Atlantic Petroleum P/F — Capital/Financing Update 2020

Jul 16, 2020

Atlantic Petroleum - Orlando Field Production Update

Atlantic Petroleum - Orlando Field Production Update

Atlantic Petroleum - Orlando Field Production Update

Tórshavn, Faroe Islands, 2020-07-16 (GLOBE NEWSWIRE) -- P/F Atlantic Petroleum

(NASDAQ Copenhagen: ATLA DKK & Oslo Stock Exchange: ATLA NOK) announces an

Orlando field production update following the disclosure of production

information from the Licence Operator under the terms of the associated Sale and

Purchase Agreement (SPA) with Decipher Energy.

Orlando Field Production Update

The Licence Operator, Decipher Production, has advised Atlantic Petroleum that

the Orlando field production is currently shut-in due to maintenance and

enhancement work on the Ninian Central Platform.

Prior to the shut in that commenced in April, Orlando production revenue reached

the threshold for payment to Atlantic Petroleum to be received from Decipher

Energy. However, at the time the oil price was lower than the deferred payment

threshold of USD 35 per barrel. Therefore, the shut-in has had little impact on

Atlantic Petroleum in Q2.

Atlantic Petroleum expects to receive its 2% revenue share once production on

Orlando re-commences, as oil prices have recovered to levels above USD 35 per

barrel.

Atlantic Petroleum will provide the market with an update once Orlando revenue

is received.

Orlando Overview

The Company has retained an economic interest in the Orlando Field; sold in

2017 to Decipher Energy. Under the Sale and Purchase Agreement, the Company, via

Atlantic Petroleum North Sea Limited, is due to receive a deferred consideration

of 2%  of the sale proceeds of the first 5MM barrels of Orlando production, of

which USD 1MM was pre-paid in 2017. After the first 5MM barrels have been

produced on Orlando, Atlantic Petroleum North Sea Limited is due to receive

4.35% of the sale proceeds from Orlando production. Production from the Orlando

field began on the 29th March 2019.

Atlantic Petroleum in brief:

Atlantic Petroleum participates in oil and gas joint ventures with reputable,

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

Islands, and the Company currently has subsidiaries and offices in the UK.

Atlantic Petroleum's shares are listed on NASDAQ OMX Copenhagen and on the Oslo

Stock Exchange.

Further Details:

Further details can be obtained from Mark T. Højgaard, (markh@petroleum.fo

(mailto:markh@petroleum.fo)). This announcement will be available, together with

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

www.petroleum.fo. (http://www.petroleum.fo./)

Announcement no.: 7/2020

Issued: 16-07-2020

P/F Atlantic Petroleum

Lucas Debesargøta 8

P.O.Box 1228

FO-110 Torshavn

Faroe Islands

Website: www.petroleum.fo (http://www.petroleum.fo/)