhagen.

Trading in Atlantic Petroleum shares can be done by contacting:

Members of NASDAQ OMX Copenhagen
A stockbroker or a financial institution

NASDAQ OMX ticker:	ATLA DKK
Bloomberg ticker:	ATLA IR
Reuters ticker:	FOATLA.IC

Financial calendar

Friday 23rd May: Annual General Meeting.
Friday 30 th May: 1st Quarter 2025 Condensed Consolidated Interim Report to be issued.
Friday 29th August: 2nd Quarter 2025 Condensed Consolidated Interim Report to be issued.
Friday 28 th November: 3rd Quarter 2025 Condensed Consolidated Interim Report to be issued.

Share Price 2024

P/F Atlantic Petroleum has its main listing on NASDAQ OMX Copenhagen. The year 2024 started with a share price of DKK 2.71. The closing price at year end was DKK 1.57.

Further information about the Group is available on Atlantic Petroleum's website www.petroleum.fo.

Please address enquiries related to the stock market and investor relations to:

Atlantic Petroleum Tel.: + 298 591601 E-mail: [email protected]

Auditors

The consolidated accounts for 2024 have been audited by JANUAR State Authorised Public Accountants P/F. The financial statements of the subsidiary companies for the year ended 31st December 2023, Atlantic Petroleum UK and Atlantic Petroleum North Sea were audited by Anderson Anderson & Brown LLP in Aberdeen and Atlantic Petroleum (Ireland), for the year ended 31st December 2023, were audited by KPMG in Dublin.

Results and Dividends

The Group's result after taxation for the year amounted to a profit of DKK 1.4MM (2024: loss of DKK 20.7MM). Payment of a dividend is not proposed.

Shareholders Capital and Vote

The issued share capital in Atlantic Petroleum is DKK 3,697,860 consisting of 3,697,860 fully paid shares, each with a nominal value of DKK 1.

Each share holds one vote and all shares have the same rights. For more details, please refer to the articles of associations of the Parent Company which can be found on the Company's website www.petroleum.fo.

Dematerialisation of paper shares

In October 2005, Atlantic Petroleum commenced dematerialisation of paper shares. All shares issued before 2004 (paper shares) have been called in for electronic registration. As at 31st December 2024, there were paper shares in issue with the nominal value of DKK 6,665 The process to convert the shares into electronic registration is scheduled to continue in 2025.

Distribution of Share capital

By year end 2024 Atlantic Petroleum had around 7,000 shareholders representing more than 30 countries. The majority of the share capital was represented by Danish and Faroese investors.

Substantial Shareholders

At 31st December 2024, there were no shareholders listed according to §28 b in the Companies Act:

Any listed shareholder holds interests in excess of 5% of the issued ordinary share capital of the Parent Company.

Director Profiles

Ben Arabo	Mourits Joensen	Mark T. Højgaard
Chairman of the Board of P/F Atlantic Petroleum	Deputy Chairman of P/F Atlantic Petroleum	Board Member of P/F Atlantic Petroleum
Ben Arabo has more than 20 years of experience from the oil and gas industry. He was the CEO of Atlantic Petroleum for 7 years from 2010 – 2017. Before joining Atlantic Petroleum in 2010 he worked for the American independent oil and gas company Hess Corporation for 14 years in various roles and	Mourits Joensen has more than 15 years of commercial and financial experience from various positions in financial management, banking and statistics. He was the CFO of Atlantic Petroleum 2010 – 2015. Prior to joining Atlantic Petroleum he held the position as Finance and Administration Manager of the	Mark T. Højgaard has more than 20 years of experience in auditing and accounting. Mark T. Højgaard is licensed as Certified Public Accountant in the Faroe Islands and serves concurrently as CEO/Partner of Grannskoðarastovan í Runavík Sp/f.
in various locations.	Faroese Employment Service Fund.	Mark T. Højgaard has a MSc in Business Administration and Auditing.
Ben Arabo has a MSc in International	Mourits Joensen has a MSc in Economics and	Mark took up his position as CEO of Atlantic
Business	a MBA in Business.	Petroleum on 24th May 2019.
Number	Number	Number
of	of	of
shares	shares	shares
held	held	held
in	in	in
Atlantic	Atlantic	Atlantic
Petroleum:	Petroleum:	Petroleum:
Holds directly and indirectly 2,451 shares at year-end 2024 – no change in portfolio in	Holds directly and indirectly 334 share at year end 2024 – no change in portfolio in 2024.	Holds no shares at year-end 2024 – no change

in portfolio in 2024.

As a matter of Corporate Governance the independence of the Directors is evaluated yearly.

All of the Board members are independent of the Company.

Board Meetings

2024.

In 2024, the Board of P/F Atlantic Petroleum held 33 board meetings, including tele meetings.

Management Profiles

Mark T. Højgaard

CEO of the Atlantic Petroleum Group

Mark T. Højgaard has more than 20 years of experience in auditing and accounting. Mark T. Højgaard is licensed as Certified Public Accountant in the Faroe Islands and serves concurrently as CEO/Partner of Grannskoðarastovan í Runavík Sp/f.

Mark T. Højgaard has a MSc in Business Administration and Auditing.

Mark took up his position as CEO of Atlantic Petroleum on 24th May 2019.

Number of shares held in Atlantic Petroleum:

Holds no shares at year-end 2024 – no change in portfolio in 2024.

Directors' Interests and Remuneration

Beneficial interests of the Board of Directors holding office at the year-end, related parties and indirect holdings of the Group are set out below:

There are no Board of Director beneficial interest of holding during the period.

The Board of Directors do not receive any share related compensation from the Group.

CEO's Interests and Remuneration

Beneficial interests of the CEO holding office at the year-end, related parties and indirect holdings of the Group are set out below:

There has been no CEO beneficial interest or holding during the period

Stock Exchange Announcements 2024

Please refer to www.petroleum.fo where the announcements to the stock exchanges can be read in full.

CORPORATE GOVERNANCE REPORT

As a Faroese registered company listed on NASDAQ OMX Copenhagen, Atlantic Petroleum is obliged to comply with Faroese, Danish, securities law and stock exchange rules. The stock exchange rules require listed companies to take a position on corporate governance recommendations on a "comply or explain" basis. As a dual listed company, Atlantic Petroleum has chosen to base the corporate governance policy on the highest standard and thus follows both the recommendations on NASDAQ OMX Copenhagen, with the exemptions summarised below: Atlantic Petroleum has reviewed and implemented recent changes and recommendations on Corporate Governance.

A summary of Atlantic Petroleum's non-compliance procedure and recommendations are stated below. Further information is available on the Company's website, www.petroleum.fo

Openness and Transparency

Information and publication of information:

Because of the Group's international operations, all information is published in English and, where required, Faroese.

Retirement Age

The Supervisory Board has not found it necessary to lay down a retirement age for the Supervisory Board members. The annual report contains information about the age of the Supervisory Board members.

Election Period

The members of the Supervisory Board are elected for 1 year at a time. Re-election is allowed. For the time being there is no limit of how often Board members can be re-elected.

REMUNERATION OF THE MEMBERS OF THE SUPERVISORY BOARD AND THE EXECUTIVE BOARD:

Whilst the undernoted Group remuneration policies remain, they were in effect suspended throughout most of 2023 given the market conditions, the challenges facing the Group and the downsizing activities undertaken. The key actions on remuneration in 2024 were, where-ever possible, to freeze management and staff salaries and board fees, make no bonus award nor make any LTIP awards for 2024. Towards the end of 2022 remuneration of Board members was re-instated.

Remuneration Policy

Remuneration to the members of the Supervisory Board and the Executive Board is on the same level as comparable companies in order to attract, retain and motivate the members of the Supervisory Board.

Remuneration Policy for Senior Executives of Atlantic Petroleum

Overall Aim

The aim of Atlantic Petroleum's (the "Company") Remuneration Policy for senior executives is to provide a reward framework which ensures that key executives are appropriately attracted, retained and motivated and which is fit for purpose in the markets in which the Company operates and where it and its peer groups are listed.

Remuneration Strategy

The Company's remuneration strategy is to provide a competitive remuneration package which rewards Directors and employees fairly and responsibly for their contributions and aims to deliver superior remuneration for superior performance.

