Atlantic Petroleum P/F — Investor Presentation 2014

Sep 11, 2014

PARETO CONFERENCE PRESENTATION – 11th SEPTEMBER 2014

DELIVERING ON GROWTH

• 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

PARETO CONFERENCE PRESENTATION – 11th SEPTEMBER 2014

A BALANCED E&P COMPANY

THIS IS ATLANTIC PETROLEUM

NW Europe exploration and production company

• 42 licenses on UK, Norwegian, Faroese, Irish and Dutch continental shelves
• Three producing fields 1,762 boepd in 1H 2014
• 1H 2014 revenue of DKK 198 MM
• One field under development; two approaching development sanction
• Total reserves of 8.7 MMBoe¹
• Nimble organisation 28 employees
• Maturing and highgraded exploration portfolio set to deliver
• Production company with development & exploration upside

Listed on NASDAQ OMX Copenhagen & Oslo Stock Exchange

• Market cap. DKK ~310MM
• Total Assets DKK 1,373MM
• Shareholders Equity DKK 587MM

Licence overview

Low gearing, solid production base with significant exploration upside

RESERVES GROWTH DELIVERED

RESERVES (CPR NUMBERS)

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

PRODUCTION & DEVELOPMENT

ATLANTIC PETROLEUM HAS 3 FIELDS IN PRODUCTION ON THE UKCS

YTD Production

• Annual production guidance 1,650-1,900 boe/d
• Current average production 1,762 boe/d

Production is expected to be within guidance

FUTURE PRODUCTION – ORLANDO FIELD DEVELOPMENT

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

• Re-entry of the existing 3/3b-13z well and completed as a horizontal producer with dual ESP's
• 10km subsea tie-back to Ninian Central Platform

Progress

• Continue working towards end 2016 first oil
• Line-pipe and tree manufacture substantially complete
• Negotiations for access to infra-structure nearing completion

Orlando provides production growth in 2016 of high value barrels

KELLS FIELD DEVELOPMENT

JV partners & equities:

• Iona Energy 75% (Operator)
• 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 of one or two wells to Ninian Central Platform
• Utilises existing topside equipment and shares Orlando modifications
• Flow assurance issues addressed by pipeline insulation (pipe in pipe)

Kells provides production growth following Orlando

PERTH – Developing an integrated plan

Perth – P588 15/21b & 15/21c

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

CPR Estimates

5.1MMBbl 2C contingent resources

Development Plans

A joint development concept through new infrastructure is being investigated

• Joint development now could include Perth & Dolphin (AP 13.35%) and Lowlander
• Offers combined potential resource base greater than 80mmboe
• Creates an enhanced economic opportunity from combining three fields
• Upside through other undeveloped discoveries

Owners have agreed the commercial and ownership framework

• Heads of Agreement for the Joint Development of the fields signed, covers;
• Equity alignment or "Unitisation" process
• Budget and management of the joint near term work programme
• Plans for securing finance for the project

Development of a three field oil hub has the potential to add significant value

EXPLORATION

ATLANTIC PETROLEUM EXPLORATION FOCUS

NW Europe exploration portfolio focusing in 5 key areas.

• Frontier / Emerging
• West of Shetland and Barents Sea positions being built on back of in-house knowledge.
• Attractive volumes to mid-caps and majors
• Emerging
• Mid Norway position built around Aasta Hansten and Asterix discoveries.
• Near term development potential on back of new infrastructure
• Emerging / Mature
• Strong UK Gas Basin position built with particular focus on Carboniferous.
• Portfolio built with key strategic relationship with Centrica chasing potential already demonstrated e.g. by Breagh, Cygnus
• Mature
• UK CNS focus on oil plays with near term development potential

Exploration focus areas Production/Development/ Near Development

Licence overview

Exploration portfolio built on strong in house knowledge

SNS CARBONIFEROUS PLAY FAIRWAY

• Atlantic Petroleum accessed considerable expertise and exposure to SNS, especially the emerging Carboniferous play fairway through its purchase of Volantis
• Several TCF of gas have been discovered in the Carboniferous play in recent years including the Pegasus (AP10%), Breagh, Crosgan and Cygnus discoveries
• AP has built a significant position in recent years to access the best opportunities to exploit this play

The Carboniferous play is relatively underexplored and offers volume potential

UK P1724 - PEGASUS

JV partners & equities:

• Centrica 55% (operator)
• Third Energy 35%
• Atlantic Petroleum 10%

Area:

• Southern North Sea, close to Cavendish Field
• Intra-Carboniferous structure, reservoirs & seals

Appraisal of 2011 Discovery:

• Pegasus North well drilled 2011 & discovered gas in Carboniferous Namurian sandstones
• Pegasus West well drilling ahead and now nearing reservoir target
• Drilled as a keeper well and tested, if successful

Resources:

Operator P50 for Pegasus complex: 198 BCF; CoSg 30%

Net Dry Hole Cost Exposure to AP

DKK15MM (50% of our costs are carried by Centrica)

