Atlantic Petroleum P/F — Earnings Release 2014

Aug 29, 2014

Production 1,762 boepd and EBITDAX DKK 81.2MM in 1H 2014. Atlantic Petroleum maintains its 2014 guidance for production and EBITDAX

Production 1,762 boepd and EBITDAX DKK 81.2MM in 1H 2014. Atlantic Petroleum maintains its 2014 guidance for production and EBITDAX

Gross Profit in 1H 2014 was DKK 62.4MM (1H 2013 DKK 90.8MM). Post tax loss in

1H 2014 of DKK 99.9MM (1H 2013 Loss of DKK 15.0MM).

Tórshavn, Faroe Islands, 2014-08-29 08:01 CEST (GLOBE NEWSWIRE) --

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

today announces its results for the first six 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:

?Our production was in line with our expectations in the first half of 2014,

and our development project Orlando is progressing with a target first

production date in 2016.

The commercial progress between Perth and Lowlander equity holders is a big

step forward towards developing Perth. We look forward to working with Parkmead

and Faroe Petroleum to mature the project towards a development and create

value. Perth holds 5.1MMboe of contingent resources net to Atlantic Petroleum.

On the exploration front we are one of the most active companies in our peer

group. We are currently drilling the Pegasus well in the UK, which will be

tested and suspended for later use if successful. We will also spud the

potentially high impact Ivory well in Norway in September. Both wells hold a

large upside with a limited downside.

Our drilling programme for 2015 and beyond is firming up. In the UK we plan to

drill the Parkmead operated Skerryvore well and the potential multiple TCF

Centrica operated well Aurora in 2015. We are also firming up our Norwegian

programme where we have the Napoleon North well as a candidate for 2016

drilling, and we will potentially be looking for further short term

opportunities.?

HIGHLIGHTS & OUTLOOK

Production

Production for the first 6 months was 319,000 boe corresponding to an average

of 1,762 boepd net which is within target

-- Chestnut

The Hummingbird FPSO contract and hence Chestnut field life has been

extended, enabling production to at least March 2017. Further contract

extensions are being evaluated along with other long term options for the

field

-- Ettrick

The Aoka Mizu FPSO contract was extended to March 2016. Further extension

rights exist which can be exercised in future years. The field is producing

again following a planned extended shutdown over the summer to help extend

field life

-- Blackbird

The 20/02a-B3 production well was spudded in April and successfully

completed and tested in July achieving rates of over 7,000 bbls/day. The

well has now been tied back into the Aoka Mizu FPSO facilities and full

production has commenced

2014 Targets

-- Production average per day between 1,650 ? 1,900 boepd net for the year

Development

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

-- Orlando

The field was sanctioned for development in 2013. Discussions are in

progress with the operator of the Ninian Central Platform to secure

commercial terms for the modifications to the platform.

First oil is expected in 2016

-- Kells

Work is on-going to re-submit an FDP in 2014, with first oil planned in

late 2016 or 2017.

Atlantic Petroleum holds 25% in this licence

-- Perth

Joint studies ongoing between Faroe Petroleum (operator of Lowlander) and

the Perth group to determine the feasibility of a joint

Perth/Dolphin/Lowlander development.This appraise phase is expected to be

complete by year end 2014. Owners have agreed the commercial and ownership

framework and a Heads of Agreement for the Joint Development of the fields

signed, which covers equity alignment or ?Unitisation? process, budget and

management of the joint near term work programme, and plans for securing

finance for the project.

Exploration

Atlantic Petroleum?s exploration portfolio has several high profile prospects

identified.

-- Ivory

Atlantic Petroleum holds 9% of the participating interest in this high

profile well. The well is expected to be spudded in September with the West

Navigator

-- Pegasus

The well spudded in July and is currently drilling. If success-ful the well

will be tested. This will have a large impact on the future potential of

the Pegasus complex.

Result of the well is expected in September

Likely 2015 wells

-- Aurora

Large intra-carboniferous prospect located in the Southern North Sea, close

to the Breagh Field

-- Skerrywore

Prospect located in Central North Sea which is expected to be drilled in 2H

2015

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 strong

cash flow from three producing fields.

-- EBITDAX DKK 81.2MM (1H 2013 DKK 120.7MM)

-- Cash and cash equivalents DKK 194.6MM (End 2013 DKK 184.6MM)

-- Revenue DKK 198.2MM (1H 2013 DKK 214.2MM)

-- Exploration expense DKK 104.1MM (1H 2013 DKK 74.5MM)

-- General and administration costs

DKK 25.4MM (1H 2013 DKK 28.0MM)

-- Result after taxation DKK -36.0MM (1H 2013 DKK -2.5MM)

2014 Targets

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

Live webcast/Conference Call:

In connection with the publication of the 2Q 2014 Condensed Consolidated

Interim Report Atlantic Petroleum will host a live webcast followed by a

conference call.

The live webcast/conference call will take place on Friday 29st May 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 45 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. 36/2014

Issued 29-08-2014

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