Atlantic Petroleum Plans Capital Expansion

Atlantic Petroleum is planning a capital expansion of DKr100 million at the start of the 2002 to raise funds to acquire interest in other producing licenses. The move is part of the company's strategy to participate in exploration and development off the Faroe Islands. This follows the announcement of a promising discovery on the Marjun prospect.

The tiny independent would also like to participate in exploration outside the Faroe Islands. Atlantic Petroleum has recently received authorization from the British DTI to operate and to acquire shares in producing licenses in British waters. Atlantic Petroleum managing director Wilhelm Petersen said: "Atlantic Petroleum's ambitions extend beyond the first licensing round in the Faroe Islands. Our plan for the company is to have three pillars to stand on. Besides participating in the activities here, we want to participate in exploration outside the Faroe Islands, and we have just been authorized by the UK Department of Trade and Industry to operate on British territory. "There, we are now ready, together with our partners from the Faroes Partnership, to participate in three licenses on the British side of the border in the area in which we are at present drilling the Marjun-1 well." Atlantic's application to participate in UK North Sea Blocks 176/20, 204/16 and 204/24 was approved earlier this year and plans are in place for exploration drilling to begin sometime in 2002.

Atlantic Petroleum was established in 1998. Since, the company has undertaken two share issues with the current share capital estimated at £3.9m, owned by more than 2,000 shareholders, including major companies and financial institutions based on the Faroe Islands.