The total reward package will consist of elements such as Salary, Annual Performance Bonuses, Long Term Incentives and Pension Contributions and Other Benefits.

The guiding principles behind the setting and implementation of this policy are that:

Balanced

There should be an appropriate balance between fixed and performance-related elements and the provision of equity over the longer-term and which focuses executives on delivering the business strategy;

Competitive

Remuneration packages should be sufficiently competitive taking into account the level of remuneration paid in respect of comparable positions in similar companies within the industry;

Equitable

There should be an appropriate level of gearing in the package to ensure that executives receive an appropriate proportion of the value created for shareholders while taking into account pay and conditions throughout the remainder of the Group and where the Company operates and is listed;

Risk-weighted

Remuneration should not raise environmental, social or governance risks by inadvertently motivating irresponsible behaviour. More generally, the overall remuneration policy should not encourage inappropriate operational risk; and

Aligned

Executives will be encouraged to build a meaningful holding in the Company to further align their interests with those of shareholders.

The Remuneration Committee will review on an annual basis whether its remuneration policy remains appropriate for the relevant financial year. Factors taken into account by the Remuneration Committee will include:

overall corporate performance;
market conditions affecting the Company;
the recruitment market in the Company's sector;
changing market practice; and
changing views of institutional shareholders and their representative bodies.

Base Salary

One salaried staff was employed

Annual Performance Bonus

No bonuses were paid for the 2024 Financial Year.

Long Term Incentive Plans

No Longterm Incentive Plans existed during the 2024 Financial Year

Share Based Payments

No Share Based payments were made during the 2024 Financial Year

Additional Benefits

No additional benefits were applied during the 2024 Financial Year.

Non-Executive Directors Fees

The Non-Executive Director ("NED") fees will be structured as follows:

A base fee will be paid for carrying out day to day duties as an NED; and
Additional fees will be provided for extra responsibilities, for example chairing the Audit, Nominations or Remuneration committees.

Fees should be sufficiently competitive taking into account the level of remuneration paid to Non-Executives in similar companies within the industry.

These policies were implemented in 2012 but are currently not active.

STATEMENT BY MANAGEMENT ON THE ANNUAL AND CONSOLIDATED REPORT AND ACCOUNTS

The Management and Board of Directors have today considered and approved the Annual and Consolidated Report and Accounts of P/F Atlantic Petroleum for the financial year 1st January 2024 to 31st December 2024.

The Annual Report has been prepared in accordance with International Financial Reporting Standards as adopted by the EU, the financial reporting requirements of NASDAQ OMX in Copenhagen, and additional Faroese disclosure requirements for annual reports of listed companies.

In addition, in our opinion the approved the Annual and Consolidated Report and Accounts of P/F Atlantic Petroleum for the financial year 1st January 2024 to 31st December 2024 with the file name 213800K4T6SRZ1RQDO38-2024-12-31-en.zip in all material aspects is prepared in accordance with ESEF Regulation.

In our opinion, the accounting policies used are appropriate and the Annual and Consolidated Report and Accounts give a true and fair view of the Group's financial positions at 31st December 2024 as well as the results of the Group's activities and cash flows for the financial year 1st January 2024 to 31st December 2024.

Tórshavn 30 th April 2025

Management:

Mark T. Højgaard CEO

Board of Directors:

Ben Arabo Mourits Joensen Mark T. Højgaard Chairman Deputy Chairman Director

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of P/F Atlantic Petroleum

Report on the Audit of Consolidated financial statements and parent company financial statements.

We have audited the consolidated financial statements and the Parent Company Financial Statements of P/F Atlantic Petroleum, for the year ended 31 December 2024, which comprise the Income statement, Statement of comprehensive income, Statement of changes in equity, Cash flow statement and the related notes, including a summary of significant accounting policies for the financial year 1 January to 31 December 2024 in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Faroese Financial Statements Act.

Collectively referred to as the 'Financial Statements'.

Qualified opinion on the Consolidated financial statements

In our opinion, the Annual and Consolidated Financial Statement, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the Consolidated Financial Statements give a true and fair view of the Group's financial position at 31 December 2024 and of the results of the Group's operations and cash flows for the financial year 1 January to 31 December 2024 in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Faroese Financial Statements Act.

Our opinion on the parent company Financial Statement

In our opinion, the Parent Company Financial Statements give a true and fair view of the Parent Company's financial position at 31 December 2024 and of the results of the Parent Company's operations and cash flows for the financial year 1 January to 31 December 2024 in accordance with the Faroese Financial Statements Act.

Our opinion is consistent with our auditor's long-form report to the audit committee and the board of directors.

Basis for qualified Opinion

We have been unable to obtain the necessary up to date third party audit evidence to substantiate the estimates made by the management regarding the deferred consideration receivable held at 31 December 2024, which is included in the balance sheet at 16,0 mDKK and linked to the Production of the Orlando Field. These estimates have been disclosed in Note 19 and are based on, and consistent with, information disclosed by the Operator in April 2024. Atlantic Petroleum is no longer a joint venture partner of the Orlando field and, therefore, management are no longer party to the Operator's more recent reports and production models relating to the 2P recoverable reserves and future production profile.

Due to the significant uncertainty based on the significant assumptions made by management, we are unable to provide an opinion on the deferred consideration receivable on the Orlando field production to state that this balance is free from material misstatement or represents a true and fair view of the amount recoverable by the company.

We conducted our audit in accordance with International Standards on Auditing (ISAs) and additional requirements applicable in the Faroe Islands. Our responsibilities under those standards and requirements are further described in the Auditor's Responsibilities for the audit of the Consolidated financial statements and parent company financial statements section of our report.

We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in the Faroe Islands. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

To the best of our knowledge and belief, prohibited non-audit services referred to in article 5(1) of Regulation (EU) no 537/2014 were not provided.

Apart from the for possible effects of the matter described above in our "Basis for qualified opinion", we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Material uncertainty regarding Going Concern

We draw attention to note 1.1. in the annual accounts, which indicates that material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern.

The company has reached a framework agreement with its main creditors to reduce the Company's debt, which is pending final agreements. The framework suggests that the Company's debt will be reduced by more than 90 mDKK.

However the projected royalty receipts are dependent on future oil prices, currency exchange rates and oil production, which are all inherently uncertain, which also indicates that cash flows from the receivable will most likely differ from the stated deferred receivable as per 31st of December 2024. Therefore, there is still considerable doubt on the company's ability to continue operations.

In forming our opinion, we have considered the adequacy of the disclosures made in Note 1.1 of the financial statements concerning the Company's ability to continue as a going concern. In view of the significance of this matter, we consider it should be drawn to your attention, but our opinion is not modified in relation to the Material uncertainty regarding Going Concern.

Appointment

P/F Januar, løggilt grannskoðanarvirki were first appointed auditors of P/F Atlantic Petroleum May 1st 2013. We have been reappointed by shareholders on AGMs for an annual engagement every year since.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2024. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

During our audit, we identified going concern and valuation of future receivables from sale of Development facilities as Key Audit Matters.

We have been unable to obtain the necessary up to date third party audit evidence to substantiate the estimates made by the management regarding the deferred consideration receivable held at 31 December 2024 which is included in the balance sheet at 16,0 mDKK and relates to the production of the Orlando field. These estimates have been disclosed in note 19 and are based on, and consistent with, information disclosed by the Operator. Atlantic Petroleum is no longer a joint venture partner of the Orlando field and, therefore, management are no longer party to the Operator's recent reports and production models relating to the 2P recoverable reserves and the future production profile.

As we are unable to substantiate the assumptions on which the valuation is based, we are unable to provide an opinion on the deferred consideration receivable on the Orlando field, included in the line item Other Receivables and trade and other receivables, and the possible effects hereof.

Our audit has led us to inform of Material uncertainty regarding Going Concern and have found it appropriate to provide information regarding the material uncertainty for the parent company's and the Groups ability to continue as a going concern.

Hence do not provide information regarding Key Audit Matters and refer to the paragraphs "Basis for qualified opinion" and "Material uncertainty regarding Going Concern" above.

Statement on Management's Review

Management is responsible for Management's Review.

Our opinion on the Financial Statements does not cover Management's Review, and we do not express any kind of assurance opinion thereon.

