Atlantic Petroleum P/F - Financial Statement Release

Gross profit of DKK 90.8MM 1H 2013

Atlantic Petroleum maintains its 2013 guidance for production and EBITDAX

Tórshavn, Faroe Islands, 2013-08-28 11:24 CEST (GLOBE NEWSWIRE) -- P/F Atlantic
Petroleum (OMX: FO-ATLA) today announces its results for the first six months
of 2013. This company announcement should be read in conjunction with Atlantic
Petroleum's Condensed Consolidated Interim Report attached to this
announcement. 

Ben Arabo, Atlantic Petroleum's CEO, stated:

“Production in the first half of 2013 has been in line with the 2013 guidance.
The Chestnut fields' performance continues to exceed expectation. Studies are
currently underway to fully evaluate the potential impact of the good
performance. My expectations are that these will lead to an extension of field
life and increased reserves. Our production is also expected to increase with
the addition of another Ettrick production well later this year. The Orlando
development is progressing and first oil is expected in 2015. The next project
planned for sanction is Kells which will add significant reserves to Atlantic
Petroleum when sanctioned. 

The current projects will form the base of our production beyond 2015 but we
are still looking for additional opportunities to add to our development and
production portfolio in the short to mid- term. 

With regards to exploration the Dunquin well is still being evaluated. The well
has confirmed a working hydrocarbon system in the Irish Porcupine basin and we
are now looking at the implications for the remaining prospectivity on our
acreage in the area. A big step forward for Atlantic Petroleum with regards to
exploration was the 22nd round awards in Norway. Norway will play an important
role in the future exploration strategy of Atlantic Petroleum and we are
looking at ways to accelerate our activities in Norway. 

We are disappointed with having to relinquish Polecat, but with a portfolio of
40 licences and many opportunities available in the market we face the future
with confidence in the ability to furnish our pipeline with a string of good
projects in the years to come. We now turn our attention to the Pegasus
appraisal well which is expected to be the next well in our programme The
Pegasus area has the potential to add significant reserves to our portfolio.” 



Highlights

  -- Revenue in 1H 2013 DKK 214.2MM (1H 2012 DKK 279.4MM). Average realised oil
     price per barrel was USD 108.5 per boe



  -- EBIT 1H 2013 DKK -21.8MM (1H 2012 DKK 77.2MM)



  -- EBITDAX 1H 2013 DKK 120.7MM (1H 2012 DKK 203.5MM)



  -- General and administration costs 1H 2013 DKK 32.0MM (1H 2012 DKK 17.3MM)
     increase reflects the new office in Bergen on a pre-tax basis. Norway tax
     refund is 78%



  -- Finance gain 1H 2013 DKK 13.1MM (1H 2012 DKK 1.1MM) increase is due to
     exchange rate gains in USD/GBP



  -- Cash generated from operations in the first six months in 2013 was DKK
     84.5MM (1H 2012 DKK 173.6MM)



  -- Cash and cash equivalents at end 1H 2013 was DKK 59.2MM (end 2012 DKK
     242.5MM) decrease reflects acquisition of significant development assets



  -- Production in 1H 2013 amounted to 374,000 boe corresponding to an average
     of 2,066 boepd net to the Group



  -- The Chestnut field produced at stable rates at the high end of expectation.
     A reserve upgrade was taken in the end of year CPR report



  -- Production from the Ettrick field was relatively stable towards the higher
     end of expectation



  -- Blackbird field production has been stable throughout the first half of
     2013. The water injector drilled in late 2012 was commissioned and
     injection commenced in January



  -- The Orlando field development has been approved by partners and
     subsequently been sanctioned by DECC (17th April 2013). Orlando development
     continues following a thorough review of the project and dialogue with the
     operator the schedule is to have first oil in 2015 with expected initial
     production rates of 10,000+ boe gross



  -- In the 22nd Norwegian licensing round Atlantic Petroleum was successful
     acquiring two new licences. The licenses PL704 and PL705 both contain
     multiple high potential prospects that have been de-risked prior to
     application, and given a discovery the reserves can be tied in to the Aasta
     Hansteen Field.



