Atlantic Petroleum P/F — M&A Activity 2014

Apr 29, 2014

Atlantic Petroleum acquires 15% of Norwegian Licence PL528/PL528B containing the Ivory Prospect

Atlantic Petroleum acquires 15% of Norwegian Licence PL528/PL528B containing the Ivory Prospect

Tórshavn, Faroe Islands, 2014-04-29 08:01 CEST (GLOBE NEWSWIRE) --

With reference to stock exchange notice issued January 2nd 2014 regarding a

farm-in option agreement with Rocksource ASA for the PL528 licence in the

Norwegian Sea, P/F Atlantic Petroleum (OMX: FO-ATLA CSE & Oslo Børs: ATLA) is

pleased to announce that the Group has decided to acquire 15% of the

participating interest in PL528/PL528B.

Centrica is operator of the licence with an equity interest of 40%. Other

licence partners are Statoil 35% and Rocksource 10% (post-deal).

The PL528 licence contains the Ivory prospect sanctioned for drilling in the

second half of 2014. The Ivory prospect is gas prone with Direct Hydrocarbon

Indicator (DHI) support. It is adjacent to the Statoil-operated Aasta Hansteen

field development which is due to come on stream in 2017. Rocksource currently

carries a pre-drill resource range estimate of up to 306 mmboe. Numerous other

prospects have been identified within the licence. The agreement is subject to

approval by the Norwegian Government.

Atlantic Petroleum has defined the Aasta Hansteen area in the Norwegian Sea as

one of the key areas for future exploration. This links to the strategic

decision made to establish the Aasta Hansteen field as a hub for gas in the

area, thus allowing the establishment of a new gas province. Through this

farm-in agreement and participation in the 22nd concession round and the APA

2014, the Company has secured a significant ownership interest in four licences

in this part of the Norwegian Sea.

Ben Arabo, CEO, commented:

?We are pleased to add significant ownership in yet another licence in the

Aasta Hansteen area. We believe that the area carries significant potential and

we are now positioned to take advantage of this potential with the 15%

ownership in PL528/528B and the 30% ownership in licences PL763, PL704 and

PL705. The significant ownership allows investigation into future deal

structures that can both bring new exploration opportunities to the table and

also reduce exploration cost.?

Jonny Hesthammer, MD in Atlantic Petroleum Norge, commented:

?The Ivory prospect is a large structure. Earlier this year, the Company

secured access to electromagnetic (EM) data over the licence and our technical

staff has spent several months analyzing the data together with other available

geological and geophysical information. The results from these studies are

encouraging and Atlantic Petroleum is of the opinion that a discovery with the

Ivory well has a clear potential to be a company maker. A discovery on the

Ivory structure will also have significant impact for the other prospects in

the licence as well as for the other acreage the Company has ownership to in

the area.?

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 40 oil and gas

licences in the UK, Norway, Faroe Islands, Ireland and the Netherlands, 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 main office is

located in Tórshavn, Faroe Islands, and 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 Børs.

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.19/2014

Issued 29-04-2014

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