Atlantic Petroleum – Pegasus update

Tórshavn, Faroe Islands, 2020-12-08 (GLOBE NEWSWIRE) -- P/F Atlantic Petroleum (NASDAQ Copenhagen: ATLA DKK & Oslo Stock Exchange: ATLA NOK) today announces that Hague and London Oil plc ("HALO") has decided to fully relinquish its equity participation in the Greater Pegasus Area in the UK Southern North Sea.

HALO’s decision to relinquish

HALO has today announced a decision to fully relinquish its equity participation in the Greater Pegasus Area in the UK Southern North Sea.

Atlantic Petroleum has an economic interest in the Pegasus West gas discovery and the adjacent areas. The economic interest arises from the sale of Atlantic Petroleum’s 10% interest in the Pegasus discovery to Third Energy Offshore, now HALO, in 2015 for a cash payment plus up to GBP 9.0MM in deferred milestone payments.

Atlantic Petroleum is reviewing the financial and legal effect of the decision by HALO to relinquish.

Mark Højgaard CEO said:

“If Atlantic Petroleum does not retain any rights in connection with the Pegasus area, it will mean a non-cash one off write down of approx. DKK 35MM. Atlantic Petroleum retains an economic interest in the Orlando filed in the UK Northern North Sea.”

Atlantic Petroleum in brief:

Atlantic Petroleum participates in oil and gas joint ventures with reputable, international partners. Atlantic Petroleum P/F is based in Tórshavn, Faroe Islands, and the Company currently has subsidiaries and offices in the UK. Atlantic Petroleum’s shares are listed on NASDAQ OMX Copenhagen and on the Oslo Stock Exchange.

Further Details:

Further details can be obtained from Mark T. Højgaard, (markh@petroleum.fo). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: www.petroleum.fo.

Announcement no.: 11/2020

Issued: 08-12-2020

P/F Atlantic Petroleum
Lucas Debesargøta 8
P.O.Box 1228
FO-110 Torshavn
Faroe Islands

Website: www.petroleum.fo