Atlantic Petroleum P/F - Financial Statement Release

Gross profit of DKK 54.2MM 1Q 2013

Atlantic Petroleum narrows its 2013 guidance for production and increases 2013
EBITDAX guidance 

Tórshavn, Faroe Islands, 2013-05-29 08:08 CEST (GLOBE NEWSWIRE) -- Gross Profit
in 1Q 2013 of DKK 54.2MM (1Q 2012: DKK 75.7MM). Operating profit in 1Q 2013 of
DKK -1.0MM (1Q 2012: DKK 65.3MM) and profit after tax of DKK 6.1MM (1Q 2012:
DKK 23.4MM). Cash balance at end of 1Q 2013 was DKK 73.1MM (At year end 2012:
DKK 169.0MM) 
                                                                P/F Atlantic
Petroleum (OMX: FO-ATLA) today announces its results for the first three months
of 2013. 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 quarter performed at the upper end of the 2013
guidance, and good field performance on Chestnut has prompted the partnership
to look at potential options for extending the life of field beyond 2015. With
regards to development we completed and paid for the Orlando & Kells
acquisition and took the very important step to sanction Orlando for
development. This is the first AP field to be sanctioned since 2010. 

With regards to exploration the first quarter is marked by the UK Magnolia well
write down. Atlantic Petroleum's exploration programme carries on with the
potential very high impact ExxonMobil operated Dunquin well in Ireland
currently drilling, to be followed later in the year by the Centrica operated
Pegasus appraisal well in the UK Southern North Sea. We are also awaiting the
results of the 22nd Round in Norway which could bring further high quality
opportunities to our portfolio. 

The outcome of exploration is highly asymmetric. The downside is the well cost
to be written off. The potential upside is millions of barrels in new
reserves.” 



Highlights

  -- Revenue in 1Q 2013 DKK 121.7MM (1Q 2012 DKK 135.8MM). Average realised oil
     price was USD 112.5



  -- Production in 1Q 2013 amounted to 197,000 boe corresponding to an average
     of 2,190 boepd net to the Group



  -- Gross profit was 54.2MM



  -- EBIT DKK -1.0MM (1Q 2012 DKK 65.3MM)



  -- EBITDAX DKK 69.8MM (1Q 2012 DKK 104.4MM)



  -- General and administration costs 1Q 2013 DKK 15.1MM (1Q 2012 DKK 9.0MM)
     increase reflects the new office in Bergen on a pre-tax basis. The post-tax
     cost in Norway is 22% of the pre-tax cost.



  -- Finance gain 1Q 2013 DKK 13.7MM (1Q 2012 DKK 2.6MM) increase is due to
     exchange rate gains in USD/GBP



  -- Cash generated from operations in the first three months in 2013 was DKK
     60.8MM (1Q 2012 DKK 98.9MM)



  -- Cash and cash equivalents at end 1Q 2013 was DKK 73.1MM, (end 2012 DKK
     242.5MM). Cash and cash equivalents at 29th May 2013 were DKK 107.0MM



  -- Blackbird field production has been stable throughout the last quarter. The
     water injector drilled in late 2012 was commissioned and injection
     commenced in January



  -- The Chestnut field produced at stable rates at the high end of expectation.
     A reserve upgrade was taken in the end of year CPR report



  -- Production from the Ettrick field was relatively stable. The E9 infill
     production well is expected to spud in 2Q 2013 and is expected to come
     onstream 3Q or 4Q 2013



  -- The Sale and Purchase Agreement with Iona Energy Company (UK) Limited to
     acquire a 25% interest in the Orlando P1606 and Kells P1607 discoveries
     completed on the 20th February 2013. The Orlando field development was
     sanctioned by partners and has subsequently been approved by DECC (17th
     April 2013). Orlando will be the most significant project for the Group
     over the next three years. Following a thorough review of the project and
     dialogue with the operator the schedule is to have first oil in 2015 with
     expected initial production rates of 10,000+ boe gross



  -- Planning continues for a Perth field appraisal/ development well by
     operator Parkmead. The well could spud in late 2013 or early 2014 depending
     on rig availability



  -- The UK P1766 Magnolia prospect was drilled in 1Q but did not encounter
     hydrocarbons. The well was plugged & abandoned and DKK 35.2MM was expensed
     during the period as unsuccessful exploration cost



2013 Outlook

  -- Production for the year is expected to be in the narrower guidance range of
     725,000 - 800,000 boe, compared to the previous range of 700,000 - 800,000
     boe



  -- EBITDAX for the year is expected to exceed the current guidance range of
     DKK 200MM - DKK 250MM. New guidance is in the range DKK 225MM -  DKK 275MM



  -- Atlantic Petroleum has completed the acquisition of a 4% interest in the
     Irish Continental Shelf Frontier Exploration Licence (FEL) 3/04 from
     ExxonMobil where the potentially very high impact Dunquin well is currently
     being drilled



  -- The E9 Ettrick infill production well is expected to spud in June and to be
     completed in 2Q/3Q 2013



  -- Chestnut production is expected to be above initial expectations. The
     operator plans to implement technical and commercial improvements for
     maximizing recovery



  -- On the Perth field, plans will be finalized for the drilling of the
     appraisal / development well



  -- The UK Pegasus West well is planned to be drilled in 2013 and is expected
     to spud in 4Q



  -- The Group 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 1Q 2013 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 May, The
webcast/conference call will take place on Wednesday 29th May 2013 at the local
time stated below: 

            Copenhagen 12:00 noon

            London 11:00 AM

            Tórshavn 11:00 AM

            Reykjavik 11:00 AM

For investors and analysts wishing to ask the Group representative questions
the call-in details are as follows: 

DK: +45 70265040 or
UK: +44 2088179301

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. 25/2013

Issued 29-05-2013


         P/F Atlantic Petroleum
         Yviri við Strond 4, 3rd floor
         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:

1Q 2013 Condensed Consolidated Interim Report 31-03-2013.pdf