Atlantic Petroleum P/F - Ársreikningur

EBIT for 1Q 2009 of DKK -15.4MM and positive net cash from operating activities of DKK 2.7MM despite low oil price in 1Q 2009.

Tórshavn, Faroe Islands 22nd May 2009 - Atlantic Petroleum (OMX: FO-ATLA) the
international upstream oil and gas company, today announced its results for 1Q
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 1Q results for the Atlantic Petroleum Group.
Production from Chestnut and South Chestnut has given the Company a positive
cash flow. In addition to this the Company has secured a near term cash loan
and is in the advanced stages of restructuring the bridge facilities to long
term facilities.” 



1Q 2009 Highlights

Operational
•	Total production in 1Q 2009 amounted to 119,756 bbl, corresponding to an
average of 1,330 bopd net to Atlantic Petroleum. Following the tie-in of the
South Chestnut well, the production from the Chestnut field was shut in for
almost two weeks, reducing the average net production in the quarter by
approximately 300 bopd. 
•	The South Chestnut well has increased recoverable reserves and potential
daily average production. 
•	The Ettrick development is progressing towards first oil in the coming months
and is expected to add approximately 1,650 boepd net to Atlantic Petroleum's
production. 
•	In accordance with Atlantic Petroleum‘s strategy to reduce near term
exploration exposure, an agreement has been signed with Challenger Minerals
North Sea Limited to farm down Atlantic Petroleum's equity in UK Licence P099,
Block 110/14d from 25% to 7.5%. This licence contains the Crosby prospect which
is due to be drilled this summer. Furthermore, 12.5% of the West Lennox
discovery in Licence P099, Block 110/14c and 12.5% of Licence P1478, Blocks
110/9c and 110/14e have also been farmed down to Challenger Minerals under the
agreement. 
•	Due to the financial crisis and current oil price, progress on maturing
selected assets has slowed down, which will  improve cash flow in the short
term without affecting the long term strategy. 
•	Atlantic Petroleum's interest of 8.27% in UK P317 licence, which includes the
Blackbird discovery, remains unchanged as a back-in option from a previous
owner in the UK Licence P317, has lapsed. 
•	Sigurð í Jákupsstovu has today been appointed as the company's Chief
Operating Officer (COO). Since May 2008 he has held the position of Technical
Manager. Sigurð holds an MSc in Mechanical Engineering and a PhD in Reservoir
Modelling and has 15 years experience working in the oil industry and with the
Faroese Energy Authorities. 

Financial 
•	Revenues of DKK 26.6MM (1Q 2008: DKK 0MM)
•	Operating profit (EBIT) of DKK -15.4MM (1Q 2008: DKK -5.0MM)
•	Profit before tax of DKK 8.7MM (1Q 2008: DKK -34.2MM)
•	Profit after tax of DKK 15.3MM (1Q 2008: DKK -34.2MM) 
•	Net cash from operating activities of DKK 2.7MM (1Q 2008: -0.5MM)
•	Average realised oil price decreased to 38 $/bbl in 1Q 2009 from 55 $/bbl in 
4Q 2008 
•	Total assets of DKK 706.0 MM (At year end 2008: 642.9 MM)
•	Total shareholder's equity of DKK 175.9 MM (At year end 2008: 166.8 MM)
•	Action taken to reduce administration costs 
•	The company has today entered into an additional bridge-loan facility of DKK
35MM repayable 31st July 2009. 


2009 Outlook

Operational
•	Production is expected to increase to the range of 3,200 to 3,600 boepd by
bringing the Ettrick and Jarvis fields on stream within the next months 
•	Unchanged estimated total production in the range of 800,000 to 900,000
barrels net 
•	Drilling the Crosby exploration well on the UKCS during the summer 
•	Bring the Blackbird discovery closer to development
•	Evaluation of satellites around the Chestnut and Ettrick fields 
•	Bring the Perth field closer to development Europe

Financial 
•	EBIT is expected to reach DKK 50-60 MM for 2009 compared to previously DKK
20-25 MM. The estimate assumes an oil price for the rest of 2009 of 60 USD/bbl,
approximately equal to the current average forward oil price curve for 2009 and
the current spot USD and GBP exchange rates. This gives an average oil price of
53-54 USD/bbl for 2009. The estimate is before deduction of unsuccessful
exploration costs. The previously estimated figure was based on an average
realised oil price of USD 45/bbl, but the impact of the higher oil price
expectation now will be counteracted to a certain degree by OPEX costs so far
being higher than expected and by a slight reduction in estimated production
volumes for the year although the overall production estimate is unchanged
between 800,000 and 900,000 barrels net to Atlantic Petroleum in 2009. 
•	Based on the assumption above we expect a cash flow from the operating
activities in excess of DKK 100MM in 2009. 
•	Investments in exploration and appraisal activities of DKK 14 millions for
the remainder of 2009. 
•	Investments in field developments estimated to DKK 40 millions for the
remainder of 2009. 
•	The management, as planned, is in the process of refinancing the short term
bridge loan facilities of DKK 35MM plus interest which is due for repayment
prior to the DKK 140 MM loan plus interest, which is due for repayment at the
end of July 2009 and the DKK 270 MM loan plus interest which is due for
repayment by year end 2009. Discussions are ongoing with the Company's banking
institutions and a re-financing of existing bridge loan facilities is expected
to be announced in the near future, together with a share capital increase that
is expected to take place in the course of 2009. A positive outcome of these
refinancing activities is necessary for the company's ability to continue as a
going concern. 
•	For the purpose of optimising its capital structure going forward, the
Company has retained Handelsbanken Capital Markets and CanaccordAdams as
financial advisors. 


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 09/2009
Issued 22.05.2009

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

Attachments:

condensed consolidated interim report 1q 2009.pdf