Atlantic Petroleum P/F - Ársreikningur

Operating profit in 1Q 2012 of DKK 65.3MM (1Q 2011: DKK 26.7MM)

Operating profit in 1Q 2012 of DKK 65.3MM (1Q 2011: DKK 26.7MM) and profit
before taxation of DKK 61.1MM (1Q 2011: DKK 16.2MM). Cash balance at end of 1Q
2012 was DKK 169.0MM (At year end 2011: DKK 114.3MM) 

Tórshavn, Faroe Islands, 2012-05-30 11:17 CEST (GLOBE NEWSWIRE) -- P/F Atlantic
Petroleum (OMX: FO-ATLA) today announces its results for the first three months
of 2012. 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:

“Atlantic Petroleum has had a 1st quarter of 2012 with high oil prices and good
production rates. This has generated a 1st quarter EBIT of DKK 65.3MM which is
the best ever for Atlantic Petroleum. 

Atlantic Petroleum is continuing to invest in the future. We have submitted 9
applications for 31 blocks or part blocks in the UK 27th Round that closed 1st
May. The Orchid exploration well was drilled in March/April and discovered oil.
In July the Statoil operated Brugdan II well spuds in the Faroe Islands, and
the Spaniards well in the UK is expected to spud later in 2012. We plan to add
to our 2012 drilling portfolio and are also firming up the programme for 2013. 

We have an exciting year ahead of us with big decisions to be made on assets in
our portfolio and with regards to business development opportunities. Asset
deals across the value chain are continually being evaluated. With a cash
balance on  30th May of DKK 226MM we are well equipped to invest in the right
opportunity when we see it.” 



Highlights



  -- EBIT in 1Q 2012 was DKK 65.3MM, which is the highest ever
  -- EBITDAX in 1Q 2012 was DKK 104.4MM
  -- Cash and cash equivalents at end 1Q 2012 was DKK 169MM, compared to DKK
     114MM at the end of 4Q 2011. Cash and equivalents at 30th May 2012 was DKK
     225.5MM
  -- Total production in 1Q 2012 amounted to 232,000 boe (barrels of oil
     equivalent) corresponding to an average of 2,550 boepd (barrels of oil
     equivalent per day) net to Atlantic Petroleum
  -- Production from the Ettrick field has been relatively stable and towards
     the higher end of expectations. A new water injection well has been drilled
     and completed
  -- Blackbird field was brought into production on 16th November 2011. In 1Q
     2012, the field has been producing through the Ettrick FPSO Aoka Mizu at
     expected rates
  -- The Chestnut field is producing at rates towards the higher end of
     expectation. Production trials have been on-going to assess the possibility
     of modifying choke settings on the production wells with a view to
     enhancing remaining recovery
  -- Perth field evaluation is on-going as planned, with a revised field
     development plan (FDP) submitted to the UK authorities in February 2012
  -- The 29/1c-9 Orchid well was spudded on UK licence P.1556, Block 29/1c on
     the 10th March. Atlantic Petroleum has a 10% working interest. The well was
     subsequently plugged and abandoned in May
  -- On 30th December 2011, Atlantic Petroleum was offered award of 5 new UK
     licences. Formal acceptance of these licences has been on-going in 1Q 2012
  -- Planning on-going for the Faroes Brugdan II well (AP 1%) and the UK
     Spaniards well (AP 3.24%), both of which are scheduled to spud in 3Q 2012



2012 Outlook


  -- Production for the year is expected to be in line with previous guidance
     within the range of 1,900 - 2,200 boepd. Financial performance guidance
     remains unchanged
  -- The Blackbird field development will be completed with the drilling of an
     injector well in 2Q-3Q 2012
  -- A series of well work-overs and the new water injector are designed to
     maintain production rates from the Ettrick field
  -- Chestnut production is expected to be steady through-out the year, with
     operator Centrica looking at late life options for maximizing recovery
  -- On the Perth field, await DECC feedback on the Field Development Plan and
     continue technical evaluation ahead of a final investment decision
  -- Drill an exploration well on the Brugdan Deep prospect in 3Q-4Q 2012
  -- Drill an exploration well on the Spaniards prospect in 3Q 2012
  -- The Group has agreed with P/F Eik Banki Føroyar that repayment of the
     current debt facility will be extended from three to five years. The
     current unused overdraft facility with P/F BankNordik will be relinquished
  -- The Company has engaged in oil price hedging to secure a more stable
     revenue stream. Approximately 27% of current production has been hedged 12
     months ahead. Average oil price hedged at is USD 110 per barrel
  -- In the 27th UK Licensing Round closing 1st May 2012 Atlantic Petroleum had
     9 applications, for a total of 31 bocks or part blocks with various
     partners and operators. 27th round awards are expected later in the year
  -- The Company continues to actively evaluate a number of business development
     opportunities across the value chain to enhance and build upon existing
     activity

Conference call

In connection with the publication of the 1Q 2012 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 30th May, at 12.00
noon (GMT).  If you would like to participate in the conference call, please
dial the relevant number below a few minutes before the conference starts: 

- DK: +45 70140453
- UK: +44 (0) 2071086303


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. 15/2012

Issued 30-05-2012




         P/F Atlantic Petroleum
         Yviri við Strond 4
         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

Attachments:

1Q 2012 Condensed Consolidated Interim report 31-03-2012.pdf