Significant hydrocarbons encountered in Hook Head appraisal well in the Celtic Sea, Ireland

Tórshavn, Faroe Islands 10th September 2007 - Atlantic Petroleum (OMX:
FO-ATLA), the international upstream oil and gas company, announces that
Atlantic Petroleum and the SEL 2/07 partners have encountered significant
hydrocarbons in the 50/11-3 Hook Head appraisal well and are preparing to
commence a well flow test. 

The Providence Resources Plc operated 50/11-3 Hook Head appraisal well,
offshore Ireland, has successfully logged a total of 75 feet of net hydrocarbon
bearing reservoir. The well is located in 240 feet water depth, is c. 60 km
offshore Waterford and is situated in Standard Exploration Licence 2/07 in the
North Celtic Sea Basin. The well was drilled to a total depth of 4,880 feet
true vertical depth subsea. All geological horizons were encountered within the
pre-drill depth prognosis and significant oil and gas shows characteristic of
either a light oil or rich gas were encountered whilst drilling. 

Preliminary petrophysical analysis of electric wireline logs acquired over the
main Lower Cretaceous target indicates a 484 foot gross hydrocarbon bearing
interval. The reservoir zones are of equivalent age to those encountered in the
50/11-1 & 2 wells, located c. 2.5 km and c. 5 km to the south-west,
respectively. Initial analysis of the data suggests an overall improvement in
reservoir quality at the 50/11-3 location, with average porosities of 20%
within the main hydrocarbon bearing interval. In addition to the successful
appraisal of the accumulation, a number of further exploration objectives were
also logged as hydrocarbon bearing in the well. The plan is now to set a string
of casing prior to flow testing the well. 

Upon completion of drilling operations, the revised equity ownership in the
Hook Head discovery is Providence Resources Plc (Operator) 43.5294%, Challenger
Minerals (Celtic Sea) Limited 16.3235%, Dyas BV 16.3235%, Atlantic Petroleum
(Ireland) Limited 10.8824%, Forest Gate Resources Inc. 7.5%, Sosina Exploration
Limited 5.4412%. These revisions are subject to Ministerial approval. 


Commenting on the initial well results Wilhelm Petersen, Managing Director of
P/F Atlantic Petroleum said: 

“Atlantic Petroleum is extremely pleased with the results of the Hook Head
appraisal well to date and look forward to the forthcoming well test
operations.” 


About Hook Head

The Hook Head structure is a large anticline that was first drilled in 1971 by
Marathon. The IRL 50/11-1 well discovered hydrocarbons in five sandstone units
within the Lower Cretaceous. The well was not flow-tested due to severe
operational issues at the time. The IRL 50/11-2 appraisal well, drilled by
Marathon in 1975, was a delineation well at the down-dip edge of the structure.
Post-drill mapping by Marathon indicated that the crest of the structure is
located to the north-east of the IRL 50/11-1 discovery well. This mapping is
supported by the seismic data acquired by Providence and partners in 2006. The
IRL 50/11-3 appraisal well was drilled in a crestal location, some 2.5 km
northeast of the IRL 50/11-1 well. The operators pre-drill in-house volumetric
estimates suggested that the Hook Head discovery could contain prospective
resources of up to c.70 MMBO or 250 BSCFG REC 


Further Details
Further details can be obtained from Wilhelm Petersen, Managing Director, tel
+298 350 100 (wilhelmp@petroleum.fo) or Teitur Samuelsen, Financial Manager,
tel +298 350 100 (teiturs@petroleum.fo). This announcement will be available,
together with other information about Atlantic Petroleum, on the Company's
website: www.petroleum.fo. 


P/F Atlantic Petroleum
Gongin 9	Telephone           Telephone  +298 350 100
P.O. Box 1228	           Fax +298 350 101
FO-110 Tórshavn 	           Website: www.petroleum.fo
Faroe Islands