  -- The UK P1766 Magnolia prospect was drilled in 1Q. The well did not
     encounter hydrocarbons and was plugged & abandoned



  -- The UK P1100 Polecat licence will expire in September 2013 and will be
     relinquished. The amount capitalised on the licence DKK 37.6MM was expensed
     during the period as unsuccessful exploration cost



  -- Atlantic Petroleum completed the acquisition of a 4% interest in the Irish
     Continental Shelf Frontier exploration licence FEL 3/04 from ExxonMobil
     where the Dunquin well was being drilled. Dunquin North was still drilling
     at the end of 1H 2013. The well was plugged and abandoned as per the
     pre-drill plan on 30th July 2013. The well penetrated around 249m of the
     massive carbonate Cretaceous target within prognosis and was drilled to a
     total depth of 5000m. Petrophysical analysis of the well logs indicates an
     upper zone of 44m which has residual hydrocarbon saturations in a porous
     reservoir



2013 Outlook

  -- Production for the year is expected to be in the current guidance range of
     725,000 - 800,000 boe



  -- EBITDAX for the year is expected to be in the guidance range of DKK 225MM -
     DKK 275MM



  -- The Chestnut fields' performance continues to exceed expectation. Studies
     are currently underway to fully evaluate the potential impact of the good
     performance. Atlantic Petroleum´s expectations are that these will lead to
     an extension of field life and increased reserves



  -- The Ettrick E9 infill production well spudded in 2Q 2013  is expected to
     come on-stream imminently after the annual Aoka Mizu shut-down in 3Q 2013



  -- The Blackbird operator is evaluating the benefits of drilling a 2nd
     production well to increase production and extend field life of the Ettrick
     and Blackbird fields



  -- Development of the Orlando field continues with first oil expected in 2015.
     The field will add significant production to Atlantic Petroleum
  -- The Kells FDP has been agreed and is being held by DECC pending final
     submission in 2014. First oil is expected in 2016 When sanctioned, the
     Kells development will add significant reserves to Atlantic Petroleum



  -- Following the recent success with awards in the 22nd licensing round in
     Norway Atlantic Petroleum plans to participate in the upcoming APA round
     closing in September 2013



  -- The UK Pegasus West appraisal well will be drilled in 4Q 2013 or 1Q 2014



  -- Planning continues for a Perth field appraisal/ development well. The well
     will spud in late 2013 or early 2014 dependent on rig availability



  -- Dunquin well post well studies will be carried out to ascertain the impact
     of the oil shows and the proven working hydrocarbon system on other
     prospects in the area



  -- Over the next 12 months Atlantic Petroleum has hedged on average 23% of
     expected oil production at an average oil price of USD 104.82/bbl



Conference call

In connection with the publication of the 1H 2013 Condensed Consolidated
Interim Report Atlantic Petroleum will host a webcast/conference call for
analysts and investors 

The webcast/conference call will take place on Wednesday 28th August 2013 at
the local time stated below: 

            Copenhagen 12:00 noon

            London 11:00 AM

            Tórshavn 11:00 AM

            Reykjavik 11:00 AM

For investors and analysts wishing to ask the Group representative questions
the call-in details are as follows: 

DK: +45 70265040 or
UK: +44 2088179301

More details about the conference call can be found on the Company's website
www.petroleum.fo. 



Further Details:

Further details can be obtained from Ben Arabo, CEO, tel +298 350100
(ben.arabo@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's e-mail
newsletter. 



Announcement no. 35/2013

Issued 28-08-2013




         P/F Atlantic Petroleum
         Yviri við Strond 4, 3rd floor
         P.O. Box 1228
         FO-110 Tórshavn
         Faroe Islands
         Telephone +298 350 100
         Fax +298 350 101
         Website: www.petroleum.fo
         E-mail: petroleum@petroleum.fo

Priedai:

Webconference 1H 2013 Interim Report.pdf

2Q 2013 Condensed Consolidated Interim Report 30-06-2013.pdf