Atlantic Petroleum provides asset update and guidance for 2015


Tórshavn, Faroe Islands, 2014-12-17 08:00 CET (GLOBE NEWSWIRE) -- Atlantic Petroleum (NASDAQ OMX Copenhagen: ATLA DKK & Oslo Stock Exchange: ATLA NOK) is pleased to provide the market with an asset update and guidance for 2015.

Atlantic Petroleum expects a total production in 2015 of 560,000 boe (1,534 boe per day) from the UK continental shelf fields Blackbird, Ettrick and Chestnut.

Total capital expenditure for 2015 is expected to be around DKK 110 million, whereas DKK 80-85 million is related to production and development. A large proportion of this is related to the ongoing Orlando development project.

In light of the reduced oil price outlook, Atlantic Petroleum will reduce its near-term exploration activities. The expected exploration capex for 2015 is around DKK 25-30 million, a reduction of about 75% from 2014.

The Company expects operating expenditures of DKK 175 million for the full year 2015.

As a consequence, Atlantic Petroleum anticipates an EBITDAX in 2015 of between DKK 25 million and DKK 75 million in 2015 for average oil prices in the range of USD 70 to USD 90 per boe.

Gross interest bearing debt by year-end 2014 is expected to be DKK 58 million. The Company’s cash position at year end is expected to be around DKK 135 million which implies a net cash position of around DKK 80 million at year-end 2014 for Atlantic Petroleum.

 

Ben Arabo, CEO, commented:

“We are adapting to the market situation and are cutting costs in 2015 where we can. We are deferring near-term investments without compromising Orlando first oil in late 2016. Atlantic Petroleum is entering 2015 with a good cash position and low debt which is a strength in these uncertain times. The Company is still able to generate positive cash flow in a low price environment whilst preserving the value of our main assets. With the recent discovery of a high value gas asset (Pegasus West), we have improved commercial flexibility to capitalise on the value should we decide to do so.”

Please find attached a presentation with a summary and an asset update.

 

Atlantic Petroleum in brief:

Atlantic Petroleum is a full cycle exploration and production (E&P) Group focused on North West Europe. Atlantic Petroleum currently holds 37 oil and gas licences in the UK, Norway, and Ireland, and has three fields in production in the UK part of the North Sea. In addition to this, the Group has one field under development with first oil expected in 2016, two additional potential development projects and a substantial number of exploration prospects. Atlantic Petroleum participates in joint ventures with 30 reputable, international partners. Atlantic Petroleum’s main office is located in Tórshavn, Faroe Islands, and the Company has subsidiaries and technical offices in London, UK and Bergen, Norway. Atlantic Petroleum’s existing shares are listed on NASDAQ OMX Copenhagen and on Oslo Stock Exchange.

 

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.52/2014

Issued 17-12-2014

         P/F Atlantic Petroleum
         Yviri við Strond 4
         P.O. Box 1228
         FO-110 Tórshavn
         Faroe Islands
         
         Telephone +298 350 100
         Fax +298 350 101
         Website: www.petroleum.fo
         E-mail: petroleum@petroleum.fo


Attachments

52-2014 Asset update and 2015 Guidance.pdf