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