Atlantic Petroleum P/F
Company Announcement

Market Update

Tórshavn, Faroe Islands, 2015-12-17 12:32 CET -- The Board of P/F Atlantic Petroleum (NASDAQ OMX COPENHAGEN: ATLA DKK & Oslo Stock Exchange: ATLA NOK) note the announcement on 14 December 2015, by Nordic Trustee acting as trustee to Iona Energy’s 9.50% bondholders and calling for a bondholder meeting on 21 December 2015, to consider proposals in connection with potential transactions arising from Iona’s previously announced accelerated M&A process.

Atlantic Petroleum is pursuing a solution in parallel with Iona’s process and is in dialogue with a London based party regarding its 25% equity in the Orlando project.  Atlantic Petroleum expects to be able to provide a further market update next week. At this time, there is no certainty that a solution or a satisfactory outcome will be forthcoming for the Company and falling that, it is likely that the Company will go into administration or restructuring. The Company is continuing its planning for all outcomes.

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 29 oil and gas licences in the UK, Norway and Ireland, 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 P/F is based in Tórshavn, Faroe Islands, and the Company has subsidiaries and 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 550100 (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.37/2015

Issued 17-12-2015

         P/F Atlantic Petroleum
         Yviri við Strond 4
         P.O. Box 1228
         FO-110 Tórshavn
         Faroe Islands
         
         Telephone +44 208 834 1045
         Fax +44 208 834 1125
         Website: www.petroleum.fo
         E-mail: petroleum@petroleum.fo