Atlantic Petroleum P/F - Ársreikningur

Positive operating profit and strong cash flow in the period.

Positive operating profit and strong cash flow in the period. The Ettrick Field
is now on stream and a DKK 188MM share capital increase successfully completed.
Loss after tax of DKK 33.4MM in 3Q and loss of DKK 65.8 for the first nine
months of 2009 after impairments of DKK 112.6MM. Tórshavn, Faroe Islands 06th November 2009 - Atlantic Petroleum (OMX: FO-ATLA)
the international upstream oil and gas company, today announced its results for
the first nine months 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 result for 3Q 2009 with positive operating
profit and strong cash-flow. We have made substantial progress in line with our
strategy in the passed quarter by bringing our second and largest field Ettrick
on stream and strengthened the balance sheet by a successfully completed rights
issue ”. 

Highlights

Operational

•	Atlantic Petroleum produced in 3Q 2009 186,339 bbls corresponding to 2,025
bbls per day on average for the period. The first nine months of 2009 the
production amounted to 445,251 bbls corresponding to 1,630 bbls per day. In
these figures the Ettrick field contributes from 15th August 2009. 

•	The Chestnut field continues to perform well and production in 3Q amounts to
some 129,974 bbls corresponding to an average production rate of 1,412 bopd net
to Atlantic Petroleum. 

•	The Ettrick field commenced production on 15th August 2009 and has been
flowing at rates of 6,000 to 27,500 bopd (net 496 to 2,274 bopd to Atlantic
Petroleum). In 3Q the production was some 56,365 bbls corresponding to an
average production rate of 612 bopd net to Atlantic Petroleum, however since
first oil on the 15th August the average daily production has been 1,225 bopd.
Production has been constrained due to ongoing commissioning of the gas export
system. Gas export via the SAGE pipeline commenced 3rd October 2009 

•	Atlantic Petroleum and its partners Statoil, DONG Energy and Faroe Petroleum
have completed the acquisition of seismic data on Faroese Licence 016. The
seismic data is currently being processed, which once completed will be
interpreted to evaluate the prospectivity. 

•	In July the company announced impairment of Celtic Sea licence SEL 2/07.
Following the drilling of the Hook Head 50/11-4 and Dunmore 50/6-4 wells in
2008 a number of studies have been completed by the operator. The outcome of
the studies suggests that due to reservoir and oil quality issues in the Hook
Head accumulation and the uncertainty related to sufficient volumes in the
Dunmore Jurassic carbonate reservoir, the potential commerciality of these
assets is more uncertain than before. 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. 


Financial 

•	Revenues of DKK 60.7MM in 3Q 2009 (3Q 2008: DKK 0MM) and DKK 137.3MM for the
first nine months of 2009 (9 months 2008: DKK 0MM). Average realised oil price
increased to 68.33 USD/bbl in 3Q 2009 from 56.3 USD/bbl in 2Q 2009 and 38
USD/bbl in 1Q 2009. The average realised oil price for the first nine months of
2009 was 55.9 USD/bbl. 

•	Gross profit of DKK 13.1MM in 3Q 2009 (3Q 2008: DKK 0MM) and DKK 24.1MM for
the first nine months of 2009 (9 months 2008: DKK 0MM). 

•	Exploration costs are positive by DKK 1.3MM due to adjustments in 3Q 2009.
For the first nine months exploration costs amounted to DKK -112.6 (9 months
2008: DKK -0.3MM) The exploration costs relate to impairments of the Irish
licences and the Crosby and West Lennox licences. The impairments have no cash
flow effect. 

•	Operating profit (EBIT) of DKK 9.9MM in 3Q 2009 (3Q 2008: DKK -4.4MM) and DKK
-102.9MM for the first nine months of 2009 (9 months 2008: DKK -13.9MM). 

•	Profit before taxation of DKK -36.8MM in 3Q 2009 (3Q 2008: DKK -3.8MM) and
DKK -85.0MM for the first nine months of 2009 (9 months 2008: DKK -35.2MM). 

•	Net cash flow from operating activities for the first nine months of 2009 of
DKK 35.8MM (9 months 2008: DKK    -15.9MM). 

•	Total assets of DKK 655.3 MM (At year end 2008: DKK 642.9 MM)

•	Total shareholder's equity of DKK 91.8MM (At year end 2008: DKK 166.8MM)

•	Atlantic Petroleum completed a fully subscribed rights issue on the 29th
October 2009. Hence, a total of 1,500,973 new shares were issued at a
subscription price of DKK 125 per share, corresponding to gross proceeds to
Atlantic Petroleum of DKK 188 million. Non of the binding subscription
undertakings became effective as all pre-emptive rights were exercised. The new
shares have the same rights as Atlantic Petroleum's existing shares and are
eligible for dividends from the date the capital increase was registered with
the Faroese Company Registration. Atlantic Petroleum's nominal share capital
amounts now to DKK 262,670,300, consisting of 2,626,703 shares each with a
nominal value of DKK 100 or multiples hereof. 

•	On the 27th September the company announced that it had agreed certain
amendments to the terms of the loan extension announced on 9th June 2009 with
its lenders. The agreed amendments came into force upon completion of the
capital increase. The due date of the loans remains at 31st December 2010.
However the lenders have stated to the Company that they will look positively
at entering into negotiations regarding a possible extension of the final
repayment date for the remaining loans. Upon the implementation of the
amendment, a number of the covenants earlier undertaken by the Company in the
refinancing agreement of 9th June 2009 have ceased, including the term allowing
the lenders to call in the loans if the refinancing of the Company has not made
material progress within 6 to 9 months. 



2009 Outlook


Operational
•	Production is expected to be around 3,000 boepd net to Atlantic Petroleum
from the Ettrick and Chestnut fields combined. 

•	The commissioning of the Gas Exporting system on the Aoka Mizu production
vessel on the Ettrick field continues to cause delayed production and
consequently targets for the month of October was not met. However, the
forecasted total production at year end remains within the previously announced
range between 700,000 and 740,000 boe, albeit most likely at the lower end of
the range. 

•	Further development drilling on the Ettrick field.

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

•	The Perth field to be brought closer to development.

Financial 

•	As a consequence of the commissioning causing delayed production on Ettrick,
the estimated EBIT for 2009 will be at the lover end of the previously
estimated DKK 40-50MM, before deduction of unsuccessful exploration/appraisal
costs. This is based on current oil price and exchange rates. The cash flow
from the operating activities is therefore also estimated to be slightly below
the targeted DKK 100MM in 2009. 

•	Investments in exploration and appraisal activities are expected to be minor
for the remainder of 2009. 

•	Investments in field developments estimated to approximately DKK 15-20MM for
the remainder of 2009 depending on the timing of further development drilling
on Ettrick. 

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 45/2009		             Issued 06.11.2009

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:

3q 2009 interim report 30-09-2009.pdf