Atlantic Petroleum P/F — Capital/Financing Update 2016

May 24, 2016

Atlantic Petroleum signs an £8 million Secured Convertible Loan Facility

Atlantic Petroleum signs an £8 million Secured Convertible Loan Facility

Tórshavn, Faroe Islands, 2016-05-25 01:53 CEST (GLOBE NEWSWIRE) --

P/F Atlantic Petroleum (?AP?) (NASDAQ Copenhagen: ATLA DKK and Oslo Stock

Exchange: ATLA NOK), is pleased to announce that further to its announcement of

24 March 2016, it has today entered into a loan agreement (the "Loan

Agreement") with London Oil and Gas Limited (?LOG?) for the provision of a

secured convertible loan facility for up to £8 million (the "Facility").

Highlights

-- A £8 million secured fully convertible loan facility to be made available

by LOG, subject to certain conditions precedent, providing AP with

additional working capital and funding for future acquisitions primarily

targeted in Eastern Europe and the Eurasia region.

-- ?Up to £3 million of the New Facility to be used to fund corporate

G&A and fees up to May 2019.

-- Up to £6 million (provided that the total doesn?t exceed £8 million) of

the New Facility to be dedicated to fund acquisitions that would add

value to the existing AP portfolio.

-- Loans drawn down pursuant to the Facility will carry a coupon of 9%,

with accrued interest capitalised monthly and convertible with the

principal loan.

-- The Facility will be secured against certain assets.

-- Loans drawn down and accrued interest will be fully convertible at any

time following the drawdown of each tranche at LOG?s election into

ordinary shares of DKK 1 each in the capital of the Company (?Ordinary

Shares?) at a conversion price of DKK 15 per Ordinary Share (the

"Conversion Price").

-- To the extent that the Facility has not been drawn in full at the end of

the availability period, being 24 May 2019, LOG may require AP to draw

down the balance of the Facility provided that LOG undertakes to

immediately convert such amount into Ordinary Shares at the Conversion

Price, bringing the Loan Agreement to an end

-- ?As part of the agreement LOG have the right to nominate a Board member and

will propose a non-executive Director, to be announced in the near future,

and AP will shortly thereafter call a general meeting to that effect.

-- In addition to the strengthening of the board, an advisor to LOG, to be

announced in the near future, will join as a special adviser to the AP

board.

-- Clint Redman also joins AP in a part time role as Head of Corporate

Finance. He is currently Head of Corporate Finance with LOG and with UK

based Independent Oil and Gas. Clint has worked in the investment banking

industry for 35 years covering a wide range of markets from equities

through to financial futures. Clint has worked across the globe from Tokyo

to New York for some of the world?s largest investment banks which include

Goldman Sachs, Oppenheimer, Drexel Burnham and Lehman Brothers and brings a

wealth of knowledge and contacts.

Ben Arabo, CEO of Atlantic Petroleum, said:

?We are delighted to announce the loan agreement with London Oil and Gas. The

agreement secures funding for P/F Atlantic Petroleum and enables the company to

start building a new asset portfolio. In the past year we have been focussed on

our liquidity and securing as much value as possible from our North Sea

portfolio and been limiting our exposure to new and existing liabilities, and

that work is still ongoing. For future opportunities Atlantic Petroleum will be

looking beyond the North Sea. The new focus area will be Eastern Europe and the

Eurasian region. In that context we are very pleased to be able to strengthen

the Board of Directors with relevant experience. A number of the London Oil and

Gas Directors have significant experience in the Eurasian Union. I am also very

pleased with the addition of key Corporate Finance resources to the management

team to help finance future projects. The current market situation is an

opportune moment for Atlantic Petroleum to capture opportunities in the new

focus area and the plan is to move quickly and secure assets and opportunities

over the coming months.?

Simon Hume-Kendall, Chairman of London Oil and Gas said:

?We have developed an excellent relationship with Atlantic Petroleum over the

last six months and we are very pleased to support them in their future plans

to develop some of the major opportunities in the Eurasian Union in this moment

of the oil and gas cycle.?

Atlantic Petroleum in brief:

Atlantic Petroleum is a full cycle exploration and production (E&P)

Group. Atlantic Petroleum participates in joint ventures with reputable,

international partners. Atlantic Petroleum P/F is based in Tórshavn, Faroe

Islands, and the Company has subsidiaries and offices in London, UK and Bergen,

Norway. Atlantic Petroleum?s existing shares are listed on NASDAQ OMX

Copenhagen and on Oslo Stock Exchange.

Further Details:

Further details can be obtained from Ben Arabo, CEO, tel +298 550100

(ben.arabo@petroleum.fo). This announcement will be available, together with

other information about Atlantic Petroleum, on the Company's website:

www.petroleum.fo.

On the website, it is also possible to sign up for the Company?s e-mail

newsletter.

Announcement no.12/2016

Issued 25-05-2016