Atlantic Petroleum P/F
Company Announcement

Chestnut reserves upgrade and field life extended for another year

Tórshavn, Faroe Islands, 2013-09-09 10:59 CEST -- Atlantic Petroleum UK Limited today announces that Centrica Energy on behalf of the Chestnut joint venture (Licence P.354) has entered into a further agreement with Teekay Hummingbird Production Limited, to secure the use of the Hummingbird Spirit FPSO until end March 2016 and thereby extend the Chestnut Field life by at least a further year.

The contract extension comes on the back of significantly better than expected reservoir performance which indicates that the field will continue to produce at economic rates for at least another year beyond previous expectations. Work undertaken by Centrica Energy has increased the current estimate of recoverable reserves to around 18 million barrels.

CEO Ben Arabo said “We are delighted that the Chestnut joint venture has been able to agree this contract extension with Teekay. The excellent field performance and future projections have given us confidence to commit to securing the vessel for at least another year. We look forward to working with the joint venture to examine ways to further enhance the recovery from the Chestnut Field in the future.”

Notes:

1)         The Licence P.354 partners are Centrica (69.875% operator), Atlantic Petroleum UK Ltd (15%), Dana Petroleum (15.125%).

2)         The 12-month contract extension with Teekay follows a similar two-year deal in November last year, which secured the Hummingbird at Chestnut until March 2015.

3)         Atlantic Petroleum end 2012 CPR report attributed 0.7 million bbls net remaining 2P reserves, 16.15 million barrels gross ultimate recoverable reserves to Chestnut.

4)         The contract extension will also allow Atlantic Petroleum to upgrade its 2P reserves by 300,000-350,000 bbls net.

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.37/2013

Issued 09-09-2013

         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