Atlantic Petroleum P/F - Prospectus/Announcement of Prospectus

Atlantic Petroleum to publish Prospectus in connection with Rights Issue to raise Gross Proceeds of up to DKK 188 million

Not to be distributed in the US, Canada, Australia or Japan 

Tórshavn, Faroe Islands, 1st October 2009 - P/F Atlantic Petroleum (OMX:
FO-ATLA) the international upstream oil and gas company, announces that the
Supervisory Board of P/F Atlantic Petroleum has today decided to use its
authorisation to increase the Company's share capital and has to this effect
today obtained approval from NASDAQ OMX Iceland of a prospectus to be issued in
connection with an offering of shares with pre-emptive rights (“Pre-emptive
Rights”) to the Company's existing shareholders (the “Offering”). The Company
plans to publish the prospectus tomorrow, 2nd October. 

The Offering comprises up to 1,500,973 new shares with a nominal value of DKK
100 each (the “Offer Shares”), offered at the ratio of 4:3, i.e. four new
shares for three existing. Four Pre-emptive Rights are allocated for each
existing share held, and for every 3 Pre-emptive Rights, the holder will be
entitled to subscribe for 1 Offer Share at a subscription price of DKK 125 per
Offer Share. 

The last day of trading of Existing Shares incl. Pre-emptive Rights will be
tomorrow 2nd October 2009. 


Reasons for the Offering and use of proceeds
The reason for the Offering is a wish to strengthen the Company's financial
position and thereby to establish a stronger financial basis for the future
development of the Company. 

Upon full subscription of the Offering, assuming an issue of 1,500,973 Offer
Shares (corresponding to the maximum Offering), gross proceeds to the Company
will be approximately DKK 188 million while net proceeds (gross proceeds less
estimated costs to the Company relating to the Offering) are expected to be
approximately DKK 175 million. Given a subscription of DKK 68 million
(corresponding to the amount in respect of which the Company has received
undertakings to subscribe), the Company expects to receive net proceeds from
the offering of DKK 60 million. 

Out of the net proceeds, first DKK 172 million will be used to make repayments
under the Company's loans (please refer to the Company's announcement of 27th
September 2009 regarding the Company's amended loan conditions). The remaining
net proceeds from the Offering, after repayment of loans, will remain in the
Company. 

Binding advance subscription undertakings
The Offering is not underwritten, but certain of the Company's shareholders
including, but not limited to, Eik Banki, TF Holding, Sp/F 14, Føroya
Lívstrygging, Bikubenfonden af 1989, and the Managing Director and CEO of the
Company Wilhelm E. Petersen, have each entered into a binding undertaking to
exercise Pre-emptive Rights allocated to them in the Offering and consequently
to subscribe for, in aggregate, 327,082 Offer Shares, corresponding to total
gross proceeds to the Company of approximately DKK 41 million (approximately €
5 million). Further, a number of investors have made binding undertakings to
take effect if not all Pre-emptive Rights are exercised in the Offering, to
subscribe for Offer Shares ensuring total minimum gross proceeds to the Company
of approximately DKK 68 million. In addition, Føroya Banki has undertaken to
subscribe for 160,000 Offer Shares corresponding to DKK 20 million
(approximately € 3 million) to become effective once Offer Shares providing for
gross proceeds equal to at least DKK 130 million have been subscribed for in
the Offering, whether through exercise of Pre-emptive Rights or otherwise. 

Offer price
The Offer Shares are offered at DKK 125 per share of DKK 100 nominal value,
free of brokerage fees. 

Subscription rights
Shares traded after 5th October 2009 at 8:00 a.m. Faroese time (corresponding
to 9.00 a.m. CET and 7.00 a.m. Icelandic time) will be traded ex Pre-emptive
Rights. On 7th October 2009 at 11:30 a.m. Faroese time (corresponding to 12.30
p.m. CET and 10.30 a.m. Icelandic time), anyone who is registered with VP
Securities A/S as a shareholder of Atlantic Petroleum as well as holders of
paper shares of Atlantic Petroleum will be allocated Pre-emptive Rights.
Existing shareholders will be allocated four (4) Pre-emptive Rights for each
existing share of DKK 100 nominal value held, and for three (3) Pre-emptive
Rights, the holder is entitled to subscribe for one (1) Offer Share of DKK 100
nominal value. The Pre-emptive Rights may be traded on NASDAQ OMX Iceland and
NASDAQ OMX Copenhagen during the period from 5th October 2009 at 9:00 a.m. CET
and 7:00 a.m. Icelandic time to 22nd October 2009 at 5:00 p.m. CET and 3:23
p.m. Icelandic time. Pre-emptive Rights that are not exercised during the
subscription period will lapse with no value, and the holder of such
Pre-emptive Rights will not be entitled to compensation. 

Investors wishing to subscribe for Offer Shares not subscribed to through
exercise of Pre-emptive Rights must do so through their own custodian
institution or through the Global Co-ordinator or the Co-manager and by using
the subscription form, which will be enclosed with the prospectus. 

Subscription ratio
The Offering is completed at the ratio of 4:3 for Atlantic Petroleum's existing
shareholders. 

