Atlantic Petroleum P/F - Financial Statement Release

The Interim Consolidated profit after taxation for 1Q of 2008 was a loss amounting to DKK -34,220,830 (1Q 2007: -4,102,082).

Extract from the announcement in full length attached.

The Interim Consolidated profit after taxation for 1Q of 2008 was a loss
amounting to DKK -34,220,830, compared to a loss of -4,102,082 for 1Q 2007. 

Tórshavn, Faroe Islands 23 May 2008 - Atlantic Petroleum (OMX: FO-ATLA) the
international upstream oil and gas company, today announced results for the
first quarter ending 31 March 2008. 

1Q Highlights

P/F Atlantic Petroleum's consolidated profit after taxation for 1Q of 2008
amounted to DKK -34,220,830, compared to DKK -4,102,082 for 1Q of 2007. 

The consolidated result before taxation for 1Q of 2008 was DKK -34,220,830,
compared to DKK -4,102,082 for 1Q of 2007. 

The consolidated operating profit for 1Q of 2008 was DKK -4,951,456, compared
to DKK -3,073,353 for 1Q of 2007. 

The Company's consolidated total assets amounted to DKK 409,941,344 at the end
of 1Q 2008, compared to DKK 410,859,512 at the year end 2007. 

The Company's total shareholders' equity amounted to DKK 198,394,639 at the end
of 1Q 2008, compared to DKK 227,152,011 at the year end 2007. 

The operating results are in line with our expectations, but the loss after
taxation is higher than anticipated due to unsettled exchange rate differences.
The unsettled exchange rate loss of approximately DKK 27 million has no cash
flow impact on the group. The loss is due to the decrease in the £
Sterling/DKK, which is the currency that the inter company balances are
nominated in. On the other hand it is an advantage for Atlantic Petroleum that
the £ Sterling decreases compared to DKK, as lot of Atlantic Petroleum's future
capital expenditures and operating costs are nominated in £ Sterling. 

First oil from the Chestnut Field is still expected during the third quarter of
2008, with a ‘stretch' target end second quarter and from Ettrick during the
second half of 2008, compared to previously mid 2008. The slight delay in
Ettrick production is due to the delayed sail out of the FPSO from Singapore. 

The realisation of the Groups growth strategy will continue in 2008, as we plan
to drill five exploration/appraisal wells this year or early 2009. In addition
to these wells, Atlantic Petroleum and its partners plans to drill further
development wells on the Ettrick Field (Jarvis and North Ettrick) and to the
south of the Chestnut Field. These additional wells will add significant
reserves to the fields, increase production and extend the field lifetime.
Atlantic Petroleum, as well as other oil and gas companies, has however faced
delays and cost overruns on its projects due to the high demand in the industry
for services. Therefore further delays and cost overruns may occur. 

Due to the delay of first production from the Chestnut and Ettrick fields, part
of the the cash flow from these two fields is pushed into 2009 and subsequent
years. Consequently the operating profit for 2008 is expected to amount to DKK
35 million, against a previous estimated operating profit of DKK 115 million.
These amounts are before deduction of unsuccessful exploration costs and based
on an oilprice of 100$/bbl. The outcome of 2008 is still very uncertain as 2008
will be the first year with income from oil and gas production and therefore it
should not surprise investors if there are some interruptions in production
during the start-up phases of the fields. Also the result is dependent on the
oil price, the exact date of commencement of the oil production from the two
fields, the USD/DKK exchange rate, incorporation of the tax asset from UK as
per end 1 Q 2008 of approx DKK 55 million plus other factors. 

Wilhelm Petersen, P/F Atlantic Petroleum's CEO: 
“The result from operating activities is as expected, with no field in
production as yet. The Company‘s main focus in the last quarter has been on
getting our two fields Chestnut and Ettrick closer to production and we expect
the Chestnut Field to commence production in the 3rd quarter of 2008 and the
Ettrick Field to start production during the second half of 2008. The coming
months will be very challenging for Atlantic Petroleum with two fields
commencing production, the result of the ongoing drilling of the Blackbird
exploration well and the drilling of the two appraisal wells in Ireland.” 
P/F Atlantic Petroleum 		 Telephone +298 350 100           Issued 23.05.2008
Gongin 9		                   Fax +298 350 101
P.O.Box 1228 		          petroleum@petroleum.fo 
Fo-110 Tórshavn		          www.petroleum.fo
Faroe Islands

Attachments:

23-05 2008 1 q 2008 announcement.pdf

1q 2008 interim report 23-05-2008.pdf