Atlantic Petroleum to Enter Next Phase at Faroes License

Atlantic Petroleum to Enter Next Phase at Faroes License

Tuesday, April 19, 2011
Atlantic Petroleum P/F

Atlantic Petroleum has approved the work program that enables Faroes License 014 to progress into the next exploration phase.

Following technical work over the last two years, and an assessment of the prospectivity of Faroes Licenses 013 and 014, the Company has decided to approve the work program that enables Faroes License 014 to progress into the next exploration phase.

The work carried out identified which areas should be retained and which had high impact exploration structures. Based on the studies, the southern area of the license 014 will be retained, which contains the Marselius structures. The northern part of License 014 will be relinquished as this area has no mapped structures. License 013 will also be relinquished in accordance with the license terms and conditions as the prospectivity on the blocks within this license is limited in Atlantic Petroleum's view.

The work commitment on License 014 consists of acquiring a new infill 2D seismic survey to complement the seismic data shot in 2006 and to create a pseudo 3D volume over the retained area. This work program will be carried out before January 17, 2013. Atlantic Petroleum holds 40% equity in License 014 while Sagex holds the remaining 60% and is the operator of the license.

Ben Arabo, CEO, commented, "Atlantic Petroleum is committed to exploration in the Faroe Islands, so in line with focusing on acreage with high impact potential we are pleased to be moving forward with License 014 where we hope to progress towards drillable prospects by January 2013. The further work on License 014 will compliment Atlantic Petroleum's active program on the Faroese shelf where technical work on Faroes License 016 is on-going and with a planned well to be drilled on License 006 this summer with partners Statoil and ExxonMobil."