Atlantic Petroleum P/F — Earnings Release 2015

May 27, 2015

Atlantic Petroleum produced 106,000 boe in Q1 2015. The Q1 result was a net loss of DKK 11.7MM

Atlantic Petroleum produced 106,000 boe in Q1 2015. The Q1 result was a net loss of DKK 11.7MM

Tórshavn, Faroe, 2015-05-27 07:27 CEST (GLOBE NEWSWIRE) --

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

today announces its results for the first three months of 2015. This company

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

Consolidated Interim Report attached to this announcement.

.

HIGHLIGHTS & OUTLOOK

Atlantic Petroleum has demonstrated exploration value creation in the short

term by monetising the Pegasus West discovery in the UK. On 7th May Atlantic

Petroleum announced that Third Energy will purchase Atlantic Petroleum?s 10%

working interests in the above Licences for a total potential consideration of

£16.5 million of which £7.5 million will be paid on completion of the deal.

Remaining payments are conditional on production from Pegasus West and further

development in the blocks.

In the first quarter this year Atlantic Petroleum was successful in the APA

2014 Licensing Round on the Norwegian Continental Shelf, with the Company being

offered 2 licences. Atlantic Petroleum also made a post-tax cash deal with

Statoil on the Norwegian shelf on PL 602 where a well was drilled resulting in

a discovery on the Roald Rygg structure. The discovered resources have marginal

economics on the basis of the costs and scheduled first production date

provided by the operator, consequently Atlantic Petroleum have decided to leave

the PL602 license and redirect its focus on adjacent licenses.

In March Atlantic Petroleum North Sea Limited announced that Nexen Petroleum UK

Ltd, a wholly owned subsidiary of CNOOC Limited, on behalf of the Ettrick joint

venture has signed a significant amendment agreement with Bluewater Ettrick

Production (UK) Ltd, to secure the use of the Aoka Mizu FPSO beyond March 2016.

The amendment will mean that the FPSO operating day rate will reduce after

March 2016, extending the economic life of the fields and combined with other

cost saving initiatives, result in a substantial reduction in the overall

operating costs for the Ettrick and Blackbird fields.

Production for the first 3 months was 106,000 boe corresponding to an average

of 1,178 boepd net which is lower than the target of 1,534 boepd. Production on

the Chestnut field was impacted during the first quarter by planned scale

squeeze operations. Production in January was also impacted by a planned well

intervention on the Ettrick Field. Both production fields are now back on

stream.

In March, the company reported the results of an updated Competent Persons

Report (CPR) undertaken by Gaffney, Cline and Associates (GCA)

-- Net Remaining economic 2P reserves (including Kells), as reported by GCA,

have moved from 8.6 mmboe to 7.6 mmboe, a 13% reduction. Over half the

reduction was caused by production during 2014, with the remainder being

due in-field adjustments and economic limit tests.

-- Net 2C Contingent oil resources have increased from 17.1 mmbls to 36.3

mmbls and 2C Contingent gas resources have increased from 21.3 bcf to 43.8

bcf. In terms of barrels of oil equivalent (boe), this results in overall

an increase of 111% from 20.7 mmboe to 43.6 mmboe.

-- Net ?Best? estimate of Prospective Risked Resources has increased from 50.7

mmboe to 53.6 mmboe, a 6% increase.

EBITDAX for the first 3 months was negative with DKK 28.2MM which was not

within guidance. The guidance for the full year 2015 remains within the

previous announced guidance of being positive. Revenue for 1Q 2015 was DKK

39.1MM and this was impacted by the lower than expected production and lower

oil price. Net loss for 1Q 2015 was DKK 11.7MM. Cash and cash equivalents at

end of 1Q 2015 was DKK 61.8MM and net assets/shareholders equity DKK 453.5MM.

Bank debt excluding exploration finance facility was DKK 58.5MM. The lower than

expected production in the first quarter and the reduced expenditure on

projects that are no longer economic at current prices results in Atlantic

Petroleum adjusting its full year guidance to 520,000 boe.

TARGETS 2015

-- Production - 520,000 boe

-- Financial ? positive EBITDAX

Ben Arabo, CEO commented:

?In the current period of low oil prices we are focusing on capital discipline

and on delivering the production potential of our portfolio. Our successful

Pegasus sale in a very difficult market does illustrate that it is possible to

create significant value from exploration in the short term. The sale has

strengthened the company and our priority is now to secure the remaining funds

for the ongoing Orlando development, which is set to more than double our oil

production in 2016.?

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 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?s head office is currently located

in Tórshavn, Faroe Islands (to be closed in 2015). 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.21/2015

Issued 27-05-2015

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