Tórshavn, Faroe Islands, 22nd September 2008 - P/F Atlantic Petroleum (OMX: FO-ATLA) the international upstream oil and gas company, today announces that its first oil field, the Chestnut Field, has commenced production. Chestnut has been developed using the new Sevan Hummingbird floating production storage and offloading vessel (“FPSO”). Atlantic Petroleum holds 15% interest in UK Block 22/2a which contains the Chestnut Field. Commenting on the announcement, Wilhelm Petersen, Managing Director of Atlantic Petroleum, said: “Bringing the Chestnut Field onto production is a historic milestone for Atlantic Petroleum. This is the company's first field to commence oil production and we were one of the active partners to sanction the development. Atlantic Petroleum and its shareholders have been looking forward to this day, as it heralds the start of a new era in the company. Hence, it is an extremely valuable project for Atlantic Petroleum. As a producing oil company, new opportunities will be available to be pursued.” He continued, “utilising innovative new technology, Atlantic Petroleum and its partners have been able to unlock the potential of an oil field which was originally discovered twenty two years ago and represents a great team achievement by all parties involved.” Bringing the Chestnut Field onto production not only provides Atlantic Petroleum its first oil production but it is also noteworthy as it is one of the smallest stand alone oil field developments in the North Sea, illustrating the trend in oil exploration. The Hummingbird is the second Sevan 300 unit to be built and the first cylindrical FPSO to be deployed in the North Sea. It will stay on location until the Chestnut Field ceases production. The partnership has leased the FPSO for two and a half year and has options to extend the lease period up to an additional two years. Chestnut has recoverable reserves estimated at 1.4 million barrels of oil equivalent (“MMboe”) to Atlantic Petroleum and initial average production rates to Atlantic Petroleum are expected to be between 1,300 and 2,100 barrels of oil equivalent per day (“boepd”). The reserves and the production rates mentioned excludes production from South Chestnut. As earlier announced, a second Chestnut production well, South Chestnut, was spudded on 7th September 2008. If the well comes in as expected, it will be completed and tied-in during early 2009 and is expected to both significantly increase production rates, recoverable reserves and extend the field life. This second production well is expected to be drilled and brought onstream in less than nine months from the investment decision in May 2008. This announcement does not change the financial outlook for 2008 as earlier provided by the Company in its financial statement for the first half of 2008. Partners in the licence related to the Chestnut Field are Venture Production (operator): 69.875%, Bow Valley Petroleum: 15.125% and Atlantic Petroleum: 15.000%. Further information Further information can be obtained from Wilhelm Petersen, Managing Director, tel. +298 350 100 or mobile +298 550 100 (wilhelmp@petroleum.fo), or Teitur Samuelsen, Financial Manager, tel. +298 350 100 or mobile +298 550 103 (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 Issued 22-09-2008 Gongin 9 Fax +298 350 101 P.O. Box 1228 FO-110 Tórshavn Faroe Islands Telephone +298 350 100 Fax +298 350 101 Website: www.petroleum.fo ------------------------------------------------------------------------- Notes to Editors: Chestnut Field - The Chestnut Field is one of the oldest undeveloped oil fields in the North Sea having been discovered in 1986 - Chestnut lies approximately 180km east of Aberdeen in a water depth of 120m and is 13km south east of the Alba oil field - The Chestnut Field co-venturers are: • Venture Production plc (Operator) - 69.875% • Bow Valley Petroleum (UK) Limited - 15.125% • Atlantic Petroleum - 15.000% - Atlantic Petroleum acquired its 15% interest in the Chestnut Field in 2003 - FDP (Field Development Plan) approval for the Chestnut Field was obtained in late 2005 for a single production well development with water injector support - The production well ( 22/2a-11X) was drilled and tested at rates of between 10,000 and 15,000 barrels of oil per day (“bopd”) in 2001 by the previous operator - The extended well test lasted for approximately four months and around 1 million barrels of oil were produced before it was shut-in - The water injector well (22/2a-12) was drilled mid-2006 and showed pressure communication with the original production well Sevan Hummingbird - The Sevan Hummingbird floating production storage and offloading vessel (“FPSO”) was constructed at the Yantai Raffles Shipyard in China. The unit was then moved to Keppel Verolme Shipyard in Rotterdam, Holland, where the outfitting and assembly of the processing plant took place - The platform is a Sevan 300 FPSO with an oil storage capacity of 270,000 barrels. The unit can carry up to 3 risers and umbilicals and will have an oil processing capacity of 30,000 barrels of oil per day and a water injection capacity of 20,000 barrels of water per day Development Partners - Wood Group Engineering (North Sea) Limited have worked alongside Sevan Marine ASA and the Chestnut Partners to bring Chestnut on stream