Atlantic Petroleum P/F - Fyrirtækjafréttir

Operations update on the Chestnut Field

Tórshavn, Faroe Islands, 16th February 2009 - P/F Atlantic Petroleum (OMX:
FO-ATLA) the international upstream oil and gas company, today announces an
operations update on the Chestnut Field. 

The South Chestnut well has now been connected to the main Chestnut Field. This
new producer will increase the daily production significantly and imply only
marginal extra opex costs. 

The Chestnut Field was brought on stream on 20th September 2008 with a
horizontal production well, the 22/2a-11X, tied back to the Hummingbird FPSO.
By the 31st January 2009, this well had produced 1.4 million barrels of oil of
which 225,000 barrels are net to Atlantic Petroleum. This is an average daily
production rate of approximately 10,500 barrels, of which approximately 1,600
barrels is net to Atlantic Petroleum. Water injection started from the 22/2a-12
well on 24th December 2008. 

In the autumn of 2008, the South Chestnut field extension was successfully
appraised. The 22/2a-16Y well was completed across 64 ft of oil bearing sand
which production tested up to 9,000 boepd. The 22/2a-16Y well significantly
adds to the field reserves and is conservatively estimated to have increased
reserves net to Atlantic Petroleum from 1 MMBbls to 1.5 MMBbls. The success of
the South Chestnut extension gives the partnership confidence in finding
further upsides to the Chestnut Field as our understanding of the field
increases. 

Production was stopped on 7th February to facilitate hook up of the new
producer to the FPSO. This work is now completed and production from the
22/2a-11X has resumed. Final subsea work is expected to be completed within the
next two weeks, after which the 22/2a-16Y well will be brought on stream, with
a significant increase in daily production and only marginal extra operating
costs. 

The Hummingbird FPSO, the second of the SS300 type in operation worldwide, and
the first in the North Sea, has performed as expected, with no weather downtime
and only minor technical problems since first oil. 

For Atlantic Petroleum, the Chestnut Field is very important. It is satisfying
that a field discovered in 1986 and for a long time considered to be a marginal
field, has been developed though innovative concepts, despite low oil prices,
and is the first cash generator for the company. 

Further Details
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 is, together with
other information about Atlantic Petroleum, available on the Company's website:
www.petroleum.fo 

Announcement no. 03/2009		                             Issued 16-02-2009

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