Annual Consolidated Financial Statements of P/F Atlantic Petroleum for 2006
The annual Consolidated Profit after taxation for 2006 was a loss amounting to DKK -8,102,710 and for the 4Q 2006 a loss amounting to DKK -1,464,102.
" P/F Atlantic Petroleum's consolidated profit after taxation for 2006 amounted to DKK -8,102,710, (2005: DKK -10,397,544). The consolidated profit after taxation for 4Q of 2006 amounted to DKK -1,464,102 (4Q 2005: DKK -7,320,722).
" The consolidated result before taxation for 2006 was DKK -8,088,880, (2005: DKK -10,389,362). The consolidated result before taxation for 4Q of 2006 was DKK -1,473,975, (2005: DKK-8,088,879).
" The consolidated operating profit for 2006 was DKK -11,466,685, (2005: DKK -11,805,224). The consolidated operating profit for 4Q 2006 was DKK -3,683,380, (2005 Q4: DKK -7,395,138).
" The Company's consolidated total assets amounted to DKK 361,416,965 at the end of 2006 (2005: DKK 109,925,934).
" The Company's total shareholders' equity amounted to DKK 296,676,942 at the end of 2006, (2005: DKK 99,337,034).
" The operating loss for 2006 is slightly higher than announced in the 3Q announcement where it was prognosed to approximately DKK 10 million. The reason is the continuing high activity level, which so far has resulted in the farm-in to the Irish discoveries.
" The Chestnut and Ettrick fields are expected to come on stream, as previously announced, in respectively second half of 2007 and first half of 2008. Atlantic Petroleum's development costs for the Chestnut Field are expected to be approximately DKK 58 million, compared to previously expected costs of DKK 45 million. Atlantic Petroleum's total development investments are expected to be approximately DKK 125 million in 2007
" The West Lennox discovery was appraised in the fall of 2005 by the drilling of an appraisal well. The results from the well are classified as "tight-hole". The partnership has decided to put the development of the West Lennox field on hold, until the Crosby prospect has been drilled. A site survey with additional seismic acquisition is planned for 2007 on Crosby and an exploration well is expected to be drilled in 2008. The reason for putting the development of West Lennox on hold is that the oil reserves are now estimated to be sub-commercial for an independent tie-in to the Lennox field, but commercial as a joint development.
" Atlantic Petroleum's investments in exploration costs in 2007 are budgeted to approximately DKK 30 million. These investments include the drilling of two exploration wells and the maturing of other prospects. The firmed budgeted investments are purely based on licences in Atlantic Petroleum's existing portfolio. These figures might change, which we expect, as the Company is for the time being considering various farm-in possibilities.
" The Faroese authorities have announced that the third licensing round will take place in the autumn of 2007. Atlantic Petroleum intends to participate in this licensing round and establishment of a partnership is under way.
Wilhelm Petersen, P/F Atlantic Petroleum's CEO:
"2006 was an extremely event full year for Atlantic Petroleum. We managed to achieve our goals, which was to prepare and fund the Company for further expansion. The Company became dual listed on OMX Copenhagen Stock Exchange, which gave access to new investors. Accordingly, the share capital was increased. This enables the Company to focus on further growth in terms of developing and maturing the existing asset base and carry out farm-ins to new licences or corporate acquisitions. On of these farm-ins, that was mentioned in the 3Q announcement, was realised in February 2007, when the Company expanded in to Ireland, by farming in to some promising discoveries. We see this farm-in as a very good deal, that can add significant value to our shareholders. Also other farm-in opportunities are underway and will hopefully be announced shortly.
