Atlantic Petroleum P/F - Fyrirtækjafréttir

Impairment of Celtic Sea licence SEL 2/07

Tórshavn, Faroe Islands, 17th July 2009 - P/F Atlantic Petroleum (OMX: FO-ATLA)
the international upstream oil and gas company, announces impairment in
connection with its Celtic Sea licence SEL 2/07, Ireland. 

Following the drilling of the Hook Head 50/11-4 and Dunmore 50/6-4 wells in
July to October last year a number of studies have been completed by the
operator. The outcome of the studies suggests that, due to reservoir and oil
quality issues, the potential commerciality of these assets is more uncertain
than before. Further, due to uncertainty related to sufficient volume of the
Dunmore Jurassic carbonate reservoir, which encountered hydrocarbon shows in an
approximately 20 feet thick section, the company has decided to write-off costs
of approximately €12 million in impairments. The write-off will not have any
cash effect on the company. 

The impairment does not impact on 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. Furthermore, this announcement
does not change the forecast for 2009, announced in the 1Q announcement
(announcement no 09/2009), as the estimate for the year is based on EBIT before
the deduction of unsuccessful exploration/appraisal costs. 

Wilhelm Petersen, CEO, commented:
“Even though Hook Head and Dunmore are not key assets in our portfolio, the
results are disappointing. The Company is now looking forward to producing
first oil from the Ettrick field during the summer. Ettrick will be our second
producing field.” 

Further Details
Further details can be obtained from Wilhelm Petersen, Managing Director, 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 

Announcement  no. 19/2009		      Issued 17-07-2009


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