The Pegasus area offers the potential for near term gas production

UK P2126 - AURORA

JV partners & equities:

• Centrica 45% (operator)
• GDF Suez 45%
• Atlantic Petroleum 10%

Area:

• Southern North Sea, close to Breagh Field
• Intra-Carboniferous structures, reservoirs & seals

Large untested prospect:

• Very large intra-carboniferous prospect identified on 2D data just north of Breagh Field
• Upside in newly identified Permian reef play
• New 3D shot in 2013
• Currently being interpreted
• Prospect upside is multiple TCF gross

Commitment:

• Contingent well commitment
• Possible drilling end 2015 / early 2016

The Aurora prospect offers multi-TCF potential in an emerging area

UK P1906 - YORK AREA

JV partners & equities:

• Centrica 52.5% (operator)
• Serica Energy 37.5%
• Atlantic Petroleum 10% 5% carried

Area:

• Southern North Sea, close to York Field
• Rotliegend & Intra-Carboniferous structures, reservoirs & seals

Large untested prospect:

• Several structures identified on trend with York & Rough fields, never previously covered by 3D seismic
• New 3D shot in 2013
• Currently being interpreted

Commitment:

• Drill or Drop well
• Possible drilling end 2015 / early 2016

The York Area prospects offers early production potential through tie-back to York Field

UK P2082 - SKERRYVORE

JV partners & equities:

• Parkmead 30.5% (operator)
• Atlantic Petroleum 30.5%
• Bridge Energy 25%
• Dyas 14%

Area:

• Central North Sea, close to Orion, Talbot, Cawdor & Flyndre
• Adjacent to salt diapir

Multiple target levels:

• Two stacked prospects at the Palaeocene and Chalk level
• The Skerryvore Palaeocene prospect is thought to be similar to the recent Talbot discovery to the north
• The deeper Skerryvore Tor prospect shows a similar seismic response to the neighbouring Cawdor discovery
• Skerryvore is a commitment well which is expected to be drilled in 2H 2015
• GCA CPR gives unrisked 25MMboe net to AP in two targets

The Skerryvore prospect offers the potential for near term oil production

BUILDING A POSITION AROUND NEW INFRASTRUCTURE

PL528/528B Ivory (Blocks 6707/8,9,11 and 6707/10 part) – Farm in 2013

Centrica 40% (Op.), Statoil 35%, Rocksource 10%, Atlantic Petroleum 9%*, Repsol 6%*

PL763 Karius (Blocks 6606/2,3) – APA 2013 award

Repsol 40% (Op), Rocksource 30%, Atlantic Petroleum 30%

PL705 Napoleon North (Blocks 6705/7 (part),8,9,10(part)) – 22nd Round award

Repsol 40% (Op), EON 30%, Atlantic Petroleum 30%

PL704 Napoleon South (Blocks 6705/10 & 6704/12) – 22nd Round award

EON 40% (Op), Repsol 30%, Atlantic Petroleum 30%

PL602 (Blocks 6706/10, 11, 12) – Farm-in 2014*

Statoil 40% (Op), Petoro 20%, Centrica 20% Rocksource 10%, Atlantic Petroleum 10%

PL601 (Blocks 6609/3, 6610/1) – Farm-in 2014*

Wintershall 40% (Op), Edison 20%, North Energy 20%, Rocksource 10%, Atlantic Petroleum 10%

*) Subject to government approval

Significant prospect inventory with multi TCF potential in vicinity of new infra-structure

PL528/528B IVORY - NORWEGIAN SEA

JV partners & equities:

Centrica 40% (Op.), Statoil 35%, Rocksource 10%, Atlantic Petroleum Norge 9%*, Repsol 6%*

• Gross recoverable resources up to 306 MMboe
• Gas prone area with possibility for oil
• Adjacent to Aasta Hansteen field (2017 first gas)
• Seismic and EM DHI support
• Several other large prospects within the license with DHI support
• Earliest spud: September 2014 (West Navigator)

*) Subject to government approval

High impact exploration well with significant follow on potential

SUMMARY & OUTLOOK

TARGETS 2014

TARGETS 2014

PRODUCTION

Production in 2014 average between 1,650–1,900 boepd net

1H ²⁰¹⁴: 1,762 boepd 1H 2014: 81.2MM 1H 2014: 2 wells drilled

FINANCIAL

EBITDAX in the range DKK 125MM - 175MM

EXPLORATION

Drill 4 exploration/appraisal wells targeting 86MMboe of net un-risked resources

AP is a small-cap with a large exploration portfolio and production

• Large exploration upside
• Strong short term cashflow
• Near term production under development
• Robust programme with several potential near term triggers:
• UK Pegasus West well currently drilling
• Norway Ivory well to be spudded imminently
• Resolution of topsides issues on Orlando development
• Kells Approval & finalization of debt funding
• 2015 drilling programme Aurora, Skerryvore, York Area + 1 yet to be named well

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