Atlantic Petroleum P/F
Company Announcement

Chestnut FPSO contract and field life extended for another year

Tórshavn, Faroe Islands, 2014-05-15 14:03 CEST -- Atlantic Petroleum (NASDAQ OMX: ATLA DKK & Oslo Stock Exchange: ATLA NOK) 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 2017 (from the current March 2016) and thereby extend the Chestnut Field life by at least a further year.

CEO Ben Arabo commented “We are delighted that the Chestnut joint venture has been able to agree another contract extension with Teekay for the use of the Hummingbird FPSO. We continue to work with the joint venture to examine ways to even 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 two-year deal announced in November 2012, and another one-year deal announced in September 2013.

3) Atlantic Petroleum end 2013 CPR report attributed 1.1 million bbls net remaining 2P reserves, which is an increase from the previous year’s 0.7 million bbls net remaining 2P reserves.

Atlantic Petroleum in brief:

Atlantic Petroleum is a full cycle exploration and production (E&P) Group focused on North West Europe. Atlantic Petroleum currently holds 45 oil and gas licences in the UK, Norway, Faroe Islands, Ireland and the Netherlands, and has three fields in production in the UK part of the North Sea. In addition to this, the Group has one field under development with first oil expected in 2016, two additional potential development projects and a substantial number of exploration prospects. Atlantic Petroleum participates in joint ventures with 30 reputable, international partners. Atlantic Petroleum’s main office is located in Tórshavn, Faroe Islands, and the Company has subsidiaries and technical offices in London, UK and Bergen, Norway. Atlantic Petroleum’s existing shares are listed on NASDAQ OMX Copenhagen and on Oslo Stock Exchange.

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.23/2014

Issued 15-05-2014

         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