Tórshavn, Faroe Islands, 19th June 2007 - Further to the announcement on 8th June 2007, Atlantic Petroleum (OMX: FO-ATLA), the international upstream oil and gas company, is pleased to announce that it has signed a Farm out Agreement with Fox Energy Exploration Limited (‘Fox Energy', a subsidiary of Fox Petroleum Inc. www.foxpetro.com) to farm out a 16.66% interest in UKCS Blocks 14/9a and 14/14b (Licences P.1211 and P1288). The Licences are currently in the process of being merged by the Department of Trade and Industry. Under the farm out arrangements, Granby Oil and Gas plc (LSE: GOIL) is also farming out on the same basis, such that Fox Energy will acquire a 33.33% interest in the merged licence. Granby will remain operator of the licence and will retain a total 33.34% interest. A high resolution 2D seismic survey is currently being acquired over the licence area in order to confirm the prospect and to select a well location. In consideration of the assignment, which is subject to the consent of the Secretary of State for Trade and Industry, Fox Energy will pay 100% of the costs of the seismic survey. Atlantic Petroleum and Granby Oil and Gas have also granted Fox Energy an option to acquire an additional 26.67% of the licence after completion of the high resolution seismic processing by paying 46.67% of the costs of an exploration well (in addition to Fox Energy's 33.33% obligation), thereby carrying 10% of the well costs for each of Atlantic Petroleum and Granby Oil and Gas. In the event that the option is exercised by Fox Energy, Atlantic Petroleum and Granby Oil and Gas would each retain a 20% interest in the licence. The blocks contain Granby's ‘Anglesey' prospect which consists of a series of tilted Jurassic fault blocks. The blocks are located in around 130m water depth some 150 km north-east of St. Fergus and 30km north of the Claymore field. Participating Interests Following completion of the farm-out arrangements and the assignment of interests in the merged licence, the participating interests will be Granby Oil and Gas Plc (operator) 33.34%, Atlantic Petroleum 33.33% and Fox Energy Exploration 33.33%. Commenting on the farm-out Wilhelm Petersen, Managing Director of P/F Atlantic Petroleum said: “Atlantic Petroleum is pleased to welcome Fox Energy in this licence and looks forward to working with them. We are also pleased that the costs of the seismic acquisition and processing programme for this licence are fully carried, hence no cost to Atlantic Petroleum.” 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.
Atlantic Petroleum UKCS Blocks 14/9a, 14/14b Anglesey Prospect - Farm Out
| Source: P/F Atlantic Petroleum