Atlantic Petroleum P/F - Annual report/ annual accounts

Annual Consolidated Financial Statements of P/F Atlantic Petroleum for 2007 and reserve report

Extract from the announcement in full length attached.

Annual Consolidated Financial Statements of P/F Atlantic Petroleum for 2007

The Annual Consolidated Profit after taxation for 2007 was a loss amounting to
DKK  -76,073,976 and for the 4Q 2007 a loss amounting to DKK -25,589,597.

Tórshavn, Faroe Islands 15th February 2008 - Atlantic Petroleum (OMX: FO-ATLA)
the international upstream oil and gas company, today announced the full year
results for 2007 and the fourth quarter 2007 result ending 31st December 2007. 

Full Year and 4Q Highlights

• P/F Atlantic Petroleum's consolidated profit after taxation for 2007 amounted
to DKK -76,073,976, (2006: DKK -8,102,710). The consolidated profit after
taxation for 4Q of 2007 amounted to DKK -25,589,597 (4Q 2006: DKK -1,464,102). 
• The consolidated result before taxation for 2007 was DKK -76,071,551, (2006:
DKK -8,088,880). The consolidated result before taxation for 4Q of 2007 was DKK
-25,587,172, (2006: DKK-1,473,975). 
• The consolidated operating profit for 2007 was DKK -50,329,749, (2006: DKK
-11,466,685). The consolidated operating profit for 4Q 2007 was DKK -6,066,727,
(2006 Q4: DKK -3,683,380). 
• The Company's consolidated total assets amounted to DKK 410,859,512 at the
end of 2007 (2006: DKK 361,416,965). 
• The Company's total shareholders' equity amounted to DKK 227,152,010 at the
end of 2007, (2006: DKK 296,676,942). 
• The loss for 2007 after taxation is higher than anticipated in the 3Q
announcement, where it was estimated to approximately DKK 55 million. The
higher loss is primarily due to unsettled exchange rate differences towards £
Sterling, which is the currency that the inter company balances are nominated
in. Investors should note that the exchange rate loss of approximately DKK 28
million has no cash impact on the group. 
• First oil from Chestnut and Ettrick is 2nd quarter and in mid 2008
respectively and Atlantic Petroleum expects a result after tax for 2008 of
around DKK 100 million before deduction of unsuccessful exploration costs and
exchange differences. 
• Atlantic Petroleum's investments in exploration/appraisal activities in 2008
are budgeted at approximately DKK 95 million. These investments include the
drilling of five exploration/appraisal wells and the maturing of other
prospects. 
• Atlantic Petroleum's investments in field developments in 2008 are estimated
to be approximately DKK 120 million and covers developments related to the
Chestnut, Ettrick, North Ettrick and Jarvis fields. 
• In connection with the annual financial statement Atlantic Petroleum
requested Fugro Robertson Limited to estimate the Petroleum Reserves and
Resources of the Atlantic Petroleum Group. The evaluation is at 1st January
2008 and is based on technical data and information available and provided by
Atlantic Petroleum up to 7th December 2007. Atlantic Petroleum's reserves have
been estimated to the following: P50 Petroleum reserves 5.1 MMboe, P50
Contingent resources 4.0 MMboe, P50 Risked Prospective reserves 4.7. Total P50
Petroleum reserves and Resources attributable to Atlantic Petroleum at 1st
January 2008 are 13.8 MMboe. The Hook Head discovery has not been included in
the mentioned reserves above. The volume of oil in place is estimated to be 89
MMstb, with a range from 38 to 261 MMstb. Further appraisal is needed to
estimate the recoverable reserves. The licences in the Faroes (013,014 and 006)
are not included in the reserves disclosed above. (The reserve report is
attached to this announcement) 


Wilhelm Petersen, P/F Atlantic Petroleum's CEO stated: 

“In 2007 we continued to realise our growth strategy. Building on our efforts
from 2006, when we managed to fund the Company for further expansion, we
continued to develop our Chestnut and Ettrick fields and drilled two
exploration/appraisal wells. One of these wells, the one on the Hook Head
discovery in the Celtic sea, was a success. We farmed into further exploration
opportunities that enable the Company to grow further now and in the future.
Also, we farmed into a strategic asset - the Marten discovery - which is
situated adjacent to the Ettrick field. In 2008 we will follow our growth
strategy and develop the Company to the benefit of our shareholders.” 

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:

4 quarter 2007 15-02-2008.pdf

annual consolidated report and accounts 2007.pdf

ap reserve report 120208 final version 1 04.pdf