Atlantic Petroleum P/F - Company Announcement

P/F Atlantic Petroleum announces Company's approval for the Blackbird field development

Tórshavn, Faroe Islands,10th December 2010 - P/F  Atlantic Petroleum
(OMX:FO-ATLA) has today notified partners on the Company's approval for
participation in the development of the Blackbird field as a sub-sea tie back
to the producing Ettrick field. 

The Blackbird co-venturers comprise Nexen Petroleum UK Limited (Operator), Dana
Petroleum (BVUK) Limited and Atlantic Petroleum UK Limited. The Blackbird field
was discovered in 2008 by the 20/2a-8 well which encountered oil in Upper
Jurassic sandstones. It was appraised in 2010 by the 20/2a-9 well which tested
at a facilities constrained flow rate of 7,000 barrels per day. 

After evaluating the results of the appraisal well, and investigating the
feasibility and economics of developing the discovery as a satellite field to
Ettrick, the board of Atlantic Petroleum has approved the Operators
recommendation to develop Blackbird. The development will initially consist of
one production well and one water injection well. The appraisal well drilled
this summer has already been completed as a future Blackbird producer. Subsea
installations will be carried out in the summer of 2011, allowing for first oil
in January 2012. The water injector well will be drilled in 2012. The field is
expected to produce until 2016 in the base case scenario. 

The decision to approve the development of Blackbird is based on a base case
gross recoverable volume estimate of 6.2 MMBbls of oil equivalents. It is
Atlantic Petroleum's view that Blackbird carries significant upside potential
beyond this base case. 

Ben Arabo, Atlantic Petroleum's CEO, stated:
“The decision to develop Blackbird is another important milestone for Atlantic
Petroleum. The ability to tie back the discovery a distance of only around 6 km
to the Ettrick production manifold makes this a relatively simple and efficient
development with a short time to first oil. This project will expand and extend
Atlantic Petroleum's production profile, creating further value for the
Company” 



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. 31/2010		                  Issued 10-12-2010

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 		             E-mail: petroleum@petroleum.fo
Faroe Islands