Atlantic Petroleum P/F — Earnings Release 2014

Mar 25, 2015

Annual Results 2014

Annual Results 2014

Tórshavn, Faroe Islands, 2015-03-25 07:38 CET (GLOBE NEWSWIRE) --

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

ATLA NOK) today announces its results for 2014. This company announcement

should be read in conjunction with the Group?s Annual and Consolidated Report

and Accounts 2014.

.

HIGHLIGHTS

-- Produced 586,000 boe (1,605 boepd)

-- Commercial gas discovery on Pegasus West in September 2014 ? Tested at over

90MMscf/d (15,000 boepd)

-- Gas discovery on Norway PL528/PL528B Ivory ? Results being analysed;

assessing commerciality

-- EBITDAX of DKK 124MM

-- Operating Cashflow DKK 96.8MM from a realized oil price of USD 101 per bbl

-- Net Result after taxation loss of DKK 218.3MM largely due to impairments

(DKK 209.1MM) of the producing assets caused by the recent oil price

decline

-- Total equity shareholders? funds at year end DKK 423.2MM

-- Cash and Cash Equivalents at year end DKK 112MM

-- Contract extensions and future opportunities identified on Ettrick and

Chestnut

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

have moved from 8.6MMboe to 7.6MMboe, a 13% reduction

-- Net 2C Contingent oil resources have more than doubled from 20.7MMboe to

43.6MMboe

RESPONSE TO LOW OIL PRICE ENVIRONMENT

-- Re-focussing exploration from 5 countries to 3

-- Deferral of 2015 exploration drilling programme to manage costs

-- Rationalise exploration portfolio

-- Negotiating cost reductions across the supply chain

-- Commenced sales and farm out process of certain assets

-- Overhead reduction including the closure of the Faroes office

-- Pursuit of new funding options

TARGETS 2015

-- Production - 560,000 boe

-- Development ? progress Orlando towards first oil in 2016

-- Exploration ? Drill Roald Rygg well on PL602 in Norway

-- Financial ? positive EBITDAX

Ben Arabo, CEO commented:

2014 was a positive year in many areas for Atlantic Petroleum. The Group made a

commercial gas discovery in the UK - Pegasus West tested at over 90MMscf/d

which makes it one of the most significant discoveries in the UK in 2014. In

addition to this we made two discoveries in Norway that are being further

analysed. We are building for the future by increasing our contingent resources

significantly and the exploration portfolio was further high graded with new

high potential licences.

Nonetheless 2014 ended as a disappointing year. The business environment has

deteriorated significantly in terms of the oil price and this has had a large

impact on Atlantic Petroleum?s balance sheet. We have written down DKK 209.1MM

on our producing assets as a direct consequence of the low oil prices.

The Group has reacted to the sharp decline in oil price by taking prompt

action, and we will be using our position with low debt and commercial

flexibility to work towards restoring the Group?s profitability at current

market conditions in 2015.

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.12/2015

Issued 25-03-2015

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