Subscription period
The Offer Shares may be subscribed from 8th October 2009 at 8:00 a.m. Faroese
time (corresponding to 9.00 a.m. CET and 7.00 a.m. Icelandic time) to 27th
October 2009 at 6:00 p.m. Faroese time (corresponding to 7:00 p.m. CET and 5:00
p.m. Icelandic time). 

The Offer Shares are issued under a temporary securities identification code
and approved for admission to trading on NASDAQ OMX Iceland and NASDAQ OMX
Copenhagen as from 3rd November 2009. 

Registration of the Offer Shares with the Faroese Company Registration will
take place following completion of the Offering, expected to be on 2nd November
2009, and as soon as possible thereafter, the temporary securities
identification code will be merged with the securities identification code of
the existing shares. 

Global Coordinator
Handelsbanken Capital Markets (a division of Svenska Handelsbanken AB (Publ.))

Co-manager
Eik Banki P/F

Expected timetable of principal events

Last day of trading of Existing Shares
incl. Pre-emptive Rights:	                           2nd October 2009

First day of trading of Existing Shares
excl. Pre-emptive Rights:	                           5th October 2009

Trading period for Pre-emptive Rights
commences:				         5th October 2009 at 9:00 a.m. CET
                   				on NASDAQ OMX Copenhagen and						9:00 a.m. Icelandic
time on 
					         NASDAQ OMX Iceland 

Allocation time:					7th October 2009 at 11:30 a.m. 						Faroese time
                                                       (corresponding to 
 						12.30 p.m. CET and 10.30 a.m. 						Icelandic time) through the
						computer system of VP   
                                                       Securities 
 						Services

Subscription period for Offer Shares begins:		8th October 2009 (the
                                                       day after the Allocation
                                                       Time) 
Trading period for Pre-emptive Rights ends:		22nd October 2009 at 5:00 p.m.
 						CET on NASDAQ OMX Copenhagen 						and 03:23 p.m. Icelandic time on
 						NASDAQ OMX Iceland

Subscription period for Offer Shares ends:		27th October 2009 at 6:00 p.m.
						Faroese time (corresponding to 
 						7:00 p.m. CET and 5:00 p.m. 						Icelandic time)

Publication of the results of the Offering:		Not later than two business						 
       days after the end of the 
                                                       Subscription Period
                                                       (expected 
                                                       to be on 29th October
                                                       2009) 

Completion of the Offering:	                           The Offering will only be
                                                       completed if and when
                                                       the Offer 
                                                       Shares subscribed are
                                                       issued 
                                                       by the Company upon
                                                       registration of the
                                                       capital 
                                                       increase with the Faroese
                                                       Company Registration
                                                       which is 
                                                       expected to take place
                                                       on 2nd 
                                                       November 2009     
Official listing of Offer Shares under
existing securities code expected to                       
take place:					3rd November 2009

Prospectus
Requests for copies of the prospectus containing detailed information about
Atlantic Petroleum and the complete terms and conditions of the Offering may be
addressed to: 

Handelsbanken Capital Markets
Havneholmen 29
DK-1561 Copenhagen V
Denmark
Tel: +45 3341 8200


P/F Eik Banki
Yviri við Strond 2
100 Tórshavn
Faroe Islands 
Tel: +298 348 000

After publication, the prospectus will also be available at the Company's
registered office in Tórshavn, Faroe Islands. Subject to certain exceptions,
the prospectus can also be downloaded from the Company's website:
www.petroleum.fo. 

Restrictions applicable to the Offering
This announcement does not constitute an offer or an invitation to invest in
the Company. Subscription for shares should only take place based on the
published prospectus. 

Regardless of the above, Atlantic Petroleum expects that due to restrictions
under applicable law and rules, some or all investors residing in the United
States, Canada, Australia, Japan and other jurisdictions outside Faroe Islands,
Denmark and Iceland may not have the prospectus distributed to them and may not
be able to exercise their Pre-emptive Rights or subscribe for the Offer Shares.
The prospectus does not constitute an offer of or an invitation to purchase any
Pre-emptive Rights or subscribe for any Offer Shares in any jurisdiction in
which such offer or invitation would be unlawful. 

Tórshavn , 1st October 2009

Birgir Durhuus  				Wilhelm Petersen
Chairman 					Managing Director and CEO


Further details can be obtained from Birgir Durhuus, Chairman of the Board, tel
+45 2542 4337 (birgird@petroleum.fo) or Wilhelm Petersen, Managing Director and
CEO, tel +298 350 100 (wilhelmp@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. 

About Atlantic Petroleum
Atlantic Petroleum is a Faroese independent exploration and production (E&P)
company with oil and gas interests in the North Sea, East Irish Sea and Celtic
Sea and on the Faroese Continental Shelf. The Company has interests in 15
licences containing around 30 fields, discoveries, prospects or leads.
Furthermore, Atlantic Petroleum has partnerships with 17 international oil
companies operating in North West Europe. The objective of Atlantic Petroleum
is to develop the offshore oil and gas potential in North West Europe on a
commercial basis, and presently the Company engages in activities ranging from
exploration, through appraisal, to development and production. Atlantic
Petroleum's shares are listed on both NASDAQ OMX Iceland and NASDAQ OMX
Copenhagen. 


Announcement  no. 26/2009		                             Issued 01-10-2009


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

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01-10-2009 atlantic petroleum to publish prospectus in connection with rights issue to raise gross proceeds of up to dkk 188 million.pdf