P/F ATLANTIC PETROLEUM
ANNUAL AND
CONSOLIDATED
REPORT AND
ACCOUNTS
YEAR TO 31
ST
DECEMBER 2022
Faroese Company Registration No/VAT No: 2695/475653
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 2/71
CONTENTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
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March 2023 3/71
Performance Summary ............................................................................................................................ 4
Chairman’s Statement ............................................................................................................................ 5
Chief Executive Officer’s Statement ........................................................................................................ 6
2023 Outlook ........................................................................................................................................... 7
Atlantic Petroleum Group Structure ......................................................................................................... 7
Project Portfolio ....................................................................................................................................... 8
Development & Production ...................................................................................................................... 8
Exploration & Appraisal ........................................................................................................................... 8
Directors’ Report ...................................................................................................................................... 9
Statement by Management on the Annual and Consolidated Report and Accounts ............................ 20
Independent Auditor’s Report ................................................................................................................ 21
Consolidated Financial Statements ....................................................................................................... 26
Consolidated Income Statement ........................................................................................................... 27
Consolidated Statement of Comprehensive Income ............................................................................. 28
Consolidated Statement of Financial Position ....................................................................................... 29
Consolidated Statement of Changes in Equity ...................................................................................... 30
Consolidated Statement of Cash Flows ................................................................................................ 31
Notes to the Consolidated Accounts ..................................................................................................... 32
Parent Company Income Statement ..................................................................................................... 56
Parent Company Statement of Comprehensive Income ....................................................................... 57
Parent Company Financial Position ...................................................................................................... 58
Parent Company Statement of Changes in Equity ................................................................................ 59
Parent Company Cash Flow Statement ................................................................................................ 60
Parent Company Notes to the Accounts ............................................................................................... 61
PERFORMANCE SUMMARY
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KEY METRICS
3 months
to 31
st
Dec
Full year
Full year
2022
2022
2021
DKK 1,000
Income statement
Revenue
0
0
0
Impairment on producing assets
0
0
0
Gross loss/profit
0
0
0
Exploration expenses
0
0
0
Earning before interest, tax, depreciation, amortization
and exploration expense (EBITDAX)
-4.028
15.404
8.955
Operating profit/loss (EBIT)
-4.028
15.404
8.955
Depreciations
0
0
0
Profit/Loss before taxation (EBT)
-7.206
348
3.149
Profit/Loss after taxation
-7.206
348
3.149
Financial position
Non-current assets
36.498
36.498
39.192
Current assets
16.680
16.680
2.268
Total assets
53.178
53.178
41.460
Current liabilities
127.893
127.893
88.033
Non-current liabilities
23.621
23.621
49.600
Total liabilities
151.514
151.514
137.633
Net assets/Equity
-98.336
-98.336
-96.173
Cash flow and cash
Cash provided by operating activities
10.569
-148
-3.603
Change in cash and cash equivalents
-72
2.766
-2.303
Cash and cash equivalents
65
65
17
Bank debt – excluding drawdown
59.438
59.438
59.438
Share related key figures
Earnings per share Basic
-1,95
0,09
0,85
Earnings per share Diluted
-1,95
0,09
0,85
Share price in DKK on OMX CPH and Oslo Stock
Exchange
6,96
6,96
4,51
CHAIRMAN’S STATEMENT
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Improved Outlook in 2023
Following a successful workover performed by the operator production on the UK Orlando field
recommenced in Q3 2022.
Production rates for the remainder of 2022 were 4,000 – 5,000 barrels of oil per day.
Atlantic Petroleum receives a 2% revenue share in deferred consideration from the Orlando field
production up to the first 5MM barrels of Orlando production. Thereafter the deferred consideration
increases to 4.35% of the sales proceeds. The deferred consideration receivable is now valued at
DKK 53.0MM.
Recommencement of oil production from the Orlando field was an important milestone for
Atlantic Petroleum. The expectation is that the field will produce at stable rates in 2023
A steady source of revenue is a pre-requisite to achieve a solution to the Company debt, which is still
the Board’s main priority.
The activity level in Atlantic Petroleum has been kept to a minimum in the period without cashflow
to limit costs as much as possible. The G&A cost for the year 2022 was DKK 1.6MM.
The oil price has been relatively high in 2022 due to high demand in the marked and partly due to
unrest caused by the war in Ukraine.
The Company expects to be cash generating in 2023 if operations on the Orlando field proceed as
planned. The total debt is expected the decrease in 2023.
There is still uncertainty regarding the Going Concern status of the Group. The ability of the Group to
continue as a going concern is dependent on a debt solution on the bank debt and the convertible
debt. Although the outcome on a potential debt solution is uncertain, the Board believes that a solution
is possible.
For this reason, the accounts have been prepared on a going concern basis.
In the event that the Group is unable to continue to trade, significant downward adjustments would
be required to the fair value of the Group’s economic interest in the Orlando asset to present the
value of these assets on a break up basis.
Ben Arabo
Chairman of the Board
31
st
March 2023
CHIEF EXECUTIVE OFFICER’S STATEMENT
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The year 2022 was another challenging year for Atlantic Petroleum. Further production interruption on
the Orlando field led to delay in cash flow from the Field. Cash flow was previously expected to
commence early in 2022 but with the development on the Orlando field it did not commence until
towards the end of 2022.
During 2022 the Company has continued to reduce overhead costs to create a very low-cost base.
General and administration costs in 2022 were DKK 1.6MM which is significantly lower than the
general and administration cost in 2021 of DKK 2.0MM.
The main focus is to get a solution on the bank debt from Betri Banki and the convertible debt from
London Oil and Gas in Administration.
The Group has prepared financial projections for 2022 to quantify available cash to meet the Group’s
general and administrative costs, interest costs and working capital commitments. The Group expects
to be cash flow positive in 2022.
The Orlando field production initially commenced in March 2019. Production proved significantly lower
than the expected. Therefore expected cashflow in 2020 and 2021 did not materialise. Further
challenges and production issues delayed production in 2022, however the Orlando field is now
producing and the Group is cash generating as of September 2022.
The deferred consideration receivable is now valued at DKK 53.0MM. Further details on the deferred
consideration receivable from the sale of Orlando is included in note 19 to the consolidated accounts.
