Atlantic Petroleum P/F — Earnings Release 2015

May 27, 2015

WEBCAST PRESENTATION – 27th MAY 2015

Q1 2015 RESULTS

• This presentation includes statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements
• No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principal shareholders or subsidiary undertakings or any of such person's officers or employees or advisors accept any liability whatsoever arising directly or indirectly from the use of this document

WEBCAST PRESENTATION – 27th MAY 2015

Q1 PERFORMANCE

• Production for the first 3 months was 106,000 boe corresponding to an average of 1,178 boepd net
• 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.
• EBITDAX for the first 3 months was negative with DKK 28.2MM.
• Net assets/shareholders equity DKK 453.5MM.
• Pegasus West
• Norway PL602

Ettrick & Blackbird

Q1 Production impacted by a planned well intervention

Chestnut

Q1 production impacted by scale squeezes

Revised Production Target 2015 520,000 Boe

	3 months to 31st March	3 months to 31st March	Full year
DKK 1,000	2015	2014	2014
Revenue	39,143	112,706	343,146
Cost of sales	-53,246	-73,894	-530,002
Gross loss/profit	-14,102	38,812	-186,856
Exploration expenses	-1,434	-81,333	-214,862
Pre-licence exploration cost	-654	-3,451	-12,631
General and administration cost	-12,117	-14,188	-41,548
Depreciation PPE & Intangible assets	-2,834	-3,860	-16,675
Other operating cost/income	-12,457	0	18,500
Operating loss	-43,598	-64,020	-454,073
Interest expenses/income and finance cost/gain	-11,535	-4,463	-30,142
Loss before taxation	-55,133	-68,483	-484,215
Taxation	43,433	55,796	265,958
Loss after taxation	-11,700	-12,687	-218,257
Earnings per share (DKK):
Basic	-3.16	-3.43	-59.03
Diluted	-3.16	-3.43	-59.03

CONSOLIDATED BALANCE SHEET

	At 31st March	At 31st March	At 31st December
DKK 1,000	2015	2014	2014
Non-current assets
Goodwill	55,617	55,111	51,917
Intangible assets	14,740	28,332	16,576
Intangible exploration and evaluation assets	311,628	235,484	258,653
Tangible development and production assets	411,764	613,886	369,079
Property plant and equipment	1,925	2,625	2,036
Tax repayable	27,483	79,608	0
	823,157	1,015,046	698,261
Current assets
Inventories	26,929	31,106	17,019
Trade and other receivables	71,377	90,470	81,398
Tax repayable	151,555	44,443	145,374
Financial assets	7,777	0	19,027
Cash and cash equivalents	61,762	173,165	111,989
	319,401	339,185	374,808
Total assets	1,142,558	1,354,230	1,073,068
Current liabilities
Exploration finance facility	151,555	41,280	146,238
Short term bank debt	19,500	19,500	19,500
Short term liabilities	0	0	40
Trade and other payables	91,732	170,157	92,198
Financial liabilities	0	739	0
Current tax payable	4,430	1,129	4,104
	267,217	232,805	262,080
Non-current liabilities
Exploration finance facility	24,344	0	0
Long term bank debt	39,000	58,500	39,000
Long term provisions	203,282	174,998	187,381
Deferred tax liability	155,181	293,062	161,426
	421,808	526,560	387,807
Total liabilities	689,025	759,365	649,887
Net assets	453,533	594,865	423,181
Equity
Share capital	369,786	369,786	369,786
Share premium account	233,444	233,470	232,444
Share based bonus schemes - LTIP	6,690	3,737	5,766
Futures Contracts Value	0	-739	0
Translation reserves	91,443	19,171	50,316
Retained earnings	-247,830	-30,560	-236,131
Total equity shareholders´ funds	453,533	594,865	423,181

Exploration & Appraisal

EXPLORATION		2015			2016			2017
		1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q	1Q	2Q	3Q	4Q
Y A W
	PL705 NAPOLEON / SURNA						Possible Well
R O N	PL602 ROALD RYGG			Firm Well
K U
	P1610 MAGNOLIA / LIBERATOR										Possible Well
	P1906 GREATER YORK									Possible Well
	P2082 SKERRYVORE							Firm Well
	P2126 AURORA									Contingent Well
	P2128 ANDROMEDA								Contingent Well

Developments

ORLANDO – ON TRACK FOR 2016 FIRST OIL – LOW COST BARRELS

Planned Location of Orlando Riser Hang-off structure on Ninian Central Platform

JV partners & equities

Iona Energy 75% (Operator), Atlantic Petroleum 25%

CPR estimates

• Orlando net 2P reserves of 3.8 MMboe
• Orlando initial rates expected at 10,000+ bopd

Development Progress

• Infrastructure agreements signed in October 2014 for first oil late 2016
• Brown-field modifications to Ninian Platform being rapidly progressed
• Line-pipe and tree manufacture substantially complete
• Several other key contract awards imminent. Costs are being managed without compromising first oil date

Robust Project – Low OPEX barrels

• Opex per boe estimated at USD15
• Capex per boe to first oil estimated at USD 14 16

Orlando provides production growth by end 2016 of low cost barrels

NEAR DEVELOPMENTS – KELLS & PERTH

KELLS – P1607 3/8d

Iona Energy (Operator) 75%, Atlantic Petroleum 25%

CPR estimates

• Kells net 2P reserves of 2.25 MMboe
• Kells initial rates expected at 7,000+ bopd
• First production expected 2017

Development plan

Subsea tieback to Ninian Central Platform

PERTH – P588 15/21b & 15/21c

Parkmead Group (Operator) 52.13%, Faroe Petroleum 34.62%, Atlantic Petroleum 13.35%

CPR Estimates

6.4MMBbl 2C contingent resources

Development Plans

• Joint development now could include Perth & Dolphin (AP 13.35%) and Lowlander
• Offers combined potential resource base greater than 80MMboe
• Heads of Agreement for the Joint Development of the fields signed

Kells provides production growth following Orlando

CHESTNUT & CHESTNUT RE-DEVELOPMENT

Chestnut – P354, Block 22/2a

Located in the UK sector of the Central North Sea

JV partners and interests:

• Centrica Energy Upstream (Operator) 69.875%
• Dana Petroleum (E&P) Limited 15.125%
• Atlantic Petroleum 15.000%

Wells

• 2 production wells, 1 water injector
• 22/2a -11X started production in September 2008
• 22/22a-16Y tied to Chestnut facilities and started production in 2009 (water injection well in 2011)

Production and facilities

• Leased FPSO "Hummingbird" from Teekay
• The contract for the Teekay Hummingbird FPSO has been extended to allow the field to produce to end 1Q 2017 and further extensions will be sought when field production performance and expectation allows the commitment to be made

2P Reserves

0.65 MMBoe (Net to AP)

Production history

• Production to date c. 16 MMBLS
• FDP based on 8 MMBLS
• Over-performance has led to operator re-looking at field model and future predictions
• Up to 14 MMBLS remaining potential if redevelopment undertaken

Operator working towards redevelopment investment decision in Q1 2016

Pegasus - Value Unlocked

GAS DISCOVERY ON PEGASUS WEST

PEGASUS WEST TIMELINE

Did the market react?

GAS DISCOVERY ON PEGASUS WEST

Summary & Outlook

TARGETS 2015

TARGETS 2015

PRODUCTION 520,000 BOE

FINANCIAL EBITDAX POSITIVE

EXPLORATION DRILL NORWAY ROALD RYGG

WEBCAST PRESENTATION – 27TH MAY 2015

RESERVES (CPR NUMBERS)

MMBoe

1) Source: Competent Person's Reports by Fugro Robertson (year 2009-2012) & GCA (year end 2013 & 2014)

THE WAY FORWARD

• Capital discipline is key
• Prioritise development & production Capex in the short term to get to first oil on Orlando in 2016. Production is set to more than double in 2016
• Build and protect exploration portfolio for drilling activity in 2016 and onwards for longer term growth
• A wide range of funding options and ways to realise the value of AP's assets are being pursued. Removing funding uncertainty unlocks value

CONTACT

Headquarters, Faroe Islands

P/F Atlantic Petroleum Yviri við Strond 4 P.O.Box 1228 Faroe Islands Tel +298 350 100

Norway office, Bergen

Atlantic Petroleum Norge AS Edvard Griegsvei 3c 5059 Bergen Norway Tel +47 9920 5989

UK office, London

Atlantic Petroleum (UK) Limited 26/28 Hammersmith Grove London W6 7BA United Kingdom Tel +44 20 8834 1045

Ben Arabo, CEO Tel +298 350 100 E-mail: ben.arabo@petroleum.fo