Tórshavn, Faroe Islands 22st June 2007 - Atlantic Petroleum (OMX: FO-ATLA) the
international upstream oil and gas company, today announced that it has signed
a mandate letter for a debt facility with the Bank of Scotland.
Atlantic Petroleum is currently increasing its activities, focusing on further
growth in terms of developing and maturing the existing asset base, and
carrying out farm-ins to new licences or corporate acquisitions. Major capital
spending for 2007 will be required for the Ettrick and Chestnut Field
developments.
To finance the increased capital spending associated with the company's growth,
Atlantic Petroleum is pleased to announce that it has agreed to the terms of an
US$50 million senior debt facility with the Bank of Scotland.
Atlantic Petroleum's debt position is anticipated to rise to peak levels before
being rapidly repaid from forecast cash flows generated from the predicted
production profiles. First production is anticipated from the Chestnut Field in
4Q 2007 and from Ettrick in first half 2008.
Commenting on the debt facility Wilhelm Petersen, Managing Director of P/F
Atlantic Petroleum said:
"This debt facility together with cash flow from the Chestnut and Ettrick
Fields will enable Atlantic Petroleum to pursue an expanding strategy with
financial flexibility to execute our business plan. The support from the Bank
of Scotland confirms belief in the economic viability of the company and the
credibility of Atlantic Petroleum's business strategy."
Atlantic Petroleum is an oil and gas exploration, development and production
company with operations in the Faroe Islands, United Kingdom and Ireland. The
shares of the Company trade on the OMX Nordic Exchange in Iceland and OMX
Copenhagen Stock Exchange under the symbol FO-ATLA.
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.
Issued 22-06-2007
P/F Atlantic Petroleum
Gongin 9 Telephone +298 350 100
P.O. Box 1228 Fax +298 350 101
FO-110 Tórshavn Website:www.petroleum.fo
Faroe Islands
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Atlantic Petroleum has agreed to terms of a debt facility
| Source: P/F Atlantic Petroleum