There is uncertainty regarding the going concern status of the Group. The ability of the Group to
continue as a going concern is dependent on a debt solution on the bank debt and the convertible
debt. Although the outcome on a potential debt solution is uncertain, the Board believes that a solution
is possible. For this reason, the accounts have been prepared on a going concern basis.
In the event that the Group is unable to continue to trade, significant downward adjustments would be
required to the fair value of the Group’s economic interest in the Orlando asset to present the value of
these assets on a break up basis.
Mark T. Højgaard
CEO
Tórshavn 31
st
March 2023
ATLANTIC PETROLEUM GROUP STRUCTURE
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Production from the Orlando field is expected to produce stable cash flow in 2023 to further efforts to refinance
the Company. A solution on the bank debt and the convertible loan facility from London Oil and Gas in
Administration is the main priority in 2023.
Production albeit lower than initially expected is now generating cash to Atlantic Petroleum. Orlando was
expected to deliver around 10,000 bopd when developed, but actual production has been lower. Following a
successful workover production recommenced in Q3 2022 and is expected to be stable in 2023.
Pending a debt solution, the Group will be actively pursuing growth through participation in production or near
production assets in low political risk countries in the Northern Hemisphere.
The Atlantic Petroleum Group comprises the Faroes based parent company P/F Atlantic Petroleum and its
tree 100% owned subsidiaries in UK and Ireland.
P/F Atlantic Petroleum is listed on NASDAQ OMX Copenhagen under the ticker ATLA DKK.
P/F ATLANTIC PETROLEUM
Faroe Islands
ATLANTIC PETROLEUM UK Ltd
United Kingdom
ATLANTIC PETROLEUM
(IRELAND) Ltd
Republic of Ireland
ATLANTIC PETROLEUM NORTH
SEA Ltd
United Kingdom
EXPLORATION & APPRAISAL
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SECURING REMAINING VALUE
The strategy for 2023 will be to pursue near production or production opportunities in low political risk countries
in the Northern Hemisphere.
As of January 1
st
2023 the status of Group assets is:
Country
License
Field/Discovery/Prospect
Company
Equity
Comments
Ireland
SEL 2/07
Hook
Head/Dunmore/Helvick
AP I
18.33%
Comerciality being
reassessed
PRODUCING ASSETS
The Group does not hold producing assets. The Group received a revenue share of 2% from the UK Orlando
field, increasing to 4.35% when gross field production reaches 5MM barrels.
DEVELOPMENT & NEAR DEVELOPMENT
The Group holds no Development or near Development assets.
Atlantic Petroleum has no exploration activity planned for 2022 and does not consider exploration a fiscally
acceptable risk fo the Group in the near future.
DIRECTORS’ REPORT
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DIRECTORS’ REPORT - CONTINUED
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Financial Review
Going Concern
It was announced on the 22nd of March 2019 that LOG has entered into administration (an insolvency term
within the United Kingdom) and will not advance further funds under the facility agreement.
The terms of the LOG facility restrict Atlantic Petroleum from seeking alternate funding, however these
restrictions have been lifted by LOG’s administrators. Subsequently Atlantic Petroleum has secured a bridging
loan of DKK 7.5MM which has not been fully drawn.
A full solution on the debt situation has not been achieved, but it remains the priority in 2023.
The Orlando field production commenced in March 2019. Initial production proved significantly lower that the
expected 10,000 bopd and were intially around 2,500 bopd. Due to issues with the completion equipment in
the Orlando well, production was unstable and were shut in since Q4 2021. A workover was carried out in the
third quarter of 2022. Production has since recommenced in Q3 2022. Production rates were as expected
4,000 – 5,000 bopd for the remainder of 2022.
The Board is of the opinion that a resolution on debt is the first step to address the deficiency in shareholders’
funds. The Board intends to assess the need for additional equity once the debt situation is clearer, or
potentially do so in combination with a debt resolution.
Nevertheless, the Company, its Board and Management are confident that a solution with regards to the facility
provided by LOG and a solution on the bank debt can be achieved. This, combined with the expectation of
positive cash flow from Orlando in 2023, means that the Board is of the view that the Company can proceed
as a going concern business with shareholder value preserved.
The financial projections for 2023 indicate that the Company, dependant on Orlando field performance, does
not require additional funding in 2023. However, a solution on the bank debt and the convertible debt is
required.
The deferred consideration receivable on the Orlando field is currently valued at DKK 53.0MM.
Reserves are based on the information in Tailwind Energy Chinook Ltd (the operators) annual accounts 2021.
Based on this the reserves are estimated to 6.1 MMBbl.
On 20th December 2022 Serica Energy plc (AIM:SQZ) announced it had entered into an agreement to acquire
the entire issued share capital of Orlando operator Tailwind Energy Investments Ltd
Further details on the deferred consideration receivable from the sale of Orlando is included in note 14.
There is material uncertainty regarding the going concern status of the Group. The ability of the Group to
continue as a going concern is dependent on getting a solution on the debt.
Dialogue with LOG and Betri Banki is ongoing and although the outcome is uncertain, the Directors believe
that the matter can be resolved so that the Group will be able to meet its obligations. For this reason, the
accounts have been prepared on a going concern basis.
In the event that a debt solution is not forthcoming, and the Group is unable to continue to trade, significant
downward adjustments would be required to the fair value of the Group’s economic interest in the Orlando
asset to present the value of the asset on a break up basis.
DIRECTORS’ REPORT - CONTINUED
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Consolidated Income Statement
The result after tax for 2022 was a net profit of DKK 0.3MM (2021: profit of DKK 3.1MM).
The Group had a gross profit of DKK 0MM in 2022 (2021: Gross profit of DKK 0MM).
Exploration expenses amounted to DKK 0.0MM in 2022 (2021: DKK 0.0MM).
General and administration costs amounted to DKK 1.6MM in 2022 (2021: DKK 2.0MM).
Profit before taxation was DKK 0.3MM in 2022 (2021: Profit of DKK 3.1MM).
Total shareholders’ equity amounted to DKK -98.3MM at the end of 2022 (2021: DKK -96.2MM).
