Oil production update for 2009


Tórshavn, Faroe Islands, 29 January 2010 - P/F Atlantic Petroleum (OMX:
FO-ATLA) announces that net production in 2009 amounted to 510,000 boe (barrels
of oil equivalents) from the Chestnut field and 164,000 boe from the Ettrick
field, totalling 674,000 boe. This compares with the Company's guidance issued
on 6th November 2009 in connection with results for the first nine months of
2009, where total production for 2009 was estimated at the lower end of the
range of 700,000 to 740,000 boe. 

The lower than expected production in 2009 was caused by delayed commissioning
of the production facilities onboard the Ettrick FPSO, Aoka Mizu, and in
particular the gas compression system. In combination with limits on gas
flaring imposed by the British energy authorities, DECC, this restricted the
oil production from the Ettrick field. 

It should, however, be noted that the lower than expected production in 2009
does not impact the expected reserves or total production over the lifetime of
the Ettrick field. 

Total revenues amounted to DKK 219 million in 2009.

The financial results for 2009 and Atlantic Petroleum's outlook for the year
2010 will be announced on 26th February 2010. The Company will also announce an
update of its independent reserve verification as of 31st December 2009. 

An operational update for the three countries where the Company has operations
is set out below. In addition, Atlantic Petroleum will as per the second
quarter 2010 commence providing monthly updates regarding the Company's
production and operations. 

UK
Production from the Ettrick field is currently running at 1,100 boe per day net
to Atlantic Petroleum and is expected to increase to between 1,500 to 1,800 boe
per day in the near future. The field performance has been positive and is
expected to contribute significantly to the Company's cash flow in the coming
years. The drilling of additional production wells on the Ettrick field will
commence shortly. One well is a sidetrack of the 20/2a-E3 production well,
drilled in 2007 at a location near the eastern pinchout of the reservoir, which
will target a more favourable bottom hole location. It is expected that an
additional production well will be drilled in the northern part of the field.
Atlantic Petroleum has an 8.27% interest in the Ettrick field. 

The Blackbird discovery was made in 2008 and an appraisal well is being planned
for 2010. It is anticipated that development of the field can be initiated
later in the year, and be on production by late 2011 as a subsea tieback to the
Ettrick field. The resources for the Blackbird discovery are currently
estimated at around 1.1 million boe net to Atlantic Petroleum. 

Production of the Chestnut field is stable at around 1,300 boe per day. The
field has produced 4.6 million boe to date from two producers supported by one
water injection well. The field's performance has been very positive and is
expected to continue production for a further three to four years. Atlantic
Petroleum has a 15% interest in the Chestnut field. 

Different development scenarios for the Perth field are currently being
considered which would allow the field to come on stream by late 2012 to early
2013. The Perth accumulation is significant in size and is therefore expected
to have a long field life. Atlantic Petroleum has a 3.75% interest in the Perth
field and net resources are currently estimated at around 1 million boe. 
 
Following the dry well drilled on the Crosby prospect in 2009, the Company is
planning to relinquish the license interests in the East Irish Sea later in
2010. 

Ireland
In Ireland, the focus for 2010 will be to investigate potential commerciality
of the Hook Head and Helvick discoveries. The decision last year to write off
incurred exploration expenses were due to a downgrade of the perceived
commerciality of the fields based on traditional development schemes. Together
with our partners Providence and Sosina, the current focus is on investigating
alternative solutions with third party contractors for developing the resources
with less capital and operating expenditures. Atlantic Petroleum has an 18.33%
interest in these discoveries. 

Faroe Islands
Licenses 013 and 014 have been extended to January 2011 to complete additional
seismic processing work, with an option for further extension. In this period
the partnership will seek to farm out part of the equity to other parties.
Atlantic Petroleum has a 40% interest in L013 and L014. 

On License 016, the seismic data acquired in 2009 is currently being processed.
Interpretation of the seismic data during 2010 will dictate further exploration
work to be carried out on the licence. Atlantic Petroleum has a 10% interest in
L016. 

On License 006 negotiations are ongoing with the authorities to extend the
license. Atlantic Petroleum's share is 1% in this license. 

Further Details
Further details can be obtained from Sigurð í Jákupsstovu, CEO, tel +298 350
100 (sigurdj@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. 

About Atlantic Petroleum
Atlantic Petroleum is a Faroese independent exploration and production (E&P)
company with oil and gas interests in the North Sea, East Irish Sea and Celtic
Sea and on the Faroese Continental Shelf. The Company has interests in 15
licences containing 28 fields, discoveries, prospects or leads. Furthermore,
Atlantic Petroleum has partnerships with 17 international oil companies
operating in North West Europe. Presently the Company engages in activities
ranging from exploration, through appraisal, to development and production.
Atlantic Petroleum's shares are listed on both NASDAQ OMX Iceland and NASDAQ
OMX Copenhagen. 

Announcement no. 2/2010		                              Issued 29-01-2010

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