Atlantic Petroleum P/F — Earnings Release 2014

Nov 12, 2014

Production 1,597 boepd and EBITDAX DKK 102.9MM for the first nine months in 2014.

Production 1,597 boepd and EBITDAX DKK 102.9MM for the first nine months in 2014.

Atlantic Petroleum maintains its guidance for EBITDAX DKK 125MM - 175MM. Gross

Profit for the first nine months in 2014 was DKK 77.9MM (First nine months 2013

DKK 169.7MM). Post tax loss for the first nine months in 2014 of DKK 76.5MM

(First nine months 2013 Loss of DKK 24.0MM). The post-tax loss in 3Q of DKK

40.5MM was primarily because of a non-cash write down in connection with the

relinquishment of Norway PL270 Agat licence following withdrawal by the

operator.

Tórshavn, Faroe Islands, 2014-11-12 07:43 CET (GLOBE NEWSWIRE) --

P/F Atlantic Petroleum (NASDAQ OMX: ATLA DKK & Oslo Stock Exchange: ATLA NOK)

today announces its results for the first nine months of 2014. This company

announcement should be read in conjunction with Atlantic Petroleum?s Condensed

Consolidated Interim Report attached to this announcement.

Ben Arabo, Atlantic Petroleum?s CEO, stated:

''The exploration portfolio we have built up over the last four years is

starting to deliver. The Pegasus West well has been tested flowing around 91

million standard cubic feet per day and the well is being suspended for future

production. We will now look at the various development options. We will also

look at the follow up potential, as we have built up a strong acreage position

chasing the carboniferous potential in the UK Southern Gas Basin.

We have similarly built up a portfolio of exploration acreage in Mid Norway

around developing infrastructure in the Aasta Hansteen area where the Ivory

well is currently drilling and we look forward to the result later this year.

An important milestone for Atlantic Petroleum was the recent signing of the

agreements between the Orlando partners and the Ninian infrastructure owners.

This has enabled us to move ahead with the Orlando development with an agreed

target date of first oil in 2016.

Our production in 3Q was lower than expected due to a longer shutdown than

expected on Ettrick and Blackbird and this has combined with operational issues

on Chestnut caused us to lower the production guidance for 2014, as production

is delayed. In spite of this we maintain our EBITDAX target for the year and we

maintain a solid cash position and a strong cash generation in 4Q 2014''

HIGHLIGHTS & OUTLOOK

Production

-- Production for the first 9 months was 436,000 boe corresponding to an

average of 1,597 boepd net which is lower than the previously expected

target. The expectations for the production has been lowered to 1,520 ?

1,600 boepd net for the year.

-- Chestnut

The Hummingbird FPSO contract and hence Chestnut field life has been

extended, enabling production to at least March 2017

-- Ettrick

The field is producing again following a planned extended shutdown over the

summer to help prolong field life

-- Blackbird

A production well was successfully completed and tied into the Aoka Mizu

FPSO facilities. Production commenced in August

2014 Targets

-- Production average per day between 1,520 ? 1,600 boepd net for the year

Development

The Group has currently three UK fields under development or near development

-- Orlando

Commercial agreements have been completed with the operator of the Ninian

Central Platform to allow first oil by end 2016

-- Kells

Work is on-going to re-submit an FDP in 2015, with first oil planned in

2017

-- Perth

Joint studies ongoing to determine the feasibility of a joint

Perth/Dolphin/Lowlander development. These appraise phase joint studies are

expected to be complete by year end 2014

Exploration

Atlantic Petroleum?s exploration portfolio has several high profile prospects

identified.

-- Pegasus

This UK well spudded in July and was announced as finding gas in September.

The well tested at combined rates of more than 90MMscfpd and is being

suspended for use as a future producer.

-- Ivory

The Norwegian Ivory well spudded in early October and is currently

drilling. Operations are anticipated to take 60-90 days

2015/16 Programme

-- The exploration drilling programme is being populated with UK well

Skerryvore in 2H 2015, Greater York 4Q 2015 and Aurora 1Q 2016

2014 Targets

-- Drill 4 exploration/ appraisal wells in 2014 targeting 86MMboe of net

unrisked resources

Financial

The Group is well funded with a significant cash balance, low debt and cash

flow from three producing fields.

-- EBITDAX DKK 102.9MM (Nine months 2013 DKK 184.0MM)

-- Cash and cash equivalents DKK 157.4MM (End 2013 DKK 184.6MM)

-- Revenue DKK 261.6MM (Nine months 2013 DKK 328.3MM)

-- Exploration expense DKK 156.5MM (Nine months 2013 DKK 113.8MM)

-- General and administration costs DKK 38.6MM (Nine months 2013 DKK 44.1MM)

-- Result after taxation DKK -76.5MM (Nine months 2013 DKK -24.0MM)

-- In 4Q Atlantic Petroleum has hedged 69,000 barrels of oil at an average oil

price of USD 104.9 per barrel

2014 Targets

-- EBITDAX in the range DKK 125MM - 175MM

Live webcast:

In connection with the publication of the 3Q 2014 Condensed Consolidated

Interim Report Atlantic Petroleum will host a live webcast.

The live webcast call will take place on Wednesday 12th November 2014 at the

local time stated below:

-- Tórshavn/London 9 AM

-- Oslo/Copenhagen 10 AM

To view the live webcast please enter our website www.petroleum.fo and follow

the link.

Atlantic Petroleum in brief:

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

focused on North West Europe. Atlantic Petroleum currently holds around 46 oil

and gas licences in the UK, Norway, Faroe Islands, Ireland and the Netherlands,

and has three fields in production in the UK part of the North Sea. In addition

to this, the Group has one field under development with first oil expected in

2016, two additional potential development projects and a substantial number of

exploration prospects. Atlantic Petroleum participates in joint ventures with

30 reputable, international partners. Atlantic Petroleum?s main office is

located in Tórshavn, Faroe Islands, and the Company has subsidiaries and

technical 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 350100

(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. 48/2014

Issued 12-11-2014

P/F Atlantic Petroleum

Yviri við Strond 4

P.O. Box 1228

FO-110 Tórshavn

Faroe Islands

Telephone +298 350 100

Fax +298 350 101

Website: www.petroleum.fo

E-mail: petroleum@petroleum.fo