Net cash provided from operating activities amounted to DKK -0.1MM in 2022 (2021: DKK -3.6MM).
Cash and cash equivalents totaled DKK 0.1MM at the end of 2022 (2021: DKK 0.0MM).
Consolidated Statement of Financial Position
Total assets at the end of 2022 amounted to DKK 53.2MM (2021: DKK 41.5MM).
Consolidated Assets
Exploration and evaluation assets amounted to DKK 0 at the end of 2022 (2021: DKK 0MM).
Development and production assets amounted to DKK 0MM at the end of 2022 (2021: DKK 0MM).
Trade and other receivables were DKK 16.6MM at the end of 2022 (2021: DKK 2.3MM). All trade and other
receivables are due within one year except for the Orlando deferred consideration DKK 53.0MM, of which DKK
16.5MM is expected to be due within one year.
Cash and cash equivalents were at DKK 0.1MM at the end of 2022 (2021: DKK 0.0MM).
Consolidated Liabilities
Total liabilities amounted to DKK 151.5MM at the end of 2022 (2021: DKK 137.6MM).
Total current liabilities totalled DKK 127.9MM at the end of 2022 (2021: DKK 114.0MM).
Short term bank debt amounted to DKK 59.4MM (2020: DKK 59.4MM). Trade and other payables amounted
to DKK 64.8MM (2021: DKK 50.7MM).
Tax payable totalled DKK 3.6MM at the end of 2022 (2021: DKK 3.8MM)
Total non-current liabilities amounted to DKK 23.6MM at the end of 2022 (2021: DKK 23.6MM).
Deferred tax liability totalled DKK 0.0MM at the end of 2022 (2021: DKK 0.0MM)
Non-current liabilities also consist of long term provision for abandonment costs of three wells in Ireland.
Consolidated Equity
The total shareholders’ equity amounted to DKK -98.3MM at the end of 2022 (2021: DKK -96.2MM).
Cash Flow
Net cash provided from operating activities amounted to DKK -0.1MM (2021: DKK -3.6MM).
Capital expenditures in the period were DKK 2.9MM (2021: DKK -3.6MM).
DIRECTORS’ REPORT - CONTINUED
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Net Cash Position
At the start of 2022, the net cash position, amounted to DKK 0.0MM. At year end 2022 this had increased to a
net cash position of DKK 0.1MM
Significant Events after the Balance Sheet Date
No significant events after Balance Sheet date
Risk Management
Evident from the preceding pages of this year’s report, the challenges seen since 2015 have resulted in a
stronger basis from which the Group can operate. However, this is clouded by the status of London Oil and
Gas and its ability to honour its funding commitments. The Board will pursue an alternative arrangement to fill
the future funding requirements alongside projected revenues in order to protect shareholder value.
Atlantic Petroleum is typically exposed to a number of different market and operational risks arising from core
business activities. The risks can be internal as well as external in nature.
Market risks also include changes in currency exchange rates and interest rates. The changes can affect the
value of the assets, liabilities and future cash flows.
Foreign currency
The Group reports in DKK, which means exchange rate exposure related to USD, GBP and EUR. Operational
currency risks relate to oil sales, gas sales and operating costs. On the investment side, the Group is also
exposed to fluctuations in USD, GBP and EUR exchange rates as the Group’s most material investments in
oil and gas assets are made in these currencies.
Credit risk
Where Atlantic Petroleum has sums deposited in short-term bank accounts in USD, GBP, and DKK there may
be a currency and a credit risk attached to such cash balances (bank deposits).
Operational risk
Through its core business Atlantic Petroleum may become exposed to operational risk including the possibility
that the Group may experience, among other things, a loss in oil and gas production or an offshore catastrophe.
The Company works with and will monitor operators and partners to ensure that HSE and asset integrity are
given the highest priority. The Group also has an insurance programme in place to cover the potential impact
of any catastrophic events.
Atlantic Petroleum has traditionally operated in the, United Kingdom, the Republic of Ireland and the political
climate in these countries is perceived as being stable.
Insurance
The Group had in place an insurance package covering equipment, subsurface facilities and operation and as
and when required, the Group had insurance cover on offshore pollution and third party liability.
In view of the Company having relinquished its last operational license in the UK and as the licenses in Irish
waters are not yet subject to appraisal or development the Company has, as a cost reducing level and based
on advice, decided to suspend the above elements of its programme.
The Company does however continue to hold coverage that includes business interruption coverage, covering
a proportion of the cash flow arising from revenue producing fields.
The Group is confident that its insurance policies cover the overall insurance requirement of the current
business and provides insurance cover for the Group’s general and standard risk exposure in relation to
property damage, personal injury and liability.
DIRECTORS’ REPORT - CONTINUED
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Corporate Social Responsibility
Corporate Social Responsibility (CSR) Policy
Atlantic Petroleum’s culture and operating activities are conducted with a high priority for ethical standards.
Being a responsible company in all of our operations is an integral part of Atlantic Petroleum and we continue
to implement high ethical and practical standards in all our activities.
Atlantic Petroleum is committed to the review and continuous improvement of corporate social responsibility
and environment, health and safety performance. To meet these commitments, we will operate in accordance
with the following principles:
• Conduct our business activity in compliance with the law.
• Act openly and honestly in business dealings.
• Comply with best practice in our corporate governance.
• Behave responsibly and with sensitivity to local communities in all areas where we operate.
• Provide sustainable benefits and avoid the creation of a dependency culture.
• Integrate CSR and EHS responsibility throughout our activities.
• Recognise that all parties working on Atlantic Petroleum’s behalf can impact our operation and
reputation and that we all share a common responsibility.
• Ensure, wherever possible, that our partners’ approach to CSR is compliant with our own standards.
• Monitor and review our CSR and EHS policies and procedures as appropriate to ensure suitability and
effectiveness.
• Use continuous assessment to ensure our CSR activities meet identified performance objectives.
DIRECTORS’ REPORT - CONTINUED
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Environment, Health and Safety (EHS) Policy
Atlantic Petroleum’s activities are undertaken with integrity, responsibility and respect for the environment and
the community in which these activities take place. This entails conducting operations in an ethically and
practically sound manner that minimises risks and places high priority on the safety of those involved in Atlantic
Petroleum’s oil and gas operations.
