Atlantic Petroleum P/F - Financial Statement Release

Record performance for Atlantic Petroleum in 1H 2012. The Group increases its 2012 guidance for production and EBITDAX

Operating profit in 1H 2012 of DKK 77.2MM (1H 2011: DKK 77.0MM) and profit
before taxation of DKK 66.7MM (1H 2011: DKK 58.2MM). Cash balance at end of 1H
2012 was DKK 231.2MM (At year end 2011: DKK 114.3MM) 

Tórshavn, Faroe Islands, 2012-08-29 08:26 CEST (GLOBE NEWSWIRE) -- P/F Atlantic
Petroleum (OMX: FO-ATLA) today announces its results for the first six months
of 2012. This company announcement should be read in conjunction with Atlantic
Petroleum's Condensed Consolidated Interim Report attached to this
announcement. 



Ben Arabo, Atlantic Petroleum's CEO, stated:

“Production in the first half of 2012 has exceeded our expectation due to good
field management and production optimization work. Therefore we are pleased to
increase our guidance for the full year to 800,000 boe to 870,000 boe. Our
EBITDAX has also exceeded expectations thanks to good production performance
and high oil price. The new EBITDAX range will be DKK 270MM to 350MM. 

We have been busy adding to our well programme this last quarter. Our second
well this year - Brugdan II in the Faroe Islands - spudded in June, and our UK
Spaniards well is expected to spud this quarter. In addition to the wells
ongoing and planned we are in the process of finalising two farm-in agreements,
to be announced upon completion, and we expect to participate in two more wells
in 2012 as a result. 

On the international front we have established a Netherlands subsidiary in
preparation for activities in the Netherlands. This is one step in our
expansion. We are looking at investment opportunities to make good use of our
DKK 275.4MM cash position, and we are confident that we will succeed in finding
the right opportunities in today's cash strapped market.” 



Highlights

Record performance for the Group in 1H 2012

  -- Revenue in 1H 2012 was DKK 279.4MM which is the highest ever
  -- EBIT in 1H 2012 was DKK 77.2MM 
  -- EBITDAX in 1H 2012 was DKK 206.1MM which is the highest ever
  -- Cash generated from operations in 1H 2012 was DKK 173.6MM which is the
     highest ever
  -- Cash and cash equivalents at end 1H 2012 was DKK 231.2MM, compared to DKK
     114.3MM at year end 2011. Cash and cash equivalents at 29th August 2012
     were DKK 275.4MM the highest ever for the Group
  -- Production in 1H 2012 amounted to 449K boe corresponding to an average of
     2.467 boepd net to the Group which is the highest ever for the first 6
     months
  -- Production from the Ettrick field was relatively stable and towards the
     higher end of expectations. A new water injection well has been drilled and
     completed. A well work-over campaign on 3 wells has also been completed.
     Operator Nexen has increased the estimate of abandonment costs
  -- Blackbird field was brought into production on 16th November 2011. In 2Q
     2012, the field has been producing through the Ettrick FPSO Aoka Mizu at
     slightly below expected rates. A water injector was spudded in July 2012.
     Operator Nexen has increased the estimate of abandonment costs
  -- The Chestnut field production was at the high end of expectation. Trials to
     optimise future production were successfully completed
  -- The Perth field development process has been delayed by the Parkmead
     acquisition of operator DEO Petroleum. We await to engage with new operator
     Parkmead
  -- The Faroes wildcat exploration well Brugdan II well on Licence L006 was
     spudded in June and drilling is ongoing. A result is expected later this
     year. The Group has a 1% working interest
  -- The Orchid exploration well was spudded on UK licence P.1556 on the 10th
     March. Atlantic Petroleum has a 10% working interest. On 3rd May 2012 the
     Group announced that the well had encountered oil in Chalk Formation
  -- In UK 26th Licensing Round the Group was offered award of 5 new UK
     licences. Formal acceptance of these licences has been completed
  -- In UK 27th Licensing Round the Group submitted 9 bids for 31 blocks or part
     blocks. Awards expected later in the year
  -- The Group agreed with its debt holder to extend repayment of current debt
     facility from three to five years
  -- Atlantic Petroleum has established a subsidiary in the Netherlands in
     preparation for activities in the country
  -- Average realised oil price in 1H was USD 112.5/bbl
  -- Over the next 12 months the Group has hedged on average 20.5% of expected
     oil production at an average oil price of USD 110.4/bbl



2012 Outlook

 Atlantic Petroleum increases its 2012 guidance for production and EBITDAX

  -- Production for the year is expected to exceed the current guidance range of
     700,000 - 800,000 boe. New guidance is in the range 800,000 - 870,000 boe
  -- EBITDAX for the year is expected to exceed the current guidance range of
     DKK 200MM - DKK 270MM. New guidance is in the range DKK 270MM - DKK 350MM
  -- The Blackbird field development will be completed with the drilling and
     tie-in of a water injector well in 3Q 2012
  -- Planning is underway for further production well targets on the Ettrick
     field, with spud sometime in 2013
  -- Chestnut production is expected to be above initial expectations, as a new
     flare limit allowing increased oil production has been approved by DECC.
     The operator plans to implement technical and commercial improvements for
     maximizing recovery
  -- On the Perth field, await engagement with new operator Parkmead and await
     feedback on the Field Development Plan from DECC
  -- Complete the drilling of  the Brugdan Deep prospect in 3Q-4Q 2012
  -- Potential for spudding a further 3 exploration or appraisal wells prior to
     the end of the year
  -- Drilling of the exploration well on the Spaniards prospect to be spudded in
     3Q 2012
  -- The Group is currently finalising negotiations of farming-in to two further
     exploration and appraisal wells expected to be spudded in 4Q 2012
  -- The Company continues to actively evaluate a number of business development
     opportunities across the value chain to enhance and build upon existing
     activity



Conference call

In connection with the publication of the 1H 2012 Condensed Consolidated
Interim Report Atlantic Petroleum will host a webcast/conference call for
analysts and investors. 

The webcast/conference call will take place on Wednesday 29th August

More details about the conference call can be found on the Company's website
www.petroleum.fo. 



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. 23/2012

Issued 29-08-2012


         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:

2Q 2012 Condensed Consolidated Interim report 30-06-2012.pdf