Atlantic Petroleum P/F - Company Announcement

Completes fully subscribed rights issue

Not to be distributed in the US, Canada, Australia or Japan

Atlantic Petroleum completes fully subscribed rights issue

Tórshavn, Faroe Islands, 29th October 2009 - P/F Atlantic Petroleum (OMX:
FO-ATLA), the international upstream oil and gas company, today announces that
the offering of new shares with pre-emptive rights to the Company's existing
shareholders has been fully subscribed. Hence, a total of 1,500,973 new shares
will be issued at a subscription price of DKK 125 per share, corresponding to
gross proceeds to Atlantic Petroleum of DKK 188 million. As a consequence, the
Company will not utilise any of the binding subscription undertakings, which
were to become active if sufficient pre-emptive rights were not exercised. 

The new shares will have the same rights as Atlantic Petroleum's existing
shares and will be eligible for dividends as from the date the capital increase
is registered with the Faroese Company Registration, which is expected to take
place on 2nd November 2009. 

Following registration of the 1,500,973 new shares each with a nominal value of
DKK 100, Atlantic Petroleum's nominal share capital amounts to DKK 262,670,300,
consisting of 2,626,703 shares each with a nominal value of DKK 100 or
multiples hereof. 

The new shares are expected to be admitted for listing on NASDAQ OMX Copenhagen
A/S and NASDAQ OMX Iceland hf. on Tuesday 3rd November 2009 under the existing
ISIN code for the Company's shares: FO000A0DN9X4. 

Wilhelm E. Petersen CEO of the Atlantic Petroleum Group commented:
“We are delighted with the full subscription of our rights issue and the
implicit sign of confidence we receive from our shareholders and the stock
market in general. The net proceeds from the offering and the subsequent
strengthening of the Company's capital structure, provides an excellent
platform for Atlantic Petroleum's further development. With two oil fields
already in production, and two further oil fields expected to come into
production over the coming two to three years, we are well positioned to create
value for our shareholders over the coming years.” 



Use of net proceeds
As announced in the Company's prospectus, dated 1st October 2009, Atlantic
Petroleum will use the net proceeds from the offering to strengthen the
Company's financial position and thereby to establish a stronger financial
basis for the future development of Atlantic Petroleum. Out of the net
proceeds, 172 million will be used to make repayments under the Company's
loans. 

Outlook for 2009
For the financial year ending 31st December 2009 the Company maintains its
expectation of a total production of 700,000 to 740,000 barrels net. With an
average oil price estimate of USD 70 per barrel for the fourth quarter of 2009
and average operating expenditures of around USD 25 per barrel, Atlantic
Petroleum expects an operating profit (EBIT), before deduction of unsuccessful
exploration/appraisal costs, of around DKK 40-50 million for 2009. This
forecast is based on estimated exchange rates of GBP/DKK 8.06 and USD/DKK 5.08. 

Based on the above assumptions, the Company maintains its expectation of cash
flow from operating activities in excess of DKK 100 million in 2009. 

Handelsbanken Capital Markets acted as exclusive financial advisor to the
Company in connection with the rights issue, with Eik Banki acting as
co-manager. 

Further Details
Further details can be obtained from Wilhelm Petersen, CEO, tel +298 350100
(wilhelmp@petroleum.fo) or Teitur Samuelsen, Financial Manager, tel +298 350100
(teiturs@petroleum.fo). This announcement will be available, together with
other information about Atlantic Petroleum, on the Company's website:
www.petroleum.fo 

Forward looking statement
This announcement contains forward-looking statements regarding the Company's
future development and financial performance and other statements which are not
historical facts. Such statements are made on the basis of assumptions and
expectations which, to the best of the company's knowledge, are reasonable and
well-founded at this time, but which may prove to be erroneous. The Company's
operations are characterised by the fact that its actual results may deviate
significantly from those described herein as anticipated, believed, estimated
or expected. The Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events, or otherwise, unless required by law. 

Atlantic Petroleum 
Atlantic Petroleum is a Faroese independent exploration and production (E&P)
company with oil and gas interests in the North Sea, East Irish Sea and Celtic
Sea and on the Faroese Continental Shelf. The Company has interests in 15
licences containing 28 fields, discoveries, prospects or leads. Furthermore,
Atlantic Petroleum has partnerships with 17 international oil companies
operating in North West Europe. The objective of Atlantic Petroleum is to
develop offshore oil and gas potential in North West Europe on a commercial
basis, and presently the Company engages in activities ranging from
exploration, through appraisal, to development and production. Atlantic
Petroleum's shares are listed on both NASDAQ OMX Iceland and NASDAQ OMX
Copenhagen. 

Announcement  no. 42/2009		          Issued 29-10-2009


P/F Atlantic Petroleum 		          Telephone +298 350 100
Gongin 9		                            Fax +298 350 101
P.O. Box 1228		                   Website: www.petroleum.fo
FO-110 Tórshavn 		                   Mail: petroleum@petroleum.fo