Atlantic Petroleum P/F - Fyrirtækjafréttir

Atlantic Petroleum enters the Norwegian Continental Shelf through acquisition of Emergy Exploration AS

Tórshavn, Faroe Islands, 2012-11-13 16:32 CET (GLOBE NEWSWIRE) -- Atlantic
Petroleum (OMX: FO-ATLA) announces that Atlantic Petroleum has today issued a
voluntary offer for 100% of the shares in Emergy Exploration AS (“Emergy”) (the
“Offer”) based in Bergen, Norway. 

Emergy Exploration is an independent, upstream oil and gas company focused on
the Norwegian Continental Shelf (the “NCS”). 

The Offer for 100% of the shares in Emergy is USD 12.7 million to be paid in
cash or a combination of cash and shares in P/F Atlantic Petroleum, of which
50% will be paid in cash upon acceptance of the Offer and 50% will be paid at
the latest on 31st January 2013 in cash, shares or a combination of cash and
shares. The offer has been pre-accepted by the holders of 90% of the Emergy
shares. 

Following the transaction, Emergy will change name to Atlantic Petroleum Norge
AS with Emergy's current CEO, Jonny Hesthammer, taking up the position as
Managing Director. 

The transaction is an important step in Atlantic Petroleum's strategy of
combining organic growth with targeted acquisitions and provides a solid base
and organisation for accelerated growth through exploration on the NCS, which
is a highly prolific and prospective hydrocarbon region with 2 of the world's 5
largest discoveries over the last two years. 

Emergy has recently been pre-qualified by the Norwegian Ministry of Petroleum
and Energy as a licensee on the NCS. This allows Atlantic Petroleum Norge AS to
participate in the upcoming 22nd Norwegian licensing round with deadline for
applications on 4th December 2012 and with awards expected by the summer of
2013. 

Atlantic Petroleum Norge AS has an experienced team of professionals led by Dr.
Hesthammer with a strong track record on the NCS and a leading competence
within interpretation and integration of seismic and electromagnetic data used
to high grade exploration prospects and mitigate exploration risk. 

After the completion of the transaction, Atlantic Petroleum will receive 15%
ownership in license PL270 operated by VNG Norge AS in the northern part of the
Norwegian North Sea containing 3 discoveries including the Agat gas discovery
which, according to VNG Norge's estimate, will add 9 mmboe mean contingent
resources net to Atlantic Petroleum and 10% ownership in license PL559 operated
by Rocksource ASA in the Norwegian Sea containing numerous exploration
prospects with significant resource potential. 

Atlantic Petroleum regards the NCS as a very attractive region to operate in
with its significant remaining exploration potential, stable operating
environment and a fiscal regime that is particularly attractive for exploration
activities, with a 78% tax refund of exploration expenses from the Norwegian
authorities, refunded in cash the calendar year after the expenses are
incurred. 

ABG Sundal Collier Norge ASA has acted as financial advisor to Emergy in the
transaction. 

Ben Arabo, CEO of Atlantic Petroleum comments: “Numerous recent large and giant
discoveries offshore Norway have demonstrated the significant potential in the
region. The acquisition of Emergy initiates Atlantic Petroleum's effort to tap
into this potential. With this transaction we are not only gaining access to
the Norwegian shelf, but we are also gaining an experienced team of
professionals with a strong track record. We will use the solid base that
Emergy provides to grow our portfolio and activities on the Norwegian
Continental Shelf.” 

Jonny Hesthammer, CEO of Emergy comments: “We are very pleased with this
transaction which will allow us to participate in numerous exciting
opportunities on the Norwegian Continental Shelf in the years to come. Our new
industrial owner, Atlantic Petroleum, has a solid financial base and a highly
competent technical and commercial team which we look very much forward to
become a part of.” 

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. 

Invitation to Webcast & Teleconference
A webcast/teleconference will be held on Wednesday 14th November at 10:30am CET
to present the transaction. Details of the webcast will be available on the
Company´s website www.petroleum.fo. 

Please see the attached investor presentation for further details about the
transaction. 

Announcement no. 32/2012

Issued 13-11-2012






         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:

32-2012 AP Norway Entry presentation.pdf