Atlantic Petroleum agrees to farm out to Nautical on Nemo oil discovery, Celtic Sea, Offshore Ireland

Tórshavn, Faroe Islands, 28th September 2010 - P/F Atlantic Petroleum
(OMX:FO-ATLA) announces that the Standard Exploration Licence (SEL) 2/07
licence partners have agreed to farm down up to 65% equity interest in the Nemo
heavy oil discovery to Nautical Petroleum plc. 

The Nemo heavy oil accumulation underlies the Ardmore gas field in SEL 2/07 and
is situated approximately 60 kilometers offshore Ireland in the North Celtic
Sea Basin in about 90 meters water depth. Discovered in 1974, this
approximately 16 degree API heavy oil accumulation is estimated by the operator
to have an in place resource potential of up to 230 MMBbls. 

In return for an initial 25% stake, Nautical will fund and carry out a focused
work programme on the development feasibility of the Nemo discovery. Nautical
has an option to increase its stake to 65% and assume operatorship should it
elect by the end of 2011 to drill an appraisal well on Nemo. Nautical is
currently involved in a number of similar heavy oil field developments in the
UK North Sea including the Kraken discovery, which it operates, and Mariner,
which is operated by Statoil. In addition, Nautical recently farmed into the
Baltimore heavy oil discovery in nearby block 48/19(p) where a development
feasibility study is ongoing. 

Atlantic Petroleum currently holds 18.3% interest in Nemo with operator
Providence (72.5%) and partner Sosina Exploration (9.2%). In the event that
Nautical exercises its option and drills a well, the participating interests
would be Nautical (65%), Providence (25.3%), Atlantic Petroleum (6.4%) and
Sosina Exploration (3.2%). The farm-out transaction is subject to Irish
governmental approval. 

Ben Arabo, Atlantic Petroleum's CEO, stated “We are pleased to be collaborating
with a company that has heavy oil expertise that will help unlock the potential
of the Nemo discovery and other heavy oil discoveries in the Celtic Sea.” 

Further Details:
Further details can be obtained from Ben Arabo, CEO, tel +298 350100
(ben.arabo@petroleum.fo). This announcement will be available, together with
other information about Atlantic Petroleum, on the Company's website:
www.petroleum.fo. 
On the website, it is also possible to sign up for the Company's e-mail
newsletter. 


Announcement no. 22/2010		                  Issued 28-09-2010

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