Atlantic Petroleum is committed to:
• Comply with all applicable Environment, Health and Safety (EHS) laws, regulations and standards and
to apply responsible standards where legislation is inadequate or does not exist.
• A systematic framework of hazard identification and risk assessment through which safe operations
can be managed.
• Develop effective EHS management systems to identify and manage risks associated with its activities
by focusing on risk avoidance and prevention.
• Establish accountability and responsibility for EHS within organisational line management.
• Provide training, equipment and facilities necessary to maintain a safe and healthy worksite.
• Practice pollution prevention and seek viable ways to minimize the environmental impact of operations,
reduce waste, conserve resources and respect biodiversity.
• Protect and minimise any harm to the environment in our oil and gas activities, and continuously focus
on improving our environmental procedures.
• Monitor and review our CSR and EHS policies and procedures as appropriate to ensure suitability and
effectiveness.
• Ensure that partners and contractors’ policies and activities are compliant with our own standards, and
recognise that all working on our behalf can impact our operation and reputation and that we all share
a common responsibility for our safety.
Shareholder Information
Atlantic Petroleum aims to maintain a regular dialogue with the shareholders through the formal channel of
stock exchange announcements, interim reports, annual reports, Annual General Meetings and presentations
to investors and analysts.
Group Board
Ben Arabo, Chairman
Mourits Joensen, Deputy Chairman
Mark T. Højgaard – Board Member
Management
Mark T. Højgaard, CEO
At year end 2022 Atlantic Petroleum was listed on NASDAQ OMX Copenhagen. Atlantic Petroleum was
delisted from trading on Oslo Stock Exchange in 2021 with the last of trading was 8
th
January 2021.
Trading in Atlantic Petroleum shares can be done by contacting:
• Members of NASDAQ OMX Copenhagen
• A stockbroker or a financial institution
NASDAQ OMX ticker: ATLA DKK
Bloomberg ticker: ATLA IR
Reuters ticker: FOATLA.IC
DIRECTORS’ REPORT - CONTINUED
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Financial calendar
• Friday 28th April: Annual General Meeting.
• Wednesday 31st May: 1st Quarter 2022 Condensed Consolidated Interim Report to be issued.
• Thursday 31st August: 2nd Quarter 2022 Condensed Consolidated Interim Report to be issued.
• Thursday 30th November: 3rd Quarter 2022 Condensed Consolidated Interim Report to be
issued.
Share Price 2022
P/F Atlantic Petroleum has its main listing on NASDAQ OMX Copenhagen. The year 2022 started with a share
price of DKK 4.51. The closing price at year end was DKK 6.96.
Further information about the Group is available on Atlantic Petroleum’s website www.petroleum.fo.
Please address enquiries related to the stock market and investor relations to:
Atlantic Petroleum
Tel.: + 298 591601
E-mail: petroleum@petroleum.fo
Auditors
The consolidated accounts for 2022 have been audited by JANUAR State Authorised Public Accountants P/F.
The financial statements of the subsidiary companies for the year ended 31
st
December 2022, Atlantic
Petroleum UK and Atlantic Petroleum North Sea were audited by Anderson Anderson & Brown LLP in
Aberdeen and Atlantic Petroleum (Ireland), for the year ended 31
st
December 2022, were audited by KPMG in
Dublin.
Results and Dividends
The Group’s result after taxation for the year amounted to a profit of DKK 0.3MM (2021: Profit of DKK 3.1MM).
Payment of a dividend is not proposed.
Shareholders Capital and Vote
The issued share capital in Atlantic Petroleum is DKK 3,697,860 consisting of 3,697,860 fully paid shares,
each with a nominal value of DKK 1.
Each share holds one vote and all shares have the same rights. For more details, please refer to the articles
of associations of the Parent Company which can be found on the Company’s website www.petroleum.fo.
Dematerialisation of paper shares
In October 2005, Atlantic Petroleum commenced dematerialisation of paper shares. All shares issued before
2004 (paper shares) have been called in for electronic registration. As at 31
st
December 2022, there were
paper shares in issue with the nominal value of DKK 6,665 The process to convert the shares into electronic
registration is scheduled to continue in 2023.
Distribution of Share capital
By year end 2022 Atlantic Petroleum had around 7,000 shareholders representing more than 30 countries.
The majority of the share capital was represented by Danish and Faroese investors.
DIRECTORS’ REPORT - CONTINUED
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Substantial Shareholders
At 31
st
December 2022, there were no shareholders listed according to §28 b in the Companies Act:
Any listed shareholder holds interests in excess of 5% of the issued ordinary share capital of the Parent
Company.
Director Profiles
Ben Arabo
Chairman of the Board of P/F Atlantic Petroleum
Ben Arabo has more than 20 years of
experience from the oil and gas industry. He
was the CEO of Atlantic Petroleum for 7 years
from 2010 – 2017. Before joining Atlantic
Petroleum in 2010 he worked for the American
independent oil and gas company Hess
Corporation for 14 years in various roles and
in various locations.
Ben Arabo has a MSc in International
Business
Number of shares held in Atlantic
Petroleum:
Holds directly and indirectly 2,451 shares at
year-end 2022 – no change in portfolio in
2022.
Mourits Joensen
Deputy Chairman of P/F Atlantic Petroleum
Mourits Joensen has more than 15 years of
commercial and financial experience from
various positions in financial management,
banking and statistics. He was the CFO of
Atlantic Petroleum 2010 – 2015. Prior to
joining Atlantic Petroleum he held the position
as Finance and Administration Manager of the
Faroese Employment Service Fund.
Mourits Joensen has a MSc in Economics and
a MBA in Business.
Number of shares held in Atlantic
Petroleum:
Holds directly and indirectly 334 share at year-
end 2022 – no change in portfolio in 2022.
Mark T. Højgaard
Board Member of P/F Atlantic Petroleum
Mark T. Højgaard has more than 20 years of
experience in auditing and accounting. Mark
T. Højgaard is licensed as Certified Public
Accountant in the Faroe Islands and serves
concurrently as CEO/Partner of
Grannskoðarastovan í Runavík Sp/f.
