Atlantic Petroleum P/F — Earnings Release 2015

Aug 27, 2015

Production, Gross Profit & EBITDAX increased from 1Q 2015 to 2Q 2015. Gross Profit and EBITDAX back in black.

Production, Gross Profit & EBITDAX increased from 1Q 2015 to 2Q 2015. Gross Profit and EBITDAX back in black.

Tórshavn, Faroe Islands, 2015-08-27 07:24 CEST (GLOBE NEWSWIRE) --

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

today announces its results for the second quarter of 2015. This company

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

Consolidated Interim Report attached to this announcement.

.

HIGHLIGHTS & OUTLOOK

Production for 2Q was 134,200 boe (1Q 2015: 106,000 boe) corresponding to an

average of 1,475 boepd net (1Q 2015: 1,178 net) which results in an average of

1,327 boepd net for the first six months.

EBITDAX for 2Q was positive with DKK 7.7MM and contributed to reduce the total

negative EBITDAX down to negative DKK 20.5MM for the first half of the year.

Gross profit also went from negative in 1Q 2015 to positive in 2Q 2015. Gross

profit in 2Q 2015 was DKK 9.7MM (DKK -14.1MM in 1Q 2015).

Revenue for 2Q 2015 was DKK 76.5MM (1Q DKK: 39.1MM) and this was impacted by

the lower than expected production and lower oil price. Net loss for 2Q 2015

was DKK 15.4MM and the net loss for 1H 2015 was DKK 27.1MM.

Cash and cash equivalents at end of 2Q 2015 was DKK 15.2MM. Cash and cash

equivalents 25th August was DKK 62MM.

Net assets/shareholders equity is DKK 450.4MM.

G&A costs have been reduced significantly and are DKK 9.1MM in 2Q 2015 (DKK

12.1 in 1Q 2015).

The Pegasus West transaction with Third Energy Offshore Limited completed 31st

July and will be accounted for in 3Q 2015 which will result in an extraordinary

income of GBP 5.6MM (DKK 57.8MM) in 3Q 2015.

On the 3rd August Atlantic Petroleum announced that its Board of Directors has

authorized the Company's management team to explore a broad range of strategic

alternatives to further enhance shareholder value. Pareto Securities AS has

been engaged as the Company's financial advisors in this process.

As part of the strategic review. Atlantic Petroleum will consider a full range

of options in order to unlock the value underlying the Company's assets,

including:

-- A sale or merger of the Company;

-- A sale, joint venture or partnership in respect of the Company's activities

in the United Kingdom and/or Norway; or

-- Continuing to execute on the Company's strategy as an independent company.

The process is currently ongoing, and Atlantic Petroleum does not expect to

update the market with any further information on the process unless and until

its Board of Directors has approved a specific transaction or otherwise deems

disclosure appropriate or necessary.

Ben Arabo, CEO commented:

?We have delivered a positive gross profit and EBITDAX in spite of a very

challenging market environment. We have reduced our G&A significantly and will

continue to focus on capital discipline. With the completion of the Pegasus

deal 31st July we have demonstrated to shareholders that assets can be highly

valued even in adverse market conditions. The review of strategic alternatives

initiated will allow us to explore other options that can accelerate the

realization of value for the benefit of our shareholders.?

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 37 oil and gas

licences in the UK, Norway, and Ireland, 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 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.28/2015

Issued 27-08-2015

P/F Atlantic Petroleum

Yviri við Strond 4

P.O. Box 1228

FO-110 Tórshavn

Faroe Islands

Telephone +44 208 834 1045

Fax +44 208 834 1125

Website: www.petroleum.fo

E-mail: petroleum@petroleum.fo