Atlantic Petroleum P/F

Quarterly Report • May 30, 2025

P/F ATLANTIC PETROLEUM

REPORT FOR THE 3 MONTHS ENDED 31st MARCH 2025

CONDENSED CONSOLIDATED INTERIM REPORT FOR THE 3 MONTHS ENDED 31 st MARCH 2025

Faroese Company Registration No/VAT No: 2695/475653

P/F Atlantic Petroleum Condensed Consolidated Interim Report 1Q 2025 Issued 30th May 2025 petroleum@petroleum.fo www.petroleum.fo 1

LOOKING FORWARD

Following a lengthy process Atlantic Petroleum reached an agreement on the 4th April 2025 with its main creditors to reduce the Company's debt. The total debt will be reduced by at least DKK 90MM after finalization of the debt restructuring.

The expectation is that the Orlando field will continue to produce at stable rates in 2025. The Company expects to be cash generating in 2025. This is based on the forecasted Orlando production, oil prices and exchange rates at year-end. Therefore, the actual outcome may differ materially from the forecast.

The activity level in Atlantic Petroleum has been kept to a minimum these past years to limit costs as much as possible. The G&A cost for the year 2024 was DKK 2.4MM. The cashflow situation in the Group will still be tight in 2025, and the activity level will be kept at a minimum in the near future.

The Board sees the debt restructuring as a pre-requisite for the company to continue. Having a potential avenue to repay debt, could make it possible for the Group to raise capital, should the right opportunity arise and should the market conditions be favourable.

The Orlando field, being a subsea tie-back to Ninian, is becoming a mature asset reaching the end of its life. The Group is not party to any discussions on decommissioning and has assumed, in preparing its forecasts and valuing the royalty, that production continues to the end of 2026.

Given the relative short lifespan remaining on the Orlando field, it is necessary for Atlantic Petroleum to replace it to grow in the future. Therefore, the Board will prioritise reviewing new possible opportunities in the market in 2025.

Given the pending agreement on the debt restructuring, the projections prepared by the Directors and review of future opportunities once the debt restructuring is completed, the accounts have been prepared on a going concern basis.

The ability of the Group to continue as a going concern is dependent on the finalization of the debt restructuring, and the cash flows generated from the interest in the Orlando field. In the event, that the Group is unable to continue to trade, significant downward adjustments would be required to the fair value of the Group's economic interest in the Orlando asset to present the value of these assets on a break-up basis.

HIGHLIGHTS & OUTLOOK

Highlights for Q1 2025 were:

Operating loss was DKK 2.5MM

Net loss was DKK 2.3MM

Net assets/share-holders equity was DKK -115.1MM

Bank debt was DKK 59.4MM

The Board will prioritize finalization of the debt restructuring. Pending finalization of debt solution, the Group will be actively pursuing growth through participation in production or near production assets in low political risk countries in the Northern Hemisphere.

PERFORMANCE SUMMARY

KEY METRICS 
	3 months	3 months
	to 31st Mar	to 31st Mar	Full year
	2025	2024	2024
DKK 1,000
Income statement
Revenue	0	0	0
Impairment on producing assets	0	0	0
Gross loss/profit	0	0	0
Exploration expenses	0	0	0
Earning before interest, tax, depreciation, amortization and exploration expense (EBITDAX)	-2,482	600	945
Operating profit/loss (EBIT)	-2,482	600	945
Depreciations	0	0	0
Profit/loss before taxation (EBT)	-2,299	-219	-2,430
Profit/loss after taxation	-2,299	-219	1,396
Financial position
Non-current assets	1,954	9,929	7,620
Current assets	9,002	14,233	8,271
Total assets	10,955	24,154	15,891
Current liabilities	102,377	116,238	105,038
Non-current liabilities	23,660	23,655	23,658
Total liabilities	126,037	139,893	128,696
Net assets/Equity	-115,082	-115,739	-112,805
Cash flow and cash
Cash provided by operating activities	554	-703	445
Change in cash and cash equivalents	748	-1,550	-2,892
Cash and cash equivalents	802	4	31
Bank debt – excluding drawdown	59,434	59,438	59,434
Share related key figures
Earnings per share Basic	-0.62	-0.06	0.38
Earnings per share Diluted	-0.62	-0.06	0.38
Share price in DKK on OMX CPH	1.95	2.93	1.57

PORTFOLIO 31TH MARCH 2025

Status on Key Licences PURSUING POTENTIAL VALUE

Atlantic Petroleum has further rationalized its portfolio in 2025 and will look to further rationalize on best commercial terms for the Group. Nevertheless, the strategy for 2025 will be to pursue near or at production opportunities in low political risk countries in the Northern Hemisphere that bring low liability and strong upside.

As of 31st March 2025 the status of Group assets is:

Country	License	Field/Discovery/Prospect	Company	Equity	Comments
Ireland	SEL 2/07	Hook Head/Dunmore/Helvick	AP I	18.33%	Commerciality being reassessed

Development & Production

PRODUCING ASSETS

The Group does not hold producing assets.

DEVELOPMENT & NEAR DEVELOPMENT

The Group holds no Development or near Development assets.

Exploration & Appraisal

Atlantic Petroleum has no exploration activity planned for 2025 and does not consider exploration a fiscally acceptable risk for the Group in the imminent future.

SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

THE FOLLOWING SIGNIFICANT EVENTS HAVE OCCURRED AFTER 31 st MARCH 2025:

• No significant events after the Balance Sheet Date

ENDORSEMENT AND SIGNATURES OF THE MANAGING DIRECTOR AND BOARD OF DIRECTORS

The Condensed Consolidated Interim Report for the first three months of 2025 comprises the Consolidated Statement of Financial Position of P/F Atlantic Petroleum and its subsidiaries. The Condensed Consolidated Interim Report is prepared in accordance with International Financial Reporting Standard 34 "Interim Financial Reporting" as adopted by the European Union.

We consider the accounting policies used to be appropriate, such that the interim report gives a true and fair view of the Group's assets, liabilities and financial position at 31 st March 2025, and of the results of the Group's operations and cash flow for the period 1st January – 31 st March 2025.

Tórshavn 30 th May 2025

Management:

Mark T. Højgaard CEO

Board of Directors:

Ben Arabo Mourits Joensen Mark T. Højgaard Chairman Deputy Chairman Board member

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE 3 MONTHS ENDED 31 st MARCH 2025

CONSOLIDATED INCOME STATEMENT

		3 months	3 months
		to 31st March	to 31st March	Full Year
DKK 1,000	Note	2025	2024	2024
Revenue		0	0	0
Costs of sales	6	0	0	0
Gross profit/loss		0	0	0
Exploration expenses		0	0	0
Orlando deferred consideration		-2,812	1,358	3,371
Pre-licence exploration cost		0	0	0
General and administration cost		327	-758	-2,426
Depreciation PPE and intangible assets	11	0	0	0
Other operating cost/income		0	0	0
Operating profit/loss	5	-2,485	600	945
Interest income and finance gains	7	0	0	0
Interest expenses and other finance costs	7	186	-819	-3,376
Profit/loss before taxation		-2,299	-219	-2,430
Taxation	8	0	0	3,827
Profit/loss after taxation		-2,299	-219	1,396
Earnings per share (DKK):
Basic		-0.62	-0.06	0.38
Diluted		-0.62	-0.06	0.38

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	3 months	3 months
	to 31st March	to 31st March	Full Year
DKK 1,000	2025	2024	2024
Items that may be recycled in P/L:
Profit/loss for the period	-2,299	-219	-20,731
Exchange rate differences	22	366	3,181
Total comprehensive
Income/loss in the period	-2,277	147	-17,550

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

		at 31st March	at 31st March	at 31st Dec
DKK 1,000	Note	2025	2024	2024
Non-current assets
Intangible assets	10	0	0	0
Intangible exploration and evaluation assets	11	0	0	0
Tangible development and production assets	12	0	0	0
Property plant and equipment	13	0	0	0
Other receivables	14	4,987	9,921	11,916
Deferred tax asset		0	0	0
		4,987	9,921	11,916
Current assets
Trade and other receivables	14	5,166	14,832	12,950
Cash and cash equivalents		802	4	1,136
		5,968	14,233	14,086
Total assets		10,955	24,154	26,002
Current liabilities
Short term bank debt		59,434	59,438	59,438
Trade and other payables	15	42,943	53,024	55,080
Current tax payable		0	3,776	3,724
		102,377	116,238	118,242
Non-current liabilities
Long term bank debt		0	0	0
Convertible loan facility		11,936	11,936	11,936
Long term provisions		11,724	11,719	11,711
Deferred tax liability		0	0	0
		23,660	23,655	23,647
Total liabilities		126,037	139,893	141,889
Net assets		-115,082	-115,739	-115,886
Equity
Share capital	16	3,698	3,698	3,698
Translation reserves		94,905	93,564	93,197
Retained earnings		-213,685	-213,001	-212,782
Total equity shareholders´ funds		-115,082	-115,739	-115,886

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

	Share	Translation	Retained
DKK 1,000	capital	reserves	earnings	Total
At 1st January 2024	3,698	93,197	-212,782	-115,886
Translation reserves	0	367	0	367
Result for the period	0	0	-219	-219
At 31st Mar. 2024	3,698	93,564	-213,001	-115,739
Translation reserves	0	1,319	0	1,319
Result for the period	0	0	1,616	1,616
At 31st Dec. 2024	3,698	94,883	-211,385	-112,805
Translation reserves	0	22	0	22
Result for the period	0	0	-2,299	-2,209
At 31st Mar. 2025	3,698	94,905	-213,685	-115,082

CONSOLIDATED CASH FLOW STATEMENT

	3 months	3 months
	to 31st March	to 31st March	Full year
DKK 1,000	2025	2024	2024
Operating activities
Operating profit/loss	-2,485	600	945
Other income	0	0	0
Impairment on exploration and evaluation assets	0	0	0
Relinquishment and disposal of licences	0	0	0
Depreciation, depletion and amortisation	0	0	0
Impairment on producing licences	0	0	0
Change in inventories	0	0	0
Change in trade and other receivables	5,706	717	9,006
Change in trade and other payables	-2,661	-2,056	-9,476
Interest revenue and finance gain received	0	0	0
Interest expenses and other finance cost	-7	36	-31
Income taxes	0	0	0
Net cash flow provided by operating activities	554	-703	445
Investing activities
Capital expenditure	192	-855	-3,345
Net cash used in investing activities	192	-855	-3,345
Financing activities
Change in short term debt	0	0	-3
Change in long term debt	2	8	11
Net cash flow provided from financing activities	2	8	8
Change in cash and cash equivalents	748	-1,550	-2,892
Cash and cash equivalents at the beginning of the period	31	1,136	1,136
Currency translation differences	22	418	1,788
Cash and cash equivalents at the end of the period	802	4	31

NOTES TO THE ACCOUNTS

1. Going Concern

Following a lengthy process Atlantic Petroleum reached an agreement on the 4th April 2025 with its main creditors to reduce the Company's debt. The total debt will be reduced by at least DKK 90MM after finalization of the debt restructuring.

The expectation is that the Orlando field will continue to produce at stable rates in 2025. The Company expects to be cash generating in 2025. This is based on the forecasted Orlando production, oil prices and exchange rates at year-end. Therefore, the actual outcome may differ materially from the forecast.

The activity level in Atlantic Petroleum has been kept to a minimum these past years to limit costs as much as possible. The G&A cost for the year 2024 was DKK 2.4MM. The cashflow situation in the Group will still be tight in 2025, and the activity level will be kept at a minimum in the near future.

The Board sees the debt restructuring as a pre-requisite for the company to continue. Having a potential avenue to repay debt, could make it possible for the Group to raise capital, should the right opportunity arise and should the market conditions be favourable.

The Orlando field, being a subsea tie-back to Ninian, is becoming a mature asset reaching the end of its life. The Group is not party to any discussions on decommissioning and has assumed, in preparing its forecasts and valuing the royalty, that production continues to the end of 2026.

Given the relative short lifespan remaining on the Orlando field, it is necessary for Atlantic Petroleum to replace it to grow in the future. Therefore, the Board will prioritise reviewing new possible opportunities in the market in 2025.

Given the pending agreement on the debt restructuring, the projections prepared by the Directors and review of future opportunities once the debt restructuring is completed, the accounts have been prepared on a going concern basis.

The ability of the Group to continue as a going concern is dependent on the finalization of the debt restructuring, and the cash flows generated from the interest in the Orlando field. In the event, that the Group is unable to continue to trade, significant downward adjustments would be required to the fair value of the Group's economic interest in the Orlando asset to present the value of these assets on a break-up basis.

2. GENERAL INFORMATION

P/F Atlantic Petroleum is a limited company incorporated and domiciled in the Faroe Islands and listed on NASDAQ OMX Copenhagen.

The principal activities of the Company and its subsidiaries (the Group) are oil and gas exploration, appraisal, development and production historically in the UK, Ireland, and the Faroe Islands.

The Annual and Consolidated Report and Accounts of the Group as at and for the year ended 31st December 2023 are available upon request from the Company's registered office at Lucas Debesargøta 8, P.O. Box 1228, FO-110 Tórshavn, Faroe Islands or at www.petroleum.fo.

This Condensed Consolidated Interim Report is presented in DKK.

3. STATEMENT OF COMPLIANCE

This Condensed Consolidated Interim Report has been prepared in accordance with International Financial Reporting Standards (IFRS) IAS 34 Interim Financial Reporting as adopted by the EU. It does not include all of the information required for full Annual Financial Statements and should be read in conjunction with the Consolidated Financial Statements of the Group as at and for the year ended 31st December 2024.

4. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied by the Group in this Condensed Consolidated Interim Report are the same as those applied by the Group in its Consolidated Financial Statements as at and for the year ended 31st December 2024.

5. Geographical segmental analysis

	3 months to 31st March	3 months to 31st March	Full year
DKK 1,000	2025	2024	2024
Revenues by origin:
United Kingdom	0	0	0
	0	0	0
Operating loss/profit by origin:
Faroe Islands	356	-318	-1,510
United Kingdom	-2,832	928	2,538
Norway	0	0	0
Other	-9	-9	-82
	-2,485	600	945

6. Cost of sales

	3 months to 31st March	3 months to 31st March	Full year
DKK 1,000	2025	2024	2024
Operating costs	0	0	0
Produced oil in inventory at market value	0	0	0
Amortisation and depreciation, PPE:
Oil and gas properties	0	0	0
Impairment	0	0	0
	0	0	0

7. Interest income & expense and finance gain & cost

	3 months to 31st March	3 months to 31st March	Full year
DKK 1,000	2025	2024	2024
Interest income and finance gain:
Short term deposits	0	0	0
Time Value	0	0	0
Unwinding of discount on decommissioning provision	0	0	0
Exchange differences	0	0	0
	0	0	0
Interest expense and other finance cost:
Bank loan and overdrafts	7	0	5
Creditors	0	-40	24
Time Value	0	0	0
Unwinding of discount on decommissioning provision	0	0	0
Others	0	0	1
Exchange differences	-192	855	3,345
	-186	819	3,376

8. Taxation

	3 months to 31st March	3 months to 31st March	Full year
DKK 1,000	2025	2024	2024
Current tax :
Tax repayable/(payable) in UK	0	0	0
Tax repayable/(payable) in NO	0	0	0
Tax repayable/(payable)	0	0	0
Total current tax	0	0	0
Deferred tax:
Deferred tax cost in UK	0	0	0
Deferred tax	0	0	0
Total deferred tax	0	0	0
Tax credit/tax on loss/profit on ordinary activities	0	0	0

9. Dividends

No interim dividend is proposed. (31st March 2024: DKK nil)

10. Intangible assets

	at 31st March	at 31st March	At 31st Dec
DKK 1,000	2025	2024	2024
Costs
At 1st January	12,260	12,260	12,260
Exchange movements	0	0	0
Additions/Adjustments	0	0	0
At end of period	12,260	12,260	12,260
Amortisation and depreciation
At 1st January	12,260	12,260	12,260
Exchange movements	0	0	0
Charge this period	0	0	0
At end of period	12,260	12,260	12,260
Net book value at end of period	0	0	0

11.	Oil and gas –			Intangible exploration and evaluation assets
-----	---------------	--	--	----------------------------------------------	--

	at 31st March	at 31st March	At 31st Dec
DKK 1,000	2025	2024	2024
Costs
At 1st January	0	0	0
Exchange movements	0	0	0
Additions	0	0	0
Disposal/relinquishment of licences	0	0	0
Explorations expenditures written off/sold	0	0	0
At end of period	0	0	0

12. Oil and gas – Tangible development and production assets

	at 31st March	at 31st March	At 31st Dec
DKK 1,000	2025	2024	2024
Costs
At 1st January	0	0	0
Exchange movements	0	0	0
Disposal/Additions	0	0	0
At end of period	0	0	0
Amortisation and depreciation
At 1st January	0	0	0
Exchange movements	0	0	0
Depreciation, charge	0	0	0
Impairment, charge	0	0	0
At end of period	0	0	0
Net book value at end of period	0	0	0

13. Property, plant and equipment assets

	at 31st March	at 31st March	At 31st Dec
DKK 1,000	2025	2024	2024
Costs
At 1st January	0	0	0
Exchange movements	0	0	0
Additions	0	0	0
At end of period	0	0	0
Amortisation and depreciation
At 1st January	0	0	0
Exchange movements	0	0	0
Charge this period	0	0	0
At end of period	0	0	0
Net book value at end of period	0	0	0

14. Trade and other receivables

All trade and other receivables are due within one year except for the Orlando deferred consideration DKK 10.2MM of which 5.2MM is expected to be due within one year.

The carrying values of the trade and other receivables are equal to their fair value as at the balance sheet date.

Under the Sale and Purchase Agreement regarding Orlando, APNS is due to receive deferred considerations equalling 2% of the sale proceeds from the first 5,000,000 barrels of Orlando petroleum and an amount equalling 4.35% of the Orlando petroleum in excess of the first 5,000,000 barrels.

The deferred consideration receivable on the Orlando field is currently valued at DKK 10.2MM.

Reserves are based on the information disclosed by the Operator of the Orlando field in April 2024, which disclose reserves at 1st January 2024.

Based on this, the reserves remaining at 31st March 2025 are estimated to be 1.2 MMBbl.

Production rates are based on a 34% decline profile. Production has been stable throughout 2023 and 2024. Production rates are expected to be 1,800 – 2,200 bopd for the remainder of the 2025.

The valuation is therefore based on a production of 2,000 bopd on average.

The expectation is that the Orlando field will continue to produce at stable rates in 2025.

Oil price is based on Brent crude futures.

Exchange rates are based on exchange rates at 31st March 2025.

15. Trade and other payables

All trade and other payables are due within one year. except for the bridge loan (DKK 7.56MM).

16. Earnings per share

	3 months	3 months
	to 31st March	to 31st March	Full year
DKK 1,000	2025	2024	2024
Basic
Profit/loss after tax	-2,299	-219	1,396
Weighted average number of shares	3,697,863	3,697,863	3,697,863
Earnings per share	-0.62	-0.06	0.38
Diluted
Profit/loss after tax	-2,299	-219	1,396
Weighted average number of shares	3,697,863	3,697,863	3,697,863
Earnings per share	-0.62	-0.06	0.38

The calculation of basic earnings per share is based on the profit or loss after tax and on the weighted average number of ordinary shares in issue during the period.

17. CAPITAL COMMITMENTS AND GUARANTEES AT 31st March 2025

P/F Atlantic Petroleum has provided a parent guarantee to the UK Department for Energy and Climate Change in connection with Atlantic Petroleum UK Limited assets in the UKCS:

• I. the parent will always provide necessary finance to enable Atlantic Petroleum UK Limited to fulfil its obligations in the UK area
• II. the parent will not alter Atlantic Petroleum UK Limited legal rights, so that the Company cannot fulfil its obligations
• III. the parent will undertake Atlantic Petroleum UK Limited financial obligations if the Company fails to do so

P/F Atlantic Petroleum has a senior secured loan agreement with P/F Betri Banki. The Company has offered the following security to lender in connection with the loan agreement:

• I. shares in Atlantic Petroleum UK Limited and Atlantic Petroleum North Sea Limited
• II. receivables from Atlantic Petroleum UK Limited
• III. charge over proceeds from insurance coverage

The Company has provided lender with a negative pledge and investment in new ventures shall be endorsed by the lender.

Atlantic Petroleum UK Limited had a loan facility at 31st March 2025 with the following bank: P/F Betri of DKK 56,8MM. P/F Atlantic Petroleum has provided a parent guarantee for this loan facility.

The Company has provided lender with a negative pledge and investment in new ventures shall be endorsed by the lender.

18. RELATED PARTY TRANSACTIONS

Intra-group related party transactions, which are eliminated on consolidation, are not required to be disclosed in accordance with IAS 24.

Atlantic Petroleum has a key management personnel service agreement with Grannnskoðarastovan Sp/f for at monthly fee of DKK 30.000. Grannskoðarastovan Sp/f has, as part of the agreement with the main creditors, written off DKK 0,68MM. Outstanding balance at 31st March 2025 is DKK 0,41MM,

CONTACTS

P/F Atlantic Petroleum

Lucas Debesargøta 8 P.O.Box 1228 FO-110 Tórshavn Faroe Islands Telephone +298 59 16 01 E-mail: petroleum@petroleum.fo www.petroleum.fo

VAT/Tax No. Faroes 475.653 Reg. No. Faroes 2695

SUBSIDIARIES

• Atlantic Petroleum UK Ltd
• Atlantic Petroleum North Sea Ltd
• Atlantic Petroleum (Ireland) Ltd

For subsidiary's contact details please see company website