Mark T. Højgaard has a MSc in Business
Administration and Auditing.
Mark took up his position as CEO of Atlantic
Petroleum on 24th May 2019.
Number of shares held in Atlantic
Petroleum:
Holds no shares at year-end 2022 – no change
in portfolio in 2022.
As a matter of Corporate Governance the independence of the Directors is evaluated yearly.
All of the Board members are independent of the Company.
Board Meetings
In 2022, the Board of P/F Atlantic Petroleum held 13 board meetings, including tele meetings.
DIRECTORS’ REPORT - CONTINUED
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Management Profiles
Mark T. Højgaard
CEO of the Atlantic Petroleum Group
Mark T. Højgaard has more than 20 years of
experience in auditing and accounting. Mark T.
Højgaard is licensed as Certified Public
Accountant in the Faroe Islands and serves
concurrently as CEO/Partner of
Grannskoðarastovan í Runavík Sp/f.
Mark T. Højgaard has a MSc in Business
Administration and Auditing.
Mark took up his position as CEO of Atlantic
Petroleum on 24th May 2019.
Number of shares held in Atlantic Petroleum:
Holds no shares at year-end 2022 – no change in
portfolio in 2022.
Directors’ Interests and Remuneration
Beneficial interests of the Board of Directors holding office at the year-end, related parties and indirect holdings
of the Group are set out below:
There are no Board of Director beneficial interest of holding during the period.
The Board of Directors do not receive any share related compensation from the Group.
CEO’s Interests and Remuneration
Beneficial interests of the CEO holding office at the year-end, related parties and indirect holdings of the Group
are set out below:
There has been no CEO beneficial interest or holding during the period
Stock Exchange Announcements 2022
Please refer to www.petroleum.fo where the announcements to the stock exchanges can be read in full.
CORPORATE GOVERNANCE REPORT
As a Faroese registered company listed on NASDAQ OMX Copenhagen, Atlantic Petroleum is obliged to
comply with Faroese, Danish, securities law and stock exchange rules. The stock exchange rules require listed
companies to take a position on corporate governance recommendations on a “comply or explain” basis. As a
dual listed company, Atlantic Petroleum has chosen to base the corporate governance policy on the highest
standard and thus follows both the recommendations on NASDAQ OMX Copenhagen, with the exemptions
summarised below: Atlantic Petroleum has reviewed and implemented recent changes and recommendations
on Corporate Governance.
DIRECTORS’ REPORT - CONTINUED
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A summary of Atlantic Petroleum’s non-compliance procedure and recommendations are stated
below. Further information is available on the Company’s website, www.petroleum.fo
Openness and Transparency
Information and publication of information:
Because of the Group’s international operations, all information is published in English and, where required,
Faroese.
Retirement Age
The Supervisory Board has not found it necessary to lay down a retirement age for the Supervisory Board
members. The annual report contains information about the age of the Supervisory Board members.
Election Period
The members of the Supervisory Board are elected for 1 year at a time. Re-election is allowed. For the time
being there is no limit of how often Board members can be re-elected.
REMUNERATION OF THE MEMBERS OF THE SUPERVISORY BOARD AND THE EXECUTIVE BOARD:
Whilst the undernoted Group remuneration policies remain, they were in effect suspended throughout most of
2022 given the market conditions, the challenges facing the Group and the downsizing activities undertaken.
The key actions on remuneration in 2022 were, where-ever possible, to freeze management and staff salaries
and board fees, make no bonus award nor make any LTIP awards for 2022. Towards the end of 2022
remuneration of Board members was re-instated.
Remuneration Policy
Remuneration to the members of the Supervisory Board and the Executive Board is on the same level as
comparable companies in order to attract, retain and motivate the members of the Supervisory Board.
Remuneration Policy for Senior Executives of Atlantic Petroleum
Overall Aim
The aim of Atlantic Petroleum’s (the “Company”) Remuneration Policy for senior executives is to provide a
reward framework which ensures that key executives are appropriately attracted, retained and motivated and
which is fit for purpose in the markets in which the Company operates and where it and its peer groups are
listed.
Remuneration Strategy
The Company’s remuneration strategy is to provide a competitive remuneration package which rewards
Directors and employees fairly and responsibly for their contributions and aims to deliver superior remuneration
for superior performance.
The total reward package will consist of elements such as Salary, Annual Performance Bonuses, Long Term
Incentives and Pension Contributions and Other Benefits.
The guiding principles behind the setting and implementation of this policy are that:
Balanced
There should be an appropriate balance between fixed and performance-related elements and the provision
of equity over the longer-term and which focuses executives on delivering the business strategy;
Competitive
Remuneration packages should be sufficiently competitive taking into account the level of remuneration paid
in respect of comparable positions in similar companies within the industry;
DIRECTORS’ REPORT - CONTINUED
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
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March 2023 19/71
Equitable
There should be an appropriate level of gearing in the package to ensure that executives receive an
appropriate proportion of the value created for shareholders while taking into account pay and conditions
throughout the remainder of the Group and where the Company operates and is listed;
Risk-weighted
Remuneration should not raise environmental, social or governance risks by inadvertently motivating
irresponsible behaviour. More generally, the overall remuneration policy should not encourage inappropriate
operational risk; and
Aligned
Executives will be encouraged to build a meaningful holding in the Company to further align their interests with
those of shareholders.
The Remuneration Committee will review on an annual basis whether its remuneration policy remains
appropriate for the relevant financial year. Factors taken into account by the Remuneration Committee will
include:
• overall corporate performance;
• market conditions affecting the Company;
• the recruitment market in the Company’s sector;
• changing market practice; and
• changing views of institutional shareholders and their representative bodies.
Base Salary
One salaried staff was employed
Annual Performance Bonus
No bonuses were paid for the 2022 Financial Year.
Long Term Incentive Plans
No Longterm Incentive Plans existed during the 2022 Financial Year
Share Based Payments
No Share Based payments were made during the 2022 Financial Year
Additional Benefits
No additional benefits were applied during the 2022 Financial Year.