In connection with our audit of the Financial Statements, our responsibility is to read Management's Review and, in doing so, consider whether Management's Review is materially inconsistent with the Financial Statements or our knowledge obtained during our audit, or otherwise appears to be materially misstated.

Further it is our responsibility to consider whether the Management's review provides the information required under the international Financial Reporting standards as adopted by the EU.

Based on the work we have performed, in our view, Management's Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements, except for the possible effects of our qualification in the paragraph "Basis for qualified opinion" above and has been prepared in accordance with the requirements of the International Financial Reporting Standards as adopted by the EU.

Management's responsibilities for the Financial Statements

Management is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the EU and further requirements in the Danish Financial Business Act and for the preparation of Parent Company and Group Financial Statements that give a true and fair view in accordance with the International Financial Reporting Standards, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the Financial Statements, Management is responsible for assessing the Parent Company's and the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in the Faroe Islands will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.

As part of an audit in accordance with ISAs and the additional requirements applicable in the Faroes Islands, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Parent Company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Report on compliance with the ESEF Regulation

As part of our audit of the Financial Statements we performed procedures to express an opinion on whether the annual report of P/F Atlantic Petroleum for the financial year 1 January to 31 December 2024 with the filename 213800K4T6SRZ1RQDO38-2024-12-31-en.zip is prepared, in all material respects, in compliance with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the preparation of the annual report in XHTML formal and iXBRL tagging of the Consolidated Financial Statements.

Management is responsible for preparing an annual report that complies with the ESES Regulation. This responsibility includes:

The preparing of the annual report in XHTML format;
The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all financial information required to be tagged using judgement where necessary;
Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in human readable format; and
For such internal control as Management determines necessary to enable the preparation of an annual report that is compliant with the ESEF Regulation.

Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor's judgement, including the assessment of the risks of material departures from the requirements set out in the ESEG Regulation, whether due to fraud or error. The procedures include:

Testing whether the annual report is prepared in XHTML format;
Obtaining an understanding of the company's iXBRL tagging process and of internal control over the tagging process;
Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements;
Evaluating the appropriateness of the company's use of iXBRL elements selected from the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy; and
Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements.

In our opinion, the annual report of P/F Atlantic Petroleum for the financial year 1 January to 31 December 2024 with the file name 213800K4T6SRZ1RQDO38-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.

Tórshavn, 30. April 2025

Januar P/F løggilt grannskoðanarvirki State authorized Public Accountants Company reg.no. 5821

Óli Joensen State Authorised Public Accountant

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED INCOME STATEMENT

For the year ended 31st December 2024

		Full Year	Full Year
DKK 1,000	Note	2024	2023

Revenue	3	0	0
Costs of sales	4	0	0
Gross profit/loss		0	0
Exploration expenses		0	0
Orlando/Pegasus deferred consideration	19	3,371	-14,413
Pre-licence exploration cost		0	0
General and administration cost	6,7,8	-2,426	-2,347
Depreciation PPE and intangible assets	10	0	0
Other operating cost/income	9	0	0
Operating loss	3	945	-16,760
Interest income and finance gains	5	0	0
Interest expenses and other finance costs		-3,376	-3,971
Loss before taxation		-2,430	-20,731
Taxation	11	3,827	0
Profit/Loss after taxation		1,396	-20,731

Earnings per share (DKK):
Basic		0.38	-5.61
Diluted		0.38	-5.61

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31st December 2024

	Full Year	Full Year
DKK 1,000	2024	2023

Items that may be recycled in P/L:
Profit/loss for the period	1,396	-20,731
Exchange rate differences	1,685	3,181

Total comprehensive Income/loss in the period	3,082	-17,550

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		at 31st Dec	at 31st Dec
DKK 1,000	Note	2024	2023
Non-current assets
Intangible assets	14	0	0
Intangible exploration and evaluation assets	15	0	0
Tangible development and production assets	16	0	0
Property plant and equipment	17	0	0
Other receivables	19	7,620	11,916
Deferred tax asset	25	0	0
		7,620	11,916
Current assets
Trade and other receivables	19	8,240	12,950
Cash and cash equivalents	24	31	1,136
		8,271	14,086
Total assets		15,891	26,002

Current liabilities
Short term bank debt	21,24	59,434	59,438
Trade and other payables	20	45,604	55,080
Current tax payable		0	3,724
		105,038	118,242
Non-current liabilities
Convertible loan facility		11,936	11,936
Long term provisions	23	11,722	11,711
Deferred tax liability		0	0
		23,658	23,647
Total liabilities		128,696	141,889
Net assets		-112,805	-115,886

Equity
Share capital	26	3,698	3,698
Translation reserves		94,883	93,197
Retained earnings		-211,385	-212,782
Total equity shareholders´ funds		-112,805	-115,886

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the year ended 31st December 2024

	Share	Translation	Retained
DKK 1,000	capital	reserves	earnings	Total
At 1st January 2023	3,698	90,016	-192,050	-98,336
Translation reserves	0	3,181	0	3,181
Result for the period	0	0	-20,731	-20,731
At 31st Dec. 2023	3,698	93,197	-212,782	-115,886
LTIP awarded in the period, net	0	0	0	0
Translation reserves	0	1,685	0	1,685
Result for the period	0	0	1,396	1,396
At 31st Dec. 2024	3,698	94,883	-211,385	-112,805

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31st December 2024.

	Full Year	Full Year
DKK 1,000	2024	2023
Operating activities
Operating profit/loss	945	-16,760
Depreciation, depletion and amortisation	0	0
Change in trade and other receivables	9,006	28,247
Change in trade and other payables	-9,476	-9,734
Interest revenue and finance gain received	0	0
Interest expenses and other finance cost	-31	-15
Net cash flow provided by operating activities	445	1,737
Investing activities
Capital expenditure	-3,345	-3,956
Net cash used in investing activities	-3,345	-3,956
Financing activities
Change in short term debt	-3	0
Change in long term debt	11	26
Net cash flow provided from financing activities	8	26

Change in cash and cash equivalents	-2,892	-2,193
Cash and cash equivalents at the beginning of the period	1,136	65
Currency translation differences	1,788	3,264

Cash and cash equivalents at the end of the period	31	1,136

NOTES TO THE CONSOLIDATED ACCOUNTS

Note 1.1 Going Concern

A resolution on the Group´s debt is the first step to address the deficiency in shareholders' funds. Shareholder´s funds amounted to DKK -112.8MM at the end of 2024 (2023: DKK -115.9MM).

The board and main creditors have come to a framework agreement, whereby the total debt will be reduced by more than DKK 90 million.

The deferred consideration receivable on the Orlando field is valued at DKK 16.0MM at 31 December 2024.

Note 1.2 Corporate information

The consolidated financial statements of the Group, which comprise P/F Atlantic Petroleum, as the parent, and all its subsidiaries, for the year ended 31st December 2024 was authorised for issue in accordance with a resolution of the Directors on 31st March 2025.

P/F Atlantic Petroleum is a public limited company incorporated and domiciled in the Faroe Islands and listed on the exchange NASDAQ OMX Copenhagen. The principal activities of the Company and its subsidiaries (the Group) are Oil & Gas exploration, appraisal, development and production in the Faroe Islands, United Kingdom, and Ireland. Financial statements for the Group's ultimate parent are presented on the Group's website: www.petroleum.fo.

2.1 Basis of preparation

Accounting Convention

The Consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as endorsed by the Council of the European Union (EU) and the additional Danish disclosure requirements according to the Faroese Company Accounts Act, the financial reporting requirements of NASDAQ OMX Copenhagen for listed companies.

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements.

The financial information has been prepared on a historical cost basis and fair value conventions on the basis of the accounting policies set out below. The consolidated financial statements are presented in DKK and all values rounded to the nearest thousand, except where otherwise indicated.

Basis of Consolidation

The consolidated financial statements incorporate the financial statements of P/F Atlantic Petroleum and entities controlled by P/F Atlantic Petroleum (its subsidiaries) made up at the end of each accounting period.

Control is achieved where P/F Atlantic Petroleum has the power to control the financial and operating policies of an investee entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.

Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements.

The interests in the subsidiaries are eliminated with the Parent Company's proportionate ratio of the fair value of the subsidiaries assets, liabilities and provisions measured at the date of acquisition or establishment of the subsidiary.

