Production, Gross Profit & EBITDAX increased from 1Q 2015 to 2Q 2015. Gross Profit and EBITDAX back in black.


Tórshavn, Faroe Islands, 2015-08-27 07:24 CEST (GLOBE NEWSWIRE) -- P/F Atlantic Petroleum (NASDAQ OMX: ATLA DKK & Oslo Stock Exchange: ATLA NOK) today announces its results for the second quarter of 2015. This company announcement should be read in conjunction with Atlantic Petroleum’s Condensed Consolidated Interim Report attached to this announcement.

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HIGHLIGHTS & OUTLOOK

 

Production for 2Q was 134,200 boe (1Q 2015: 106,000 boe) corresponding to an average of 1,475 boepd net (1Q 2015: 1,178 net) which results in an average of 1,327 boepd net for the first six months.

EBITDAX for 2Q was positive with DKK 7.7MM and contributed to reduce the total negative EBITDAX down to negative DKK 20.5MM for the first half of the year.

Gross profit also went from negative in 1Q 2015 to positive in 2Q 2015. Gross profit in 2Q 2015 was DKK 9.7MM (DKK -14.1MM in 1Q 2015).

Revenue for 2Q 2015 was DKK 76.5MM (1Q DKK: 39.1MM) and this was impacted by the lower than expected production and lower oil price. Net loss for 2Q 2015 was DKK 15.4MM and the net loss for 1H 2015 was DKK 27.1MM.

Cash and cash equivalents at end of 2Q 2015 was DKK 15.2MM. Cash and cash equivalents 25th August was DKK 62MM.

Net assets/shareholders equity is DKK 450.4MM.

G&A costs have been reduced significantly and are DKK 9.1MM in 2Q 2015 (DKK 12.1 in 1Q 2015).

The Pegasus West transaction with Third Energy Offshore Limited completed 31st July and will be accounted for in 3Q 2015 which will result in an extraordinary income of GBP 5.6MM (DKK 57.8MM) in 3Q 2015.

On the 3rd August Atlantic Petroleum announced that its Board of Directors has authorized the Company's management team to explore a broad range of strategic alternatives to further enhance shareholder value. Pareto Securities AS has been engaged as the Company's financial advisors in this process.

As part of the strategic review. Atlantic Petroleum will consider a full range of options in order to unlock the value underlying the Company's assets, including:

  • A sale or merger of the Company;
  • A sale, joint venture or partnership in respect of the Company's activities in the United Kingdom and/or Norway; or
  • Continuing to execute on the Company's strategy as an independent company.

The process is currently ongoing, and Atlantic Petroleum does not expect to update the market with any further information on the process unless and until its Board of Directors has approved a specific transaction or otherwise deems disclosure appropriate or necessary.

 

Ben Arabo, CEO commented:

“We have delivered a positive gross profit and EBITDAX in spite of a very challenging market environment. We have reduced our G&A significantly and will continue to focus on capital discipline. With the completion of the Pegasus deal 31st July we have demonstrated to shareholders that assets can be highly valued even in adverse market conditions. The review of strategic alternatives initiated will allow us to explore other options that can accelerate the realization of value for the benefit of our shareholders.”

 

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 P/F is based in Tórshavn, Faroe Islands, and the Company has subsidiaries and 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 550100 (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.28/2015

Issued 27-08-2015

 

 

         P/F Atlantic Petroleum
         Yviri við Strond 4
         P.O. Box 1228
         FO-110 Tórshavn
         Faroe Islands
         
         Telephone +44 208 834 1045
         Fax +44 208 834 1125
         Website: www.petroleum.fo
         E-mail: petroleum@petroleum.fo


Attachments

2Q 2015 Cond Cons Interim Report 30-06-2015 V.pdf 150827 Webcast slides Final.pdf