Non-Executive Directors Fees
The Non-Executive Director (“NED”) fees will be structured as follows:
• A base fee will be paid for carrying out day to day duties as an NED; and
• Additional fees will be provided for extra responsibilities, for example chairing the Audit, Nominations
or Remuneration committees.
Fees should be sufficiently competitive taking into account the level of remuneration paid to Non-Executives
in similar companies within the industry.
These policies were implemented in 2012 but are currently not active.
DIRECTORS’ REPORT - CONTINUED
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 20/71
The Management and Board of Directors have today considered and approved the Annual and Consolidated
Report and Accounts of P/F Atlantic Petroleum for the financial year 1
st
January 2021 to 31
st
December 2022.
The Annual Report has been prepared in accordance with International Financial Reporting Standards as
adopted by the EU, the financial reporting requirements of NASDAQ OMX in Copenhagen, the financial
reporting requirements of the Oslo Stock Exchange and additional Faroese disclosure requirements for annual
reports of listed companies.
In addition, in our opinion the approved the Annual and Consolidated Report and Accounts of P/F Atlantic
Petroleum for the financial year 1st January 2022 to 31st December 2022 with the file name
213800K4T6SRZ1RQDO38-2022-12-31-en.zip in all material aspects is prepared in accordance with ESEF
Regulation.
In our opinion, the accounting policies used are appropriate and the Annual and Consolidated Report and
Accounts give a true and fair view of the Group’s financial positions at 31
st
December 2021 as well as the
results of the Group’s activities and cash flows for the financial year 1
st
January 2022 to 31
st
December 2022.
Tórshavn 31
st
March 2023
Management:
Mark T. Højgaard
CEO
Board of Directors:
Ben Arabo Mourits Joensen Mark T. Højgaard
Chairman Deputy Chairman Director
INDEPENDENT AUDITOR’S REPORT
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
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March 2023 21/71
To the Shareholders of P/F Atlantic Petroleum
We have audited the Consolidated Financial Statements and the Parent Company Financial Statements of
Atlantic Petroleum P/F for the financial year 1 January to 31 December 2022 which comprise the income
statement and statement of comprehensive income, balance sheet, statement of changes in equity and notes,
including summary of significant accounting policies for the Group as well as for the Parent Company and cash
flow statement for the Group. Collectively referred to as the “Financial Statements”.
Qualified opinion
In our opinion, the Annual and Consolidated Financial Statements, except for the possible effects of the matter
described in the paragraph “Basis for qualified opinion” give a true and fair view of the Parent Company’s and
the Group’s financial position at 31 December 2022 and of the results of the Parent Company’s and the Group’s
operations and cash flows for the financial year 1 January to 31 December 2022 in accordance with
International Financial Reporting Standards as adopted by the EU and further requirements in the Danish
Financial Business Act.
Basis for qualified opinion
We have been unable to obtain the necessary up to date third party audit evidence to substantiate the
estimates made by the management regarding the deferred consideration receivable held at 31 December
2022 which is included in the balance sheet at 50,0 mDKK and relates to the production of the Orlando field.
These estimates have been disclosed in note 19 and are based on, and consistent with, information disclosed
by the Operator. Atlantic Petroleum is no longer a joint venture partner of the Orlando field and, therefore,
management are no longer party to the Operator’s recent reports and production models relating to the 2P
recoverable reserves and the future production profile.
As we are unable to substantiate the assumptions on which the valuation is based, we are unable to provide
an opinion on the deferred consideration receivable on the Orlando field, included in the line item Other
Receivables and trade and other receivables, and the possible effects hereof.
We conducted our audit in accordance with International Standards on Auditing (ISA’s) and the additional
requirements applicable in the Faroe Islands. Our responsibilities under those standards and requirements are
further described in the Auditor’s responsibilities for the audit of the Financial Statements section of our report.
Apart from the for possible effects of the matter described above in our “Basis for qualified opinion”, we believe
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified
opinion.
INDEPENDENT AUDITOR’S REPORT
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
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March 2023 22/71
Material uncertainty regarding Going Concern
As the board and management have stated in note 1.1 to the annual accounts, the group’s primary source of
funding, London Oil and Gas, is in administration.
As described in note 1.1, the group’s going concern status is depending on the groups ability to obtain positive
cash flow in the near future, of which the contingent receivables from Orlando field are a main factor. As we
are unable to to substantiate the assumptions regarding the valuation or timing of the future royalty payments
and there remains a significant uncertainty in this regard.
Further the Group’s Going Concern status is depending on whether the company can successfully renegotiate
the company’s debts, including a moratorium either alone or in combination with debt relief. The debt
negotiations are not concluded, and there is a material uncertainty relation to these negotiations.
Without qualifying our opinion, we emphasise, that these issues give reason for material uncertainty relating
to the group’s status as a going concern, and should they turn out unsuccessful, the Group may have to halt
operations, and further impairments on the company’s assets must be expected.
Independence
We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’
Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements in Denmark and
the Faroe Islands. We have also fulfilled our other ethical responsibilities in accordance with the IESBA Code.
Appointment
P/F Januar, løggilt grannskoðanarvirki were first appointed auditors of P/F Atlantic Petroleum on 10 May
1998, for the financial year 2004. We have been reappointed by shareholders on AGMs for an annual
engagement every year since.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the Financial Statements for 2022. During our audit we identified Going Concern and valuation of future
receivables from the Sale of Development Facilities as Key Audit Matters.
Our audit of Sale of Development Facilities, entered to the line item “Other Receivables”, led us to qualify our
opinion regarding value measurement of the deferred consideration receivable. Further we found it appropriate
to provide information regarding material uncertainty relation to the parent company’s and the Groups ability
to continue as Going Concern.
Hence do not provide information regarding Key Audit Matters and refer to the paragraphs “Basis for qualified
opinion” and “Material uncertainty regarding Going Concern” above.
