Atlantic Petroleum P/F — M&A Activity 2015

May 7, 2015

Atlantic Petroleum Announces Sale of Pegasus Discovery

Atlantic Petroleum Announces Sale of Pegasus Discovery

Tórshavn, Faroe Islands, 2015-05-07 06:45 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 signed a 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).

Under the sale and purchase agreement, Third Energy will purchase Atlantic

Petroleum?s 10% working interests in the above Licences for a total potential

consideration of £16.5 million of which £7.5 million will be 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. Atlantic Petroleum

holds 10% equity and the remaining equity 35% is held by Third Energy Offshore.

CEO Ben Arabo comments: ?The sale of the Pegasus discovery and its surrounding

acreage is a part of our strategy to realise value at an early stage from our

exploration successes. The proceeds from the sale will be used to strengthen

our balance sheet during the current period of low oil prices. The price

achieved clearly 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.18/2015

Issued 07-05-2015

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