Atlantic Petroleum P/F - Fyrirtækjafréttir

Atlantic Petroleum announces farm-ins to UK P1100 Polecat discovery and P1610 & P1766 containing the Magnolia prospect

Tórshavn, Faroe Islands, 2012-09-25 16:28 CEST (GLOBE NEWSWIRE) -- Atlantic
Petroleum (OMX: FO-ATLA) today announces that the Group has reached agreements
to acquire equity in two separate licences subject to regulatory consent, both
of which have wells proposed to spud within the next six months. 

Agreement has been reached to acquire a 20% stake in P1610, Block 13/23a and
P1766, Block 13/22d containing the Magnolia prospect in return for carrying a
share of the cost of the initial exploration well. The equity was acquired from
Summit Petroleum. 

The Magnolia prospect is a Lower Cretaceous stratigraphic pinchout play. The
licences are located to the south and south east of the producing Captain Field
in the Moray Firth and are also close to the Blake and Ross Fields. 

A rig has been contracted by the operator Dana Petroleum and the well is
expected to be spudded early next year. 

A further agreement has been reached to acquire a 20% stake in P1100, Blocks
20/4a and 20/9a containing the Polecat discovery in return for carrying a share
of the cost of an appraisal well. The equity was acquired from Nexen Petroleum
U.K. Limited. 

The initial Polecat discovery was drilled in 2005 when oil was discovered in
the 20/4a-8 well and was successfully appraised by the 20/4a-9 well in 2010.
The reservoir is Upper Jurassic Buzzard equivalent sandstones. The blocks lie
to the east and south east of Atlantic Petroleum's Ettrick & Blackbird
producing assets which are operated by Nexen Petroleum U.K. Limited. 

Operator of the licence, Nexen, plans to drill a further appraisal well in
November 2012, after which a decision will be made on whether to develop the
discovery. 

Ben Arabo, CEO, commented:

“With the addition of Polecat and Magnolia to the exploration and appraisal
programme, Atlantic Petroleum will be participating in at least five
exploration and appraisal wells in the UK North Sea and the Faroes over a 12
month period, making the Group one of the most active players in the area. The
addition of the Magnolia and Polecat wells is another milestone in expanding
Atlantic Petroleum's exploration and appraisal efforts to achieve a step change
growth in shareholder value.” 

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. 25/2012

Issued 25-09-2012


         P/F Atlantic Petroleum
         P.O. Box 1228
         Yviri við Strond 4
         FO-110 Tórshavn
         Faroe Islands
         Telephone +298 350 100
         Fax +298 350 101
         Website: www.petroleum.fo
         E-mail: petroleum@petroleum.fo