Management’s responsibilities for the Financial Statements
Management is responsible for the preparation of consolidated financial statements that give a true and fair
view in accordance with International Financial Reporting Standards as adopted by the EU and further
requirements in the Danish Financial Business Act and for the preparation of Parent Company and Group
Financial Statements that give a true and fair view in accordance with the International Financial Reporting
Standards, and for such internal control as Management determines is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
INDEPENDENT AUDITOR’S REPORT
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
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March 2023 23/71
In preparing the Financial Statements, Management is responsible for assessing the Parent Company’s and
the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless Management either intends to liquidate the Group or
the Parent Company or to cease operations, or has no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with ISAs and the additional requirements applicable in the Faroe Islands will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the additional requirements applicable in the Faroes Islands,
we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the Financial Statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s and the Parent Company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by Management. Conclude on the appropriateness of
Management’s use of the going concern basis of accounting and based on the audit evidence
obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group’s and the Parent Company’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Group or the Parent Company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the Financial Statements, including the
disclosures, and whether the Financial Statements represent the underlying transactions and events
in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the Consolidated Financial Statements.
We are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
INDEPENDENT AUDITOR’S REPORT
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
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March 2023 24/71
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the Financial Statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Statement on Management’s Review
Management is responsible for Management’s Review.
Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any
kind of assurance opinion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review
and, in doing so, consider whether Management’s Review is materially inconsistent with the Financial
Statements or our knowledge obtained during our audit, or otherwise appears to be materially misstated.
Further it is our responsibility to consider whether the Management’s review provides the information required
under the international Financial Reporting standards as adopted by the EU.
Based on the work we have performed, in our view, Management’s Review is in accordance with the
Consolidated Financial Statements and the Parent Company Financial Statements, except for the possible
effects of our qualification in the paragraph “Basis for qualified opinion” above, and has been prepared in
accordance with the requirements of the International Financial Reporting Standards as adopted by the EU.
Report on compliance with the ESEF Regulation
As part of our audit of the Financial Statements we performed procedures to express an opinion on whether
the annual report of P/F Atlantic Petroleum for the financial year 1 January to 31 December 2022 with the
filename 213800K4T6SRZ1RQDO38-2022-12-31-en.zip is prepared, in all material respects, in compliance
with the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF
Regulation) which includes requirements related to the preparation of the annual report in XHTML formal and
iXBRL tagging of the Consolidated Financial Statements.
Management is responsible for preparing an annual report that complies with the ESES Regulation. This
responsibility includes:
• The preparing of the annual report in XHTML format;
• The selection and application of appropriate iXBRL tags, including extensions to the ESEF taxonomy
and the anchoring thereof to elements in the taxonomy, for all financial information required to be
tagged using judgement where necessary;
• Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements
presented in human readable format; and
• For such internal control as Management determines necessary to enable the preparation of an annual
report that is compliant with the ESEF Regulation.
Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material
respects, in compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a
INDEPENDENT AUDITOR’S REPORT
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
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March 2023 25/71
report that includes our opinion. The nature, timing and extent of procedures selected depend on the auditor’s
judgement, including the assessment of the risks of material departures from the requirements set out in the
ESEG Regulation, whether due to fraud or error. The procedures include:
• Testing whether the annual report is prepared in XHTML format;
• Obtaining an understanding of the company’s iXBRL tagging process and of internal control over the
tagging process;
• Evaluating the completeness of the iXBRL tagging of the Consolidated Financial Statements;
• Evaluating the appropriateness of the company’s use of iXBRL elements selected from the ESEF
taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy;
and
• Reconciling the iXBRL tagged data with the audited Consolidated Financial Statements.
In our opinion, the annual report of P/F Atlantic Petroleum for the financial year 1 January to 31 December
2022 with the file name 213800K4T6SRZ1RQDO38-2022-12-31-en.zip is prepared, in all material respects, in
compliance with the ESEF Regulation.
Tórshavn, 31. March 2023
Januar P/F
løggilt grannskoðanarvirki
State authorized Public Accountants
Company reg.no. 5821
Óli Joensen
State Authorised Public Accountant
CONSOLIDATED FINANCIAL STATEMENTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 26/71
CONSOLIDATED INCOME STATEMENT
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 27/71
For the year ended 31
st
December 2022
Full Year Full year
DKK 1,000
Note
2022
2021
Revenue 3 0
0
Costs of sales 4 0
0
Gross profit 0
0
Exploration expenses 0
0
Orlando/Pegasus deferred consideration 19 17,051
10,908
Pre-licence exploration cost 0
0
General and administration cost 6,7,8 -1,647
-1,954
Depreciation PPE and intangible assets 10 0
0
Other operating cost/income 9 0
0
Operating profit 3 15,404
8,955
Interest income and finance gains 5 0
-1
Interest expenses and other finance costs -15,055
-5,805
Profit before taxation 348
3,149
Taxation 11 0
0
Profit after taxation 348
3,149
Earnings per share (DKK):
Basic
0.09 0.85
Diluted
0.09 0.85
CONSOLIDATED INCOME STATEMENT OF COMPREHENSIVE INCOME
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 28/71
For the year ended 31
st
December 2022
Full Year Full year
DKK 1,000 2022
2021
Items that may be recycled in P/L:
Profit for the period 348
3,149
Exchange rate differences -2,512
2,035
Total comprehensive
Income/loss for the period -2,163
5,184
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 29/71
at 31
st
Dec
at 31
st
Dec
DKK 1,000
Note
2022
2021
Non-current assets
Intangible assets
14
0
0
Intangible exploration and evaluation assets
15
0
0
Tangible development and production assets
16
0
0
Property plant and equipment
17
0
0
Other receivables
19
36,498
39,192
Deferred tax asset
25
0
0
36,498
39,192
Current assets
Trade and other receivables
19
16,615
2,251
Cash and cash equivalents
24
65
17
16,680
2,268
Total assets
53,178
41,460
Current liabilities
Short term bank debt
21,24
59,438
59,438
Trade and other payables
20
64,814
50,727
Current tax payable
3,641
3,848
127,893
114,012
Non-current liabilities
Long term bank debt
21
0
0
Convertible loan facility
11,936
11,936
Long term provisions
23
11,685
11,685
Deferred tax liability
0
0
23,621
23,621
Total liabilities
151,514
137,633
Net assets
-98,336
-96,173
Equity
Share capital
26
3,698
3,698
Translation reserves
90,016
92,528
Retained earnings
-192,050
-192,399
Total equity shareholders´ funds
-98,336
-96,173
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 30/71
For the year ended 31
st
December 2022
Share
Translation
Retained
DKK 1,000
capital
reserves
earnings
Total
At 1
st
January 2021
3,698
90,493
-195,548
-101,357
LTIP awarded in the period,
net
0
0
0
0
Translation reserves
0
2,035
0
2,035
Result for the period
0
0
3,149
3,149
At 31
st
Dec. 2021
3,698
92,528
-192,399
-96,173
LTIP awarded in the period,
net
0
0
0
0
Translation reserves
0
-2,512
0
-2,512
Result for the period
0
0
348
348
At 31
st
Dec. 2022
3,698
90,016
-192,050
-98,336
CONSOLIDATED STATEMENT OF CASH FLOWS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 31/71
For the year ended 31
st
December 2022
Full year
Full year
DKK 1,000
2022
2021
Operating activities
Operating profit/loss
15,404
8,955
Other income
0
0
Impairment on exploration and evaluation assets
0
0
Relinquishment and disposal of licences
0
0
Depreciation, depletion and amortisation
0
0
Impairment on producing licences
0
0
Change in inventories
0
0
Change in trade and other receivables
-11,670
-10,701
Change in trade and other payables
14,088
369
Interest revenue and finance gain received
0
-1
Interest expenses and other finance cost
-17,970
-2,226
Income taxes
0
0
Net cash flow provided by operating activities
-148
-3,603
Investing activities
Capital expenditure
2,914
-3,579
Net cash used in investing activities
2,914
-3,579
Financing activities
Change in short term debt
0
2,220
Change in long term debt
0
2,660
Net cash flow provided from financing activities
0
4,880
Change in cash and cash equivalents
2,766
-2,303
Cash and cash equivalents at the beginning of the period
17
14
Currency translation differences
-2,718
2,305
Total cash and cash equivalents at the beginning of the period
-2,701
2,320
Cash and cash equivalents at the end of the period
65
17
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
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March 2023 32/71
Note 1.1 Going Concern
It was announced on the 22nd of March 2019 that LOG has entered into administration (an insolvencyterm
within the United Kingdom) and will not advance further funds under the facility agreement.
The terms of the LOG facility restrict Atlantic Petroleum from seeking alternate funding, however these
restrictions have been lifted by LOG’s administrators. Subsequently Atlantic Petroleum has secured a bridging
loan of DKK 7.5MM which has not been fully drawn.
A full solution on the debt situation has not been achieved, but it remains the priority in 2023.
The Orlando field production commenced in March 2019. Initial production proved significantly lowerthat the
expected 10,000 bopd and were intially around 2,500 bopd. Due to issues with the completion equipment in
the Orlando well, production was unstable and were shut in since Q4 2021. A workover was carried out in the
third quarter of 2022. Production has since recommenced in Q3 2022. Production rates were as expected
4,000 – 5,000 bopd for the remainder of 2022.
The Board is of the opinion that a resolution on debt is the first step to address the deficiency in shareholders’
funds. The Board intends to assess the need for additional equity once the debt situation is clearer, or
potentially do so in combination with a debt resolution.
Nevertheless, the Company, its Board and Management are confident that a solution with regards to the facility
provided by LOG and a solution on the bank debt can be achieved. This, combined with the expectation of
positive cash flow from Orlando in 2023, means that the Board is of the view that the Company can proceed
as a going concern business with shareholder value preserved.
The financial projections for 2023 indicate that the Company, dependant on Orlando field performance, does
not require additional funding in 2023. However, a solution on the bank debt and the convertible debt is
required.
The deferred consideration receivable on the Orlando field is currently valued at DKK 53.0MM.
Reserves are based on the information in Tailwind Energy Chinook Ltd (the operators) annual accounts 2021.
Based on this the reserves are estimated to 16.5 MMBbl.
On 20th December 2022 Serica Energy plc (AIM:SQZ) announced it had entered into an agreement to acquire
the entire issued share capital of Orlando operator Tailwind Energy Investments Ltd
Further details on the deferred consideration receivable from the sale of Orlando is included in note 19.
There is material uncertainty regarding the going concern status of the Group. The ability of the Group to
continue as a going concern is dependent on getting a solution on the debt.
Dialogue with LOG and Betri Banki is ongoing and although the outcome is uncertain, the Directors believe
that the matter can be resolved so that the Group will be able to meet its obligations. For this reason, the
accounts have been prepared on a going concern basis.
In the event that a debt solution is not forthcoming, and the Group is unable to continue to trade, significant
downward adjustments would be required to the fair value of the Group’s economic interest in the Orlando
asset to present the value of the asset on a break up basis.
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
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March 2023 33/71
Note 1.2 Corporate information
The consolidated financial statements of the Group, which comprise P/F Atlantic Petroleum, as the parent, and
all its subsidiaries, for the year ended 31
st
December 2022 was authorised for issue in accordance with a
resolution of the Directors on 31
st
March 2023.
P/F Atlantic Petroleum is a public limited company incorporated and domiciled in the Faroe Islands and listed
on the exchange NASDAQ OMX Copenhagen. The principal activities of the Company and its subsidiaries
(the Group) are Oil & Gas exploration, appraisal, development and production in the Faroe Islands, United
Kingdom, and Ireland. Financial statements for the Group’s ultimate parent are presented on the Group’s
website: www.petroleum.fo.
2.1 Basis of preparation
Accounting Convention
The Consolidated financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS) as endorsed by the Council of the European Union (EU) and the additional Danish
disclosure requirements according to the Faroese Company Accounts Act, the financial reporting requirements
of NASDAQ OMX Copenhagen for listed companies.
The accounting policies set out below have been applied consistently to all periods presented in these
consolidated financial statements.
The financial information has been prepared on a historical cost basis and fair value conventions on the basis
of the accounting policies set out below. The consolidated financial statements are presented in DKK and all
values rounded to the nearest thousand, except where othewise indicated.
Basis of Consolidation
The consolidated financial statements incorporate the financial statements of P/F Atlantic Petroleum and
entities controlled by P/F Atlantic Petroleum (its subsidiaries) made up at the end of each accounting period.
Control is achieved where P/F Atlantic Petroleum has the power to control the financial and operating policies
of an investee entