Atlantic Petroleum P/F - Financial Statement Release

Forecast for 2009 unchanged and positive net cash flow from operating activities of DKK 28.1MM for 1H 2009

Forecast for 2009 unchanged and positive net cash flow from operating
activities of DKK 28.1MM for 1H 2009 of which DKK 25.4MM relates to 2Q 2009.
Operating loss for 1H 2009 of DKK -112.9MM after non cash impairments of DKK
113.9MM 


Tórshavn, Faroe Islands 21st August 2009 - Atlantic Petroleum (OMX: FO-ATLA)
the international upstream oil and gas company, today announced its results for
1H 2009. This company announcement should be read in conjunction with Atlantic
Petroleum's Interim Consolidated Financial Statement attached to this
announcement. 


Wilhelm Petersen, Atlantic Petroleum's CEO, stated:
“We are pleased to announce the unchanged forecast for 2009 and the results for
2Q for Atlantic Petroleum. Of particular note is the positive cash flow
generated by our operating activities. With the additional production from the
now on stream Ettrick field, increased oil prices and the planned share capital
increase, we will focus on the company's overall strategy of becoming a
mid-sized oil and gas company with activities in North West Europe. To achieve
this goal we will optimise the development options in the AP's portfolio and be
actively engaged in seeking new opportunities to grow the company. 

Highlights

Operational

•	Total production in 1H 2009 was 256,896 bbl corresponding to an average
production of 1,419 bopd (barrels of oil per day). The production in 2Q 2009
amounted to 137,140 bbl (1Q 2009: 119,756 bbl), corresponding to an average of
1,507 bopd (1Q 2009: 1,330 bbl) net to Atlantic Petroleum. Production in 1H
2009 was related to the Chestnut field including South Chestnut, which has
performed as expected. Chestnut South was tied in to the Hummingbird platform
on the Chestnut field during 1Q 2009. 

•	The Ettrick field commenced production in mid-August 2009 and is expected to
add approximately 1,650 boepd (barrels of oil equivalents per day) net to
Atlantic Petroleum's production and thus more than double the production rates
. 

•	In June the Crosby 110/14d-8 exploration well was drilled on UK licence P099
in the East Irish Sea Basin with the Ensco 92 jack-up rig. The well was plugged
and abandoned as a dry well. The well was drilled to a total depth of 4,572
feet MD. The Triassic Sherwood Sandstone reservoir was encountered but proved
to be water wet. Accordingly the investments in the Crosby well and the
investments in West Lennox were written off as West Lennox was dependent on
success on Crosby. 

•	Following the drilling of the Hook Head 50/11-4 and Dunmore 50/6-4 wells in
July to October 2008 a number of studies have been completed by the operator.
The outcome of the studies suggests that the potential commerciality on these
assets is more uncertain than before. Accordingly the investments have been
written off. The impairment does not impact the companies booked resources, as
the Competent Persons Report issued by Fugro on 1st January 2009 does not have
resources associated with Hook Head or Dunmore. Challenger Minerals has
withdrawn from the Irish licences and accordingly, Atlantic Petroleum's
interest in Standard Exploration Licence 2/07 and Standard Exploration Licence
3/07 has increased from 13.4304% to 18.333%. The changes in the participating
interests are subject to government authority's approval. 

•	Atlantic Petroleum and its partners StaoilHydro, DONG Energy and Faroe
Petroleum have completed the acquisition of seismic data on Faroese licence
016. The seismic data will now be analysed to mature the structure. 

•	Atlantic Petroleum's interest of 8.27% in UK P317 licence, which includes the
Blackbird discovery, remains unchanged as a back-in option from a previous
owner in the UK Licence P317, has lapsed. 



Financial 

•	Revenues of DKK 50.0MM in 2Q 2009 (2Q 2008: DKK 0MM) and DKK 76.6MM in 1H
2009 (1H 2008: DKK 0MM). Average realised oil price increased to 56.3 USD/bbl
in 2Q 2009 from 38 USD/bbl in 1Q 2009. The average realised oil price for 1H
2009 was 48.5 USD/bbl. 

•	Gross profit of DKK 15.2MM in 2Q 2009 (2Q 2008: DKK 0MM) and DKK 11.0MM in 1H
2009 (1H 2008: DKK 0MM). 

•	Impairments of DKK 108.1MM in 2Q 2009 (2Q 2008: DKK 0.2MM) and DKK 113.9MM in
1H 2009 (1H 2008: DKK 0.3MM) related to the Irish licences, the Crosby and West
Lennox licences. The impairments have no cash flow effect. 

•	Operating profit (EBIT) of DKK -97.5MM in 2Q 2009 (2Q 2008: DKK -4.6MM) and
DKK -112.9MM in 1H 2009 (1H 2008: DKK -9.6MM). 

•	Profit before taxation of DKK -56.9MM in 2Q 2009 (2Q 2008: DKK 2.8MM) and DKK
-48.2MM in 1H 2009 (1H 2008: DKK -31.4MM). 

•	Net cash flow from operating activities in 1H 2009 of DKK 28.1MM (1H 2008:
DKK -11.1MM). 

•	Total assets of DKK 683.0 MM (At year end 2008: 642.9 MM)

•	Total shareholder's equity of DKK 123.2MM (at year end 2008: 166.8MM)

•	The repayment of the bridge loans has been extended from 31st July 2009 and
31st December 2009 to 31st December 2010 or earlier, subject to certain
conditions including the completion of a proposed share capital increase and/or
the securing of a senior loan facility. 

2009 Outlook


Operational

•	Production is expected to be in the range of 3,200 to 3,600 boepd with
production from Ettrick including Jarvis and Chestnut and thus more than double
the production. 

•	Slight downgrade of total estimated production in 2009 primarily due to
delayed production start-up from Ettrick. Estimated total production in the
range of 725,000 to 825,000 barrels net. 

•	Optimize the production on Ettrick prior to drilling additional development
wells. 

•	The Blackbird discovery and other potential tie backs to Ettrick will be
evaluated. 

•	The Perth field will be brought closer to development.

Financial 

•	EBIT is unchanged and expected to reach DKK 50-60MM for 2009 before deduction
of unsuccessful exploration/appraisal costs. 

•	The production in 2009 is estimated to be slightly lower than previously
forecasted due to later start-up of production from the Ettrick field than
anticipated. The production is now estimated to be in the range of 725,000 to
825,000 barrels net to Atlantic Petroleum compared to previously
800,000-900,000 barrels. 
The decrease in the estimated production will be offset by higher estimated oil
prices. The current spot USD and GBP exchange rates are assumed. The estimated
oil price for the second half of 2009 is 72 USD/bbl, approximately equal to the
average forward oil price curve for the rest of 2009. This gives an average oil
price of 64 USD/bbl for 2009. The previously estimated figure was based on an
average oil price of 53-54 USD/bbl. 

•	Based on the assumption above, we still expect a cash flow from the operating
activities in excess of DKK 100MM in 2009. 

•	Investments in exploration and appraisal activities of approximately DKK 7MM
for the remainder of 2009. 

•	Investments in field developments estimated to approximately DKK 25-30MM for
the remainder of 2009 depending on the timing of further development drilling
on Ettrick. 

•	Announcement of a share capital increase.


Further details can be obtained from Wilhelm Petersen, Managing Director, tel
+298 350 100 (wilhelmp@petroleum.fo) or Teitur Samuelsen, Financial Manager,
tel +298 350 100 (teiturs@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 e-mail newsletter. 

Announcement no 21/2009		                Issued 21.08.2009

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

Attachments:

2q 2009 interim report 30-06-2009.pdf