Atlantic Petroleum P/F — M&A Activity 2015

Jul 31, 2015

Atlantic Petroleum Announces the Completion of the Sale of the Pegasus Discovery

Atlantic Petroleum Announces the Completion of the Sale of the Pegasus Discovery

Tórshavn, Faroe Islands, 2015-07-31 16:13 CEST (GLOBE NEWSWIRE) --

P/F Atlantic Petroleum (?Atlantic Petroleum?) (NASDAQ OMX COPENHAGEN: ATLA DKK

& Oslo Stock Exchange: ATLA NOK) today announces that its subsidiary Atlantic

Petroleum UK Limited has completed on the sale and purchase agreement with

Third Energy Offshore Limited for the sale of Atlantic Petroleum?s interests in

P1724 (UK Block 43/13b which contains the Pegasus West Gas Discovery), P1727

(UK Blocks 43/17b and 43/18b) and P2128 (Block 43/12).

Third Energy has purchased Atlantic Petroleum?s 10% working interests in the

above Licences for a total potential consideration of £16.5 million of which

£7.5 million was paid on completion. Remaining payments are conditional on

production from Pegasus West and further development in the blocks.

The Pegasus West well (43/13b-7) was drilled and tested at a combined rate of

91 MMscfpd (million standard cubic feet per day) in late 2014. The well is

approximately 7 km WSW of the 43/13b-6Z Pegasus North discovery well. Both

wells are in P1724, close to the producing Cavendish Field. The licences are

operated by Centrica North Sea Gas which holds 55% equity. Prior to the sale,

Atlantic Petroleum held 10% equity with the remaining equity 35% held by

Third Energy Offshore.

CEO Ben Arabo comments: ?We are very pleased to announce the completion of the

Pegasus deal. This strengthens our balance sheet during the current period of

low oil prices and demonstrates the value of our exploration portfolio.?

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 34 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 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 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.24/2015

Issued 31-07-2015

P/F Atlantic Petroleum

Yviri við Strond 4

P.O. Box 1228

FO-110 Tórshavn

Faroe Islands

Telephone +44 208 834 1045

Fax +44 208 834 1125

Website: www.petroleum.fo

E-mail: petroleum@petroleum.fo