Atlantic Petroleum P/F - Ársreikningur

Operating result for 3Q 2008 was DKK -4,364,804, which is in line with expectations.

Extract from the announcement in full length attached together with the Interim
Financial Statement for 3Q 2008.

Financial Statement of P/F Atlantic Petroleum
for the first nine months of 2008


Tórshavn, Faroe Islands 31st October 2008 - Atlantic Petroleum (OMX: FO-ATLA)
the international upstream oil and gas company, today announced its results for
the third quarter ending 30th September 2008. 


Wilhelm Petersen, Atlantic Petroleum's CEO, stated:
“During the third quarter we passed a significant milestone in Atlantic
Petroleum's history, when our first oilfield, Chestnut, came on stream. The
Chestnut Field is a very profitable investment for Atlantic Petroleum with
operational costs at around 15 USD/bbl (barrel), thus generating substantial
cash flow to the Company. During the third quarter we made a discovery with the
Blackbird exploration well and the development planning is ongoing. The results
from the second production well, called South Chestnut looks encouraging and a
conclusive announcement will be released shortly, as we are in the final phase
of testing the well. ” 

Highlights of 3Q 2008

•	The Chestnut Field produced first oil on 20th September, while the Ettrick
Field is progressing towards first oil in early 2009. 

•	Operating result for the first nine months of 2008 was DKK -13,923,671,
compared to DKK -44,263,021 for the first nine months of 2007. Operating result
for 3Q 2008 was DKK -4,364,804, compared to DKK -3,496,076 for 3Q 2007. This is
in line with the Company's expectations. 

•	Result after taxation for the first nine months of 2008 amounted to DKK
-35,179,979, compared to DKK -50,484,378 for the first nine months of 2007.
Profit after taxation for 3Q 2008 amounted to DKK -3,772,386, compared to a
loss of DKK -11,170,765 for the same period the year before. 

•	The Company's total shareholders' equity amounted to DKK 195,210,024 at the
end of September 2008. 

•	Cash and cash equivalents amounted to DKK 6,922,109 at the end of 3Q 2008.

Outlook for 2008

•	Operating profit for 2008 is expected to be DKK 5-10 million, before
deduction of unsuccessful exploration costs, and is based on the assumption of
the Company's expectations to offload four cargoes from the Chestnut Field in
2008, totalling approximately 135,000 barrels net to Atlantic Petroleum, with
an average oil price of 66 USD/bbl. 



Current operations, prospects and outlook for 2008

The overall outlook for Atlantic Petroleum is good as the Group's first
oilfield is on production. Even though oil prices have decreased significantly
lately, the Company still expect to generate strong cash flow from the Chestnut
Field. Production from the Chestnut Field is progressing as planned and the
second cargo is ready for being offloaded. The result from the South Chestnut
appraisal well will be announced shortly, but so far the results look
encouraging. The Ettrick development has been hit by delays to the arrival of
the vessel, but the Group are confident that production will commence early in
2009. 

As a consequence of the delay to production start-up of both the Chestnut and
Ettrick Fields, Atlantic Petroleum has managed to postpone some of the
exploration investments planned to take place in late 2008 and early 2009. 

In spite of the current difficult financial market conditions, Atlantic
Petroleum secured an additional bridge loan facility, which will enable the
company to carry on with planned business operations. Atlantic Petroleum is
still planning a share capital increase to support the funding of some
promising projects, which in the short term could be moved into a development
phase. These include the Blackbird discovery and Perth Field, in addition to
selected exploration projects. Further, in the medium term, Atlantic Petroleum
will evaluate interesting farm-in opportunities and potential acquisitions and
divestments. The Company also has an interesting portfolio in the Faroes which
will hopefully be successful. The Company is planning to apply in the 3rd
Faroese licensing round which closes in November 2008. 
P/F Atlantic Petroleum 	Telephone +298 350 100            Issued 31.10.2008
Gongin 9		         Fax +298 350 101
P.O.Box 1228 		petroleum@petroleum.fo 
FO-110 Tórshavn		www.petroleum.fo
Faroe Islands

Attachments:

3 quarter announcement 2008 31-10-2008.pdf

3q 2008 interim report 31-10-2008.pdf