2.2 Significant accounting judgements, estimates and assumptions

Estimation uncertainty

Determining the carrying amount of some assets and liabilities requires estimation of the effects of future events on those assets and liabilities at the balance sheet date.

In the opinion of Atlantic Petroleum's management, the following estimates and associated judgements are material for the financial reporting:

• determination of underground oil and gas reserves. The assessment of reserves is a complex process involving various parameters such as analysis of geological data, commercial aspects, etc., each of which is subject to uncertainty. The assessment is material to the determination of the recoverable amount and depreciation profile for oil and gas assets,

• determination of the recoverable amount and depreciation profile for production assets. Determination of the recoverable amount is based on assumptions concerning future earnings, oil prices, interest rate levels, etc., each of which is subject to uncertainty. The depreciation profile has been determined on the basis of the expected use of the production assets, and is consequently subject to the same risks relating to reserves, future earnings, etc., as apply to the determination of the value of the production assets,

• determination of the deferred consideration receivable. The assessment is based on a production profile based on 2P Reserves (mid-point on Operators 2018 revenue estimate and 2014 Competent Persons Report); and Discount factor of 10% based on current cost of capital to the Atlantic Petroleum Group.

• determination of abandonment obligations. Provisions for abandonment obligations are subject to particular uncertainty as far as concerns the determination of the costs associated with removal of the production assets, and the timing of the removal,

• and assessment of contingent liabilities and assets.

The estimates applied are based on assumptions which are sound, in management's opinion, but which, by their nature, are uncertain and unpredictable. The assumptions may be incomplete or inaccurate and unforeseen events or circumstances may occur. Moreover, the Atlantic Petroleum Group is subject to risks and uncertainties that may cause actual results to differ from these estimates. Special risks for the Atlantic Petroleum Group are described in the section Director's Report under Risk Management.

Assumptions for forward-looking statements and other estimation uncertainties at the balance sheet date that involve a considerable risk of changes that may lead to a material adjustment in the carrying amount of assets or liabilities within the coming financial year are disclosed in the notes.

The Group's intangible exploration and evaluation assets, amounts to DKK 0MM (2023: DKK 0MM) and the Group's development and production assets amounts to DKK 0MM at 31st December 2024 (2023: DKK 0MM). The Group's abandonment obligations as of 31st December 2024 amounts to DKK 11.7MM (2023: DKK 11.7MM).

2.3 Summary of significant accounting policies

Interest in Joint Ventures

A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control.

Acquisitions of oil and gas properties are accounted for under the purchase method where the transaction meets the definition of a business combination. Transactions involving the purchases of an individual field interest, or a group of field interests, that do not qualify as a business combination are treated as asset purchases, irrespective of whether the specific transactions involved the transfer of the field interests directly or the transfer of an incorporated entity. Accordingly no goodwill and no deferred tax gross up arises, and the consideration is allocated to the assets and liabilities purchased on an appropriate basis.

Proceeds on disposal are applied to the carrying amount of the specific exploration and evaluation asset or development and production asset disposed of and any surplus is recorded as a gain on disposal in the income statement.

Investments in joint ventures are recognised by proportionate consolidation at the share of the jointly controlled assets and liabilities, classified by nature, and the share of revenue from the sale of the joint product, along with the share of the expenses incurred by the jointly controlled operation. Liabilities and expenses incurred in respect of the jointly controlled operation are also recognised.

Translation of Foreign Currencies

For each individual entity, which is recognised in the consolidated accounts, a functional currency is determined in which the entity measures its results and financial position. The functional currency is the currency of the primary economic environment in which the entity operates. Transactions in other currencies than the functional currency are transactions in a foreign currency.

A foreign currency transaction is, on initial recognition, recorded in the functional currency, at the spot exchange rate between the functional currency and the foreign currency on the date of the transaction.

At each balance sheet date receivables, payables and other monetary items in foreign currency are translated to the functional currency using the closing rate.

Exchange differences arising on the settlement of monetary items or on translating monetary items, at rates different from those at which they were translated on initial recognition during the period or in previous financial statements, shall be recognised in the income statement under financial revenues and expenses.

On consolidation the results and financial position of the Group's individual entities with different functional currencies than the Group's presentation currency (DKK) are translated into the Group's presentation currency using the following procedure:

Assets and liabilities are translated at the closing rate at the date of the balance sheet.
Income and expenses are translated at exchange rates at the dates of the transactions.

All resulting exchange differences are recognised directly in equity as a separate component of equity.

For practical reasons an average rate for the period that approximates the exchange rates at the dates of the transactions is used.

Income Statement

Revenue

Revenue is recognised to the extent it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, sales taxes, excise duties and similar levies. The Group assesses its revenue arrangements against specific criteria in order to determine if it is acting as principal or agent. The Group has concluded that it is acting as a principal in all of its revenue arrangements.

Sale of hydrocarbons is recognised when transfer of risk to the buyer has taken place. Sale of hydrocarbons is measured at fair value and represents amounts receivable for goods and services provided in the normal course of business, net of discounts, VAT and other sales related taxes.

Cost of Sales

Cost of sales comprises cost directly related to the operation of oilfields, cost of goods sold, depreciations, lease payments and other costs related to the operation of producing oil fields. Rentals payable for assets under operating leases are charged to the income statement on a straight-line basis over the lease term. Impairment of development and production assets is also recognised here.

Pre-licence Exploration Cost

Pre-licence exploration expenses comprise cost incurred prior to having obtained the legal rights to explore an area and other general exploration costs which are not specifically directed to a licence and economic use is of less than a year.

Exploration Expenses

Exploration expenses comprise the cost of the impairment of exploration and evaluation assets and relinquishment cost.

General and Administration Cost

Administrative expenses comprise employment costs to the management and administration, staff, depreciations and other costs related to the general administration of the Group.

Financial Income and Expenses

Financial income and expenses comprise interests, currency differences, dividend income from investments and amortisation of financial assets and liabilities.

Taxation

Income tax

Income tax expense represents the sum of the tax currently payable and deferred tax. The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Group's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill (or negative goodwill) or from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset realised.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off corporation tax assets against corporation tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis.

Tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.

Statement of Financial Position

Intangible Assets

Items of intangible assets are stated at cost less accumulated depreciation and impairment losses.

Depreciation is charged to the income statement under General and Administration costs item on a straightline basis over the estimated useful lives. The estimated useful lives are as follows:

Office equipment 3 – 10 years

Scrap value 0%

The residual value is reassessed annually.

Exploration and Evaluation Assets

The Group applies the successful efforts method of accounting for Exploration and Evaluation (E&E) costs, having regard to the requirements of IFRS 6 Exploration for and Evaluation of Mineral Resources.

Under the successful efforts method of accounting all licence acquisition, exploration and appraisal costs are initially capitalised at cost in well, field or specific exploration cost centres as appropriate, pending determination. Expenditure, incurred during the various exploration and appraisal phases, is then written off unless commercial reserves have been established or the determination process has not been completed.

The amounts capitalised include payments to acquire the legal right to explore, licence fees, cost of technical services and studies, seismic acquisition, exploratory drilling and testing and other directly attributable cost.

Finance costs that are directly attributable to E&E assets are capitalised in accordance with IAS 23. In the Parent Company these costs are expensed to the Income Statement.

Cost incurred prior to having obtained the legal rights to explore an area (pre-licence cost) are expensed directly to the income statement under Pre-licence exploration cost as they have incurred.

E&E assets are not amortised prior to the conclusion of appraisal activities.

Intangible E&E assets related to each exploration licence/prospect are carried forward, until the existence (or otherwise) of commercial reserves has been determined subject to certain limitations including review for indications of impairment. Every year or if there otherwise are indications of impairment the assets will be tested for impairment. Where, in the opinion of the Directors, there is impairment, E&E assets are written down accordingly, through the Income Statement under Exploration Expenses.

If commercial reserves have been discovered and a field development plan has been approved by the authorities, the carrying value of the relevant E&E asset is reclassified as a tangible asset, development and production asset. Before the reclassification the asset will be tested for indications of impairment. If however, commercial reserves have not been found, the capitalised cost are charged to the profit and loss account under Exploration Expenses after conclusion of appraisal activities.

Tangible Assets

Development and Production Assets

Development and production assets are accumulated generally on a field by field basis and represent the cost of developing the commercial reserves discovered and bringing them into production, together with the E&E expenditures incurred in finding commercial reserves transferred from intangible E&E assets as outlined in the accounting policy for E&E assets above.

The cost of development and production assets also includes the cost of acquisitions and purchases of such assets, directly attributable overheads, finance costs capitalised, and the cost of recognising provisions for future restoration and decommissioning. In the Parent Company finance costs are expensed to the profit and loss account.

The net book values of producing assets are depreciated generally on a field-by-field basis using the unit-ofproduction (UOP) method by reference to the ratio of production in the period and the related commercial reserves of the field.

An impairment test is performed once a year or whenever events and circumstances arising during the development or production phase indicate that the carrying value of a development or production asset may exceed its recoverable amount.

The carrying value is compared against the expected recoverable amount of the asset, generally by reference to the present value of the future net cash flows, derived from expected production of commercial reserves.

An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment losses are recognised in the income statement under the relevant item. The cash-generating unit applied for impairment test purposes is generally the field, except that a number of field interests may be grouped as a single cash-generating unit where the cash flows of each field are interdependent. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

The depreciation and impairment are charged to the Income Statement under Cost of sales.

Decommissioning

Provision for decommissioning is recognised in full when the liability occurs. The amount recognised is the present value of the estimated future expenditure. A corresponding tangible fixed asset is also created at an amount equal to the provision. This is subsequently depreciated as part of the capital costs of the production facilities. Any change in the present value of the estimated expenditure is reflected as an adjustment to the provision and the fixed asset.

Property, Plant and Equipment

Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.

Depreciation is charged to the income statement under General and Administration costs item on a straightline basis over the estimated useful lives. The estimated useful lives are as follows:

Operating assets and office equipment 3 – 10 years.

Scrap value 0%

The residual value is reassessed annually.

Financial Instruments

Financial assets and financial liabilities are recognised in the Group's balance sheet when the Group becomes a party to the contractual provisions of the instrument.

Trade and Other Receivables

Trade and other receivables are recognised at amortised costs and are reduced by appropriate allowances for estimated irrecoverable amounts.

Bank Deposits (Cash and Cash-Equivalents)

Cash and cash equivalent includes cash in hand and deposits held at call with banks with maturity dates of less than three months.

Equity, Translation Reserve

The translation reserve comprises foreign exchange rate adjustments arising on translation of the financial statements of foreign entities with a functional currency that is different from the presentation currency (DKK) of Atlantic Petroleum Group.

Bank Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in the income statement over the period of the borrowings. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance sheet date.

Other Payables

Other payables are stated at their nominal value.

Provisions

Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable that the Group will be required to settle that obligation. Provisions are measured at the management's best estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to present value where the effect is material. Included in the item Provisions is provision for decommissioning costs.

Segment Reporting

In the opinion of the directors the operations of the Group comprise one class of business, the production and sale of hydrocarbons. Its primary segment reporting will be by geographical region.

Cash Flow Statement

The cash flow statement is prepared according to the indirect method and presents cash flow from operations, investments and financing activities.

Cash Flow from Operating Activities

Cash flows from operating activities are presented using the indirect method, whereby the net profit or loss for the period is adjusted for the effects of non-cash transactions, accruals, tax-payments and items of income or expense associated with investing or financing cash flows.

Cash Flow from Investment Activities

Cash flows from investment activities comprises cash flows in conjunction with buying and selling entities and activities, buying and selling intangible, tangible and other non-current assets and buying and selling securities which are not recognised as cash and cash equivalents.

Cash Flow from Financing Activities

Cash flows from financing activities comprise the raising of new share capital and loans, amortisation on loans and payment of dividends.

3 Geographical segmental analysis
-----------------------------------	--	--

	Full Year	Full Year
DKK 1,000	2024	2023
Revenues by origin:
United Kingdom	0	0
	0	0
Operating loss/profit by origin:
Faroe Islands	-1,510	-1,643
United Kingdom	2,538	-14,810
Norway	0	0
Other	-82	-306
	945	-16,760

4 Cost of sales

	Full Year	Full Year
DKK 1,000	2024	2023
Operating costs	0	0
Produced oil in inventory at market value	0	0
Amortisation and depreciation, PPE:
Oil and gas properties	0	0
Impairment	0	0
	0	0

5 Interest income & expense and finance gain & cost

	Full Year	Full Year
DKK 1,000	2024	2023
Interest income and finance gain:
Short term deposits	0	0
Time Value	0	0
Unwinding of discount on decommissioning provision	0	0
Exchange differences	0	0
	0	0

Interest expense and other finance cost:
Bank loan and overdrafts	5	9
Creditors	24	0
Time Value	0	0
Unwinding of discount on decommissioning provision	0	0
Others	1	6
Exchange differences	3,345	3,956
	3,376	3,971

6 Auditors' remuneration

	Full Year	Full Year
DKK 1,000	2024	2023
Audit services:
Statutory and Group audit, parent company auditor	137	134
Review of interim Financial Statements	0	0
Audit subsidiaries	229	197
	366	331

Tax services:
Consulting and advisory services	0	0
	0	0

7 Employee cost

	Full Year	Full Year
DKK 1,000	2024	2023
Staff costs, including executive directors:
Wages and salaries
Board of directors	175	210
Managing Director – CEO***	225	175
Administration, technical staff and other emplyees
	400	385

Share based payment – LTIP accounting charge****:
Managing Director – CEO	0	0
Administration, technical staff and other employees	0	0
	0	0

Pension costs: Managing Director – CEO	23	16
Board of directors	18	22
Administration, technical staff and other employees	0	0
	40	38

Social security costs	19	21
Other staff costs	0	0
	19	21

Total employee costs	459	444

	2024	2023
Average number of employees during the year:
Technical and operations	0	0
Management and administration	1	1
	1	1

There remains one full time employee of Atlantic Petroleum.

\* The Board of Directors' remuneration by person and the CEO's remuneration is disclosed in the Director's Report - Directors' Interests and Remuneration.

** Staff numbers include Managers.

*** The notice of termination for the CEO is one month.

**** See also note Share based payments below.

8 Share based payments

	Full Year	Full Year
	2024	2023
Number of options
st January 1	0	0
Lapsed during the period	0	0
Expired during the period	0	0
At 31st December	0	0

Weighted average exercise price DKK
st January 1	0	0
Lapsed during the period	0	0
Expired during the period	0	0
At 31st December	0	0

9 Other operating cost/income

	Full Year	Full Year
DKK 1,000	2024	2023

Other operating income related to sales of licenses	0	0
Other operating income relaed to sales of activity	0	0
	0	0

10 Depreciation

	Full Year	Full Year
DKK 1,000	2024	2023
Depreciations included in general and administration costs	0	0
	0	0

11 Tax

	Full Year	Full Year
DKK 1,000	2024	2023
Current tax :
Tax repayable/(payable) in UK	-3.827	0
Tax repayable/(payable) in NO	0	0
Tax repayable/(payable)	0	0
Total current tax	-3.827	0


Deferred tax:
Deferred tax cost in UK	0	0
Deferred tax	0	0
Total deferred tax	0	0
Tax credit/tax on loss/profit on ordinary activities	-3.827	0

12 Dividend

No dividend is proposed. (2023: DKK Nil)

13 Earnings per share

The calculation of basic earnings per share is based on the profit after tax and on the weighted average number of Ordinary Shares in issue during the year.

Basic and diluted earnings per share are calculated as follows:

	Full Year	Full Year
DKK 1,000	2024	2023
Basic
Profit/loss after tax	1.396	-20.731
Weighted average number of shares	3.697.863	3.697.863
Earnings per share	0,38	-5,61
Diluted
Profit/loss after tax	1.396	-20.731
Weighted average number of shares	3.697.863	3.697.863
Earnings per share	0,38	-5,61

14 Intangible assets

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
Costs
At 1st January	12.260	12.260
Exchange movements	0	0
Additions/Adjustments	0	0
At end of period	12.260	12.260
Amortisation and depreciation
At 1st January	12.260	12.260
Exchange movements	0	0
Charge this period	0	0
At end of period	12.260	12.260
Net book value at end of period	0	0

15 Oil and gas – Intangible exploration and evaluation assets

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
Costs
At 1st January	0	0
Exchange movements	0	0
Disposal/Additions	0	0
At end of period	0	0
Amortisation and depreciation
At 1st January	0	0
Exchange movements	0	0
Depreciation, charge	0	0
Impairment, charge	0	0
At end of period	0	0
Net book value at end of period	0	0

The amounts for intangible E&E assets represent the active exploration projects. These amounts will be written off to the income statement as exploration expense unless commercial reserves are established or the determination process is not completed and there are no indications of impairment. The outcome of ongoing exploration, and therefore whether the carrying value of E&E assets will ultimately be recovered, is inherently uncertain.

DKK 1,000 2024 2023 Costs At 1st January 0 0 Exchange movements 0 0 Disposal/Additions 0 0 At end of period 0 0 Amortisation and depreciation At 1st January 0 0 Exchange movements 0 0 Depreciation, charge 0 0 Impairment, charge 0 0		at 31st Dec	at 31st Dec











	At end of period	0	0
Net book value at end of period 0 0

16 Oil and gas – Tangible development and production assets

Depreciation and amortisation for oil and gas properties is calculated on a unit-of-production basis, using the ratio of oil and gas production in the period to the estimated quantities of proved and probable reserves at the end of the period plus production in the period, on a field-by-field basis. Proved and probable reserve estimates are based on a number of techniques to generate its estimates and regularly references its estimates against those of joint venture partners or external consultants. However, the amount of reserves that will ultimately be recovered from any field cannot be known with certainty until the end of the field's life.

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
Costs
At 1st January	0	0
Exchange movements	0	0
Additions	0	0
At end of period	0	0
Amortisation and depreciation
At 1st January	0	0
Exchange movements	0	0
Charge this period	0	0
At end of period	0	0
Net book value at end of period	0	0

17 Property, plant and equipment assets

18 Investments and associates

Principal subsidiary undertakings of the Parent Company, all of which are 100 percent owned, are as follow:

Name of Company	Business and area of operation	Country of registration
Atlantic Petroleum UK Limited	Exploration, developmend and production, UK	England and Wales
Atlantic Petroleum (Ireland) Limited*	Exploration, developmend and production, Ireland	Republic of Ireland
Atlantic Petroleum North Sea Limited*	Exploration, developmend and production, UK	England and Wales

*Held through subsidiary undertaking

19 Trade and other receivables

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
Non-Current
Other receivables	7,620	11,916
	7,620	11,916

Current
Trade receivables	-98	-94
Prepayments and accrued income	0	0
Other taxes and VAT receivable	7	250
Other receivables	8,330	12,794
	8,240	12,950
Net receivables	15,860	24,866

All trade and other receivables are due within one year except for the Orlando deferred consideration DKK 16.0MM, of which 8.3MM is expected to be due within one year

The carrying values of the trade and other receivables are equal to their fair value as at the balance sheet date.

Orlando deferred consideration

Under the Sale and Purchase Agreement regarding Orlando, APNS is due to receive deferred considerations equalling 2% of the sale proceeds from the first 5,000,000 barrels of Orlando petroleum and an amount equalling 4.35% of the Orlando petroleum in excess of the first 5,000,000 barrels.

The deferred consideration receivable on the Orlando field is currently valued at DKK 16.0MM.

Reserves are based on the information disclosed by the Operator of the Orlando field in April 2024, which disclose reserves at 1 January 2024.

Based on this, the reserves remaining at 31 December 2024 are estimated to be 1.3 MMBbl.

Production rates are based on a 34% decline profile. Production has been stable throughout 2023 and 2024. Production rates are expected to be 1,800 – 2,200 bopd for the remainder of the 2025.

The valuation is therefore based on a production of 2,000 bopd on average.

Oil price is based on Brent crude futures.

Exchange rates are based on exchange rates at 31st December 2024.

20 Trade and other payables

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023

Trade payables*	45,398	54,610
Accrued expenses	206	205
Other payables	0	265
	45,604	55,080

All trade and other payables are due within one year.

The carrying values of the trade and other payables are equal to their fair value as at the balance sheet date.

21 Cash, short and long term debt

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023

Cash:
Cash at bank and in hand	31	1,136
Total cash	31	1,136
Short term debt:
Short term bank loans	59,434	59,438
Total short term borrowings	59,434	59,438
Long term debt:
Long term bank loans	0	0
Total long term borrowings	0	0

The borrowings are repayable as follows:

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
Bank loans analysed by maturity
Within one year	59,434	59,438
In one to five years	0	0
	59,434	59,438

At year end 2024 the total short- and long-term loans amounted to DKK 59.4MM (2023: DKK 59.4MM).

22 Obligations under leases

There are no remaining production installation leases that Atlantic Petroleum is a party to.

23 Provisions for long-term liabilities and charges

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
Decommissioning costs: At 1st January Exchange movements Reversal E&B Addition of future decommissioning costs during the year	11,711 11 0 0	11,685 26 0 0
At 31st December	11,722	11,711
Total provision	11,722	11,711

The decommissioning provision represents the present value of decommissioning costs relating to the oil and gas interests, which are expected to be incurred between 2023 and 2031. These provisions have been created based on operators' estimates. Based on the current economic environment, assumptions have been made which the management believe are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. However, actual decommissioning costs will ultimately depend upon future market prices for the necessary decommissioning works required, which will reflect market conditions at the relevant time.

Furthermore, the timing of decommissioning is likely to depend on when the fields cease to produce at economically viable rates. This in turn will depend upon future oil and gas prices, which are inherently uncertain.

24 Financial instruments

The Group's activities expose it to financial risks of changes, primarily in oil and gas prices, but also foreign currency exchange and interest rates.

Interest rate risk profile of financial liabilities

The interest rate profile of the financial liabilities of the Group as at 31st December was:

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
Floating rate
DKK	59,434	59,438
NOK	0	0
Total	59,434	59,438

The floating rate comprises bank borrowings bearing interest at rates set by reference to DKK CIBOR exposing the Group to a cash flow interest rate risk.

Interest rate risk profile of financial assets

The interest rate profile of the financial assets of the Group as at 31st December was:

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
Floating rate
Held in DKK	31	22
Held in GBP	0	0
Held in USD	1	1,114
Held in EUR	0	0
Held in NOK	0	0
Total	31	1,136

The floating rate cash and short-term deposits consists of cash held in interest-bearing current accounts by reference to DKK CIBOR.

The fair values of the financial assets and financial liabilities are:

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
Carrying amount
Cash and short-term deposits	31	1,136
Bank loans and credit facility	-59,434	-59,438
Long-term bank loan	0	0
Fair value
Cash and short-term deposits	31	1,136
Bank loans and credit facility	-59,434	-59,438
Long-term bank loan	0	0

Fair value is the amount at which a financial instrument could be exchanged in an arm's length transaction, other than in a forced or liquidated sale. Where available, market values have been used to determine fair values. The estimated fair values have been determined using market information and appropriate valuation methodologies. Values recorded are indicative and will not necessarily be realised. Non-interest bearing financial instruments, accounts receivable from customers, and accounts payable are recorded materially at fair value reflecting their short-term maturity and are not shown in the above table.

Currency risk

No currency exposures were hedged during the year and thus there is a currency risk. Please see risk management section for currency risk exposures.

25 Deferred tax

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
Deferred tax assets	0	0
	0	0
DKK 1,000	2024	2023
Deferred tax liability	0	0
	0	0

The Group has DKK 210.1MM of tax credits and allowances in its UK companies however in the absence of certainty over the availability of future taxable profits the value of these has been discounted to zero.

26 Share capital

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
Balance at 1st January	3,698	3,698
Shares issued
Balance at 31st December	3,698	3,698


Ordinary Shares	at 31st Dec	st Dec at 31
	2024	2023

DKK shares
Authorised	8,626,703	8,626,703
Called up, issued and fully paid	3,697,860	3,697,860

DKK 1,000
Authorised	8,627	8,627

27 Analysis of changes in net debt/cash

	at 31st Dec	at 31st Dec
DKK 1,000	2024	2023
a) Reconciliation of net cash flow to movement in net debt/cash:
Movement in cash and cash equivalents	-1,104	1,071
Proceeds from long-term loans	0	0
Proceeds from short-term loans	3	0
Increase/decrease in net cash in the period	-1,101	1,071
Opening net cash	-70,238	-71,309
Closing net cash/debt	-71,339	-70,238
b) Analysis of net cash/debt:
Cash and cash equivalents	31	1,136
Short-term debt	-59,434	-59,438
Long-term debt	-11,936	-11,936
Total net cash/debt	-71,339	-70,238

28 Capital comittments and guarantees

P/F Atlantic Petroleum has provided a parent guarantee to the UK Department for Energy and Climate Change in connection with Atlantic Petroleum UK Limited assets in the UKCS:

(i) the parent will always provide necessary finance to enable Atlantic Petroleum UK Limited to fulfil its obligations in the UK area
(ii) the parent will not alter Atlantic Petroleum UK Limited legal rights, so that the Company cannot fulfil its obligations
(iii) the parent will undertake Atlantic Petroleum UK Limited financial obligations if the Company fails to do so

P/F Atlantic Petroleum has a senior secured loan agreement with P/F Betri Banki. The Company has offered the following security to lender in connection with the loan agreement:

(i) shares in Atlantic Petroleum UK Limited and Atlantic Petroleum North Sea Limited
(ii) receivables from Atlantic Petroleum UK Limited
(iii) charge over proceeds from insurance coverage

The Company has provided lender with a negative pledge and investment in new ventures shall be endorsed by the lender.

Atlantic Petroleum UK Limited had a loan facility at year end 2024 with the following bank: P/F Betri of DKK 56.8MM. P/F Atlantic Petroleum has provided a parent guarantee for this loan facility.

The Company has provided lender with a negative pledge and investment in new ventures shall be endorsed by the lender.

29 Contingent considerations

30 Related party disclosures

Intra-group related party transactions, which are eliminated on consolidation, are not required to be disclosed in accordance with IAS 24.

Atlantic Petroleum has a key management personnel service agreement with Grannnskoðarastovan Sp/f for at monthly fee of DKK 30.000. Outstanding balance at 31st December 2024 is DKK 1.16MM

PARENT COMPANY INCOME STATEMENT

For the year ended 31st December 2024

DKK 1,000	Note	2024	2023

Revenue		0	0
Costs of sales		0	0
Gross profit/loss		0	0
Exploration expenses		0	0
Pre-licence exploration cost		0	0
General and administration cost	2,3	-1,510	-1,643
Depreciation PPE and intangible assets	6	0	0
Other operating cost/income	5	0	0
Operating loss		-1,510	-1,643
Interest income and finance gains	7	0	9,309
Interest expenses and other finance costs	7	-2,479	-21,511
Loss before taxation		-3,990	-13,845
Taxation		0	0
Profit/Loss after taxation		-3,990	-13,845

Distribution of profit:
Retained earnings		-3,990	-13,845
Distribution in total		-3,990	-13,845

PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31st December 2024

DKK 1,000	2024	2023

Items that may be recycled in P/L:
Profit/loss for the period	-3,990	-13,845
Total comprehensive
Income/loss in the period	-3,990	-13,845

PARENT COMPANY FINANCIAL POSITION

31st December 2024

		At 31st Dec	At 31st Dec
DKK 1,000	Note	2024	2023
Non-current assets
Intangible assets	10	0	0
Property plant and equipment	11	0	0
Investment in subsidiary	9	0	0
		0	0
Current assets
Trade and other receivables	12	7	62
Reveivables from subsiduary	12	0	6,784
Cash and cash equivalents	24	23	1,136
		30	7,981
Total assets		30	7,981

Current liabilities
Exploration finance facility		0	0
Short term bank debt	21	2,617	2,617
Trade and other payables	13	41,392	11,098
Current tax payable		0	0
		44,008	13,715
Non-current liabilities
Long term debt – intercompany		109,395	105,600
Long term bank debt		0	0
Convertible loan facility		11,936	49,985
		121,331	155,586
Total liabilities		165,339	169,300
Net assets		-165,309	-161,319

Equity
Share capital		3,698	3,698
Retained earnings		-169,007	-165,017
Total equity shareholders´ funds		-165,309	-161,319

PARENT COMPANY STATEMENT OF CHANGES IN EQUITY

For the year ended 31st December 2024

	Share	Retained
DKK 1,000	capital	earnings	Total
At 1st January 2023	3,698	-151,172	-147,474
Result for the period	0	-13,845	-13,845
At 31st December 2023	3,698	-165,017	-161,319
Result for the period	0	-3,990	-3,990
At 31st December 2024	3,698	-169,007	-165,309

PARENT COMPANY CASH FLOW STATEMENT

For the year ended 31st December 2024

DKK 1,000	2024	2023
Operating activities
Operating loss	-1,510	-1,643
Depreciation, depletion and amortisation	0	0
Change in trade and other receivables	54	-43
Change in trade and other payables	30,294	-41,256
Interest revenue and finance gain received	0	9,309
Interest expenses and other finance cost	-2,479	-1,410
Income taxes	0	0
Net cash flow provided by operating activities	26,359	-35,044
Investing activities
Capital expenditure	0	0
Net cash used in investing activities	0	0
Financing activities
Change in intercompany accounts	10,578	-1,935
Change in short term debt	0	0
Change in long term debt	-38,050	38,050
Net cash flow provided from financing activities	-27,471	36,115

Change in cash and cash equivalents	-1,113	1,071
Cash and cash equivalents at the beginning of the	1,136	65
period

Cash and cash equivalents at the end of the period	23	1,136

PARENT COMPANY NOTES TO THE ACCOUNTS

1 Corporate information

The financial statements for the Company P/F Atlantic Petroleum for the year ended 31st December 2024, according to the requirement in the Faroese Company Accounts Act, were authorised for issue in accordance with a resolution of the directors on 30th April 2025.

2 Auditors' remuneration

DKK 1,000	2024	2023
Audit services:
Statutory and Group audit, parent company auditor	137	134
Review of interim Financial Statements	0	0
	137	134

3 Employee cost

DKK 1,000	2024	2023
Staff costs, including executive directors:
Wages and salaries
Board of directors	175	210
Managing Director – CEO***	225	175
Administration, technical staff and other emplyees
	400	385

Share based payment – LTIP accounting charge****:
Managing Director – CEO	0	0
Administration, technical staff and other employees	0	0
	0	0

Pension costs:
Managing Director – CEO	23	16
Board of Directors	18	22
Administration, technical staff and other employees	0	0
	40	38

Social security costs	19	21
Other staff costs	0	0
	19	21

Total employee costs	459	444

	2024	2023
Average number of employees during the year:
Technical and operations	0	0
Management and administration	1	1
	1	1

* The Board of Directors' remuneration by person and the CEO's remuneration is disclosed in the Director's Report - Directors' Interests and Remuneration and in Management's Interests and Remuneration.

** Staff numbers include Managers.

*** See also note Share based payments below.

The notice of termination for the CEO is one month.

4 Share based payments

	2024	2023
Number of options
st January 1	0	0
Lapsed during the period	0	0
Expired during the period	0	0
At 31st December	0	0

Weighted average exercise price DKK
st January 1	0	0
Lapsed during the period	0	0
Expired during the period	0	0
At 31st December	0	0

5 Other operating income

DKK 1,000	2024	2023
Service rendering to subsidiaries	0	0
	0	0

6 Depreciation

DKK 1,000	2024	2023
Depreciations included in general and administration costs	0	0
	0	0

7 Interest revenue and expenses & finance gain and cost

DKK 1,000	2024	2023
Interest income and finance gain:
Short term deposits	0	0
Intercompany Provisions reversed	0	8,418
Exchange differences	0	891
	0	9,309

Interest expense and other finance cost:
Bank loan and overdrafts	8	8
Intercompany Provisions	89
Impairment subsiduary	0	20,101
Others	1	6
Creditors	25	0
Exchange differences	2,356	1,396
	2,479	21,511

8 Dividend

No interim dividend is proposed. (2023: DKK Nil)

9 Investment in subsidiaries
------------------------------	--	--	--	--	--	--

DKK 1,000	2024	2023
Costs
At 1st January	0	20,101
Impairment	0	-20,101
At end of period	0	0

Priscipal subsidiary undertakings of the Parent Company, all of which are 100 percent owned, are as follow:

Name of Company	Business and area of operation	Country of registration
Atlantic Petroleum UK Limited	Exploration, developmend and production, UK	England and Wales
Atlantic Petroleum (Ireland) Limited*	Exploration, developmend and production, Ireland	Republic of Ireland
Atlantic Petroleum North Sea Limited*	Exploration, developmend and production, UK	England and Wales

*Held through subsidiary undertaking

In connection with the debt facility, P/F Atlantic Petroleum has pledged as security to the lenders the shares in the wholly owned subsidiary Atlantic Petroleum UK Limited. See note regarding capital commitments and guarantees.

10 Intangible assets

DKK 1,000	2024	2023
Costs
At 1st January	1,467	1,467
Additions/Adjustments	0	0
At end of period	1,467	1,467
Amortisation and depreciation
At 1st January	1,467	1,467
Charge this period	0	0
At end of period	1,467	1,467
Net book value at end of period	0	0

11 Property, plant and equipment

DKK 1,000	2024	2023
Costs
At 1st January	0	0
Additions	0	0
At end of period	0	0
Amortisation and depreciation
At 1st January	0	0
Charge this period	0	0
At end of period	0	0
Net book value at end of period	0	0

12 Trade and other receivables

DKK 1,000	2024	2023

Trade receivables	0	0
Other taxes and VAT receivable	7	62
Reveivables from subsiduary	0	6,784
Net assets	7	6,845

All trade and other receivables are due within one year.

The carrying values of the trade and other receivables are equal to their fair value as at the balance sheet date.

The amount due from subsidiary undertakings relates to balances, which bears no interest and are payable upon request. In connection with the Company´s debt facility, P/F Atlantic Petroleum has pledged as security the intra-company receivables from Atlantic Petroleum UK Limited. See note regarding capital commitments and guarantees.

13 Trade and other payables

DKK 1,000	2024	2023
Trade payables*	41,196	10,902
Accrued expenses	196	196
Other payables	0	0
	41,392	11,098

All trade and other payables are due within one year.

The carrying values of the trade and other payables are equal to their fair value as at the balance sheet date.

14 Cash, short and long-term debt

DKK 1,000	2024	2023
Cash:
Cash at bank and in hand	23	1,136
Total cash	23	1,136
Short term debt:
Short term bank loans	2,617	2,617
Total short term borrowings	2,617	2,617
Long term debt:
Long term bank loans	0	0
Total long term borrowings	0	0

The borrowings are repayable as follows:

DKK 1,000	2024	2023
Bank loans analysed by maturity
Within one year	2,617	2,617
In one to five years	0	0
	2,617	2,617

15 Financial instruments

The Group's activities expose it to financial risks of changes, primarily in oil and gas prices, but also foreign currency exchange and interest rates.

Interest rate risk profile of financial liabilities

The interest rate profile of the financial liabilities of the Group as at 31st December was:

DKK 1,000	2024	2023
Floating rate
DKK	2,617	2,617
NOK	0	0
	2,617	2,617
Total	2,617	2,617

The floating rate comprises bank borrowings bearing interest at rates set by reference to DKK CIBOR exposing the Group to a cash flow interest rate risk.

A 1 per cent point change per annum in the interest would have a hypothetic effect of DKK 0,03MM (2023: DKK 0,03MM) on the result and equity.

Interest rate risk profile of financial assets

The interest rate profile of the financial assets of the Group as at 31st December was:

DKK 1,000	2024	2023
Floating rate
Held in DKK	22	22
Held in GBP	0	0
Held in USD	1	1,114
Held in EUR	0	0
Held in NOK	0	0
	23	1,136
Total	23	1,136

The floating rate cash and short-term deposits consists of cash held in interest-bearing current accounts by reference to DKK CIBOR.

The fair values of the financial assets and financial liabilities are:

DKK 1,000	2024	2023
Carrying amount
Cash and short-term deposits	23	1,136
Bank loans and credit facility	-2,617	-2,617
Long-term bank loan	0	0
Fair value
Cash and short-term deposits	23	1,136
Bank loans and credit facility	-2,617	-2,617
Long-term bank loan	0	0

Currency risk

No currency exposures were hedged during the year and thus there is a currency risk. Please see risk management section for currency risk exposures.

Contacts

P/F Atlantic Petroleum

P.O.Box 1228 Lucas Debesargøta 8 FO-110 Tórshavn Faroe Islands Telephone +298 59 16 01 E-mail: [email protected] www.petroleum.fo VAT/Tax No. Faroes 475.653 Reg. No. Faroes 2695

Atlantic Petroleum UK Ltd / Atlantic

Petroleum North Sea Ltd

5 Strarford Place London W1C 1AX United Kingdom Telephone +298 59 16 01

Atlantic Petroleum (Ireland) Ltd

Registered address 6th Floor 2 Grand Canal Square Dublin 2 Ireland

Auditors Parent Company

JANUAR, State Authorised Public Accountants P/F P.O.Box 30, Óðinshædd 13 FO-110 Tórshavn Faroe Islands Telephone +298 314 700 Fax +298 351 701 E-mail: [email protected] www.januar.fo

Auditors Subsidiaries

Atlantic Petroleum UK Ltd/

Atlantic Petroleum North Sea Ltd: Atlantic Petroleum (Ireland) Ltd: Anderson Anderson & Brown LLP KPMG Kingshill View Stokes Place Kingswells Causeway St Stephens Green Prime Four Business Park Dublin 2 Aberdeen AB15 8PU Ireland United Kingdom

AI Terminal

Atlantic Petroleum P/F

8209_10-k_2025-04-30_69beb4a1-a257-48e7-9294-28eafeb88942.pdf

P/F ATLANTIC PETROLEUM ANNUAL AND CONSOLIDATED REPORT AND ACCOUNTS

PERFORMANCE SUMMARY

CHAIRMAN'S STATEMENT

Outlook in 2025

CHIEF EXECUTIVE OFFICER'S STATEMENT

2025 OUTLOOK

ATLANTIC PETROLEUM GROUP STRUCTURE

PROJECT PORTFOLIO

SECURING REMAINING VALUE

DEVELOPMENT & PRODUCTION

PRODUCING ASSETS

DEVELOPMENT & NEAR DEVELOPMENT

EXPLORATION & APPRAISAL

DIRECTORS' REPORT

Financial Review

Going Concern

Consolidated Income Statement

Consolidated Statement of Financial Position

Consolidated Assets

Consolidated Liabilities

Consolidated Equity

Cash Flow

Net Cash Position

Significant Events after the Balance Sheet Date

Risk Management

Foreign currency

Credit risk

Operational risk

Insurance

Corporate Social Responsibility

Corporate Social Responsibility (CSR) Policy

Environment, Health and Safety (EHS) Policy

Shareholder Information

Group Board

Financial calendar

Share Price 2024

Atlantic Petroleum Tel.: + 298 591601 E-mail: [email protected]

Auditors

Results and Dividends

Shareholders Capital and Vote

Dematerialisation of paper shares

Distribution of Share capital

Substantial Shareholders

Director Profiles

Board Meetings

Management Profiles

Mark T. Højgaard

Number of shares held in Atlantic Petroleum:

Directors' Interests and Remuneration

There are no Board of Director beneficial interest of holding during the period.

CEO's Interests and Remuneration

There has been no CEO beneficial interest or holding during the period

Stock Exchange Announcements 2024

CORPORATE GOVERNANCE REPORT

Openness and Transparency

Retirement Age

Election Period

REMUNERATION OF THE MEMBERS OF THE SUPERVISORY BOARD AND THE EXECUTIVE BOARD:

Remuneration Policy

Remuneration Policy for Senior Executives of Atlantic Petroleum

Overall Aim

Remuneration Strategy

Balanced

Competitive

Equitable

Risk-weighted

Aligned

Base Salary

Long Term Incentive Plans

Share Based Payments

Additional Benefits

Non-Executive Directors Fees

STATEMENT BY MANAGEMENT ON THE ANNUAL AND CONSOLIDATED REPORT AND ACCOUNTS

INDEPENDENT AUDITOR'S REPORT

To the Shareholders of P/F Atlantic Petroleum

Report on the Audit of Consolidated financial statements and parent company financial statements.

Qualified opinion on the Consolidated financial statements