Atlantic Petroleum P/F - Quarterly report

- 2007

Interim Consolidated Financial Statements of 
P/F Atlantic Petroleum for the first nine months of 2007

The Interim Consolidated Profit after taxation for first nine months of 2007
was a loss amounting to DKK -50,484,378 and for the 3Q 2007 a loss amounting to
DKK -11,170,765. 

Tórshavn, Faroe Islands 16th November 2007 - Atlantic Petroleum (OMX: FO-ATLA)
the international upstream oil and gas company, today announced results for the
third quarter ending 30th September 2007. 

3Q Highlights

P/F Atlantic Petroleum's consolidated profit after taxation for the first nine
months of 2007 amounted to DKK -50,484,378, compared to DKK -6,638,608 for the
first nine months of 2006. The consolidated profit after taxation for 3Q of
2007 amounted to DKK -11,170,765, compared to DKK -257,841 for 3Q of 2006. 

The consolidated result before taxation for the first nine months of 2007 was
DKK -50,484,378, compared to DKK -6,614,904 for the first nine months of 2006.
The consolidated result before taxation for 3Q of 2007 was DKK -11,170,765,
compared to DKK -255,402 for 3Q of 2006. 

The consolidated operating profit for the first nine months of 2007 was DKK
-44,263,021, compared to DKK -7,783,305 for the first nine months of 2006. The
consolidated operating profit for 3Q 2007 was DKK 
-3,496,076, compared to DKK -2,628,847 for 3Q of 2006.

The Company's consolidated total assets amounted to DKK 373,231,502 at the end
of September 2007, compared to DKK 361,416,965 at the year end 2006. 

The Company's total shareholders' equity amounted to DKK 249,238,878 at the end
of September 2007, compared to DKK 296,676,942 at the year end 2006. 

The operating profit for 3Q of 2007 is as anticipated, but the finance costs
are higher than forecasted due to higher unrealised exchange rate differences
on inter-company balances nominated in GBP. The unrealised finance costs is
approx DKK 8 million in 3Q 2007. It is important to note that this has no cash
flow impact. The finance costs in 3Q are the main reason why the loss after tax
is higher than anticipated. 

The Sevan Hummingbird floating production storage and off take facility, which
will produce the Chestnut oil, is currently being out-fitted in Rotterdam and
we anticipate installation in late 2007 with production start-up shortly
thereafter. Whether production starts in late 2007 or in the beginning of 2008
is not material to the company. 

The Ettrick Field development is on track with first oil mid 2008. Atlantic
Petroleum's investments in the Ettrick field are expected to increase from
previous DKK 210 million to DKK 260 million, due to higher industry costs. Work
is also ongoing to determine whether the North Ettrick and Jarvis discoveries
can be tied into the Ettrick development. 

It is difficult to predict the result for 2007, as there is no confirmed date
for commencement of production from the Chestnut field and the risk of how
smoothly the start-up phase will run. Previously we expected a positive result
in 2007, before deduction of unsuccessful exploration/appraisal costs,
amounting to approx DKK 33 million The DKK 33 million are included in the loss
of DKK 50 million for the first nine months of 2007. If the production from
Chestnut slips in 2007, we expect a total loss for the year of approx DKK 55
million. Included in this is an unrealised currency exchange loss of approx DKK
8 million. The result is however subject to uncertainties about oil production,
oil prices, exchange rates and the result of the Blackbird exploration well, if
this is finalised in 2008. 
 


Wilhelm Petersen, P/F Atlantic Petroleum's CEO stated: 
“We have continued to follow our strategy to develop the company. We have added
oil reserves to the company with the successful drilling and testing on the
Hook Head discovery in Ireland, and are now in the phase of planning how this
asset can be brought forward towards production. Also we have been awarded new
exploration opportunities adjacent to Hook Head, farmed into the Marten
discovery in UK and entered in to a bridge loan facility which allows Atlantic
Petroleum to pursue the expanding strategy. Shortly we will start to realise
our efforts in the past when the Chestnut field commences production. For us it
is not material if production starts in late 2007 or early 2008. If production
start slips in 2007, which is likely, the acquisition costs of the Chestnut
field will be reduced with approx 2 million”. 

Attachments:

atlantic petroleum - press release 3q 2007.pdf

atlantic petroleum 3q 2007.pdf