Atlantic Petroleum P/F — Remuneration Information 2014

Aug 29, 2014

Grant of Options

Grant of Options

Tórshavn, Faroe Islands, 2014-08-29 18:20 CEST (GLOBE NEWSWIRE) --

Atlantic Petroleum (NASDAQ OMX: ATLA DKK & Oslo Stock Exchange: ATLA NOK)

announces the grant of nil-cost options over ordinary shares in the Company

under the Atlantic Petroleum Long Term Incentive Plan which was adopted by the

Company on 24 March 2012 (the ?Plan?).

The options are capable of vesting on 1 April 2017 subject to continued

employment and meeting stretching corporate performance conditions. Given the

delay in granting the 2014 LTIP awards, the vesting date has been set at 1

April 2017 such that the awards vest in line with the normal LTIP cycle. The

performance period over which performance is determined will begin on 1 April

2014 such that the vesting of awards will be tested over a three year period.

The long-term incentive awards form part of the Company?s remuneration strategy

to provide a competitive remuneration package that rewards Directors and

employees fairly and responsibly for their contributions and aims to deliver

superior remuneration for superior performance.

We set out the two corporate performance conditions below:

Comparative Total Shareholder Return (?TSR?):

The Company?s comparative TSR is compared to a comparator group of quoted oil

and gas exploration and production companies and:

-- 25% of the option will vest for median performance against the comparator

group;

-- 100% of the option will vest for upper quartile performance against the

comparator group; and

-- The option will vest on a straight-line basis for TSR performance between

these levels.

Share price multiplier:

The vesting level achieved under the comparative TSR element can be multiplied

upwards if the Company achieves absolute share price growth of more than 15%

p.a. over the three year performance period. A maximum multiplier of three

times can be achieved for 45% p.a. absolute share price growth and awards vest

on a straight-line basis between these share price performance levels. The

base price for the share price multiplier will be 125 DKK per share, broadly in

line with the share price as at the initial public offering on the Oslo Bors on

10 December 2013.

The options granted to the participants are as follows:

Name Number of Plan Shares

-------------------------------------------------

Ben Arabo 8,576

-------------------------------------------------

Key Employees & Management 15,165

-------------------------------------------------

For the CEO, Ben Arabo, the options granted are equal to 67% of the annual base

salary.

The option was calculated by reference to a price of 125 DKK per share.

The number of shares shown above represents the figure that may be acquired by

the participants, if the Company?s TSR is in the upper quartile TSR of its

comparator group. Where the Company?s absolute share price growth is 45% p.a.

or more over the performance period, the participants would be entitled to

exercise their option in respect of three times as many shares as stated above.

Where the Company?s absolute share price growth is between 15% p.a and 45% p.a

over the performance period, the participants would be entitles to exercise

their option in respect of a multiplier which is calculated on a straight line

basis between 15% p.a. (1x multiplier) and 45% p.a (3x multipler).

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 45 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 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.37/2014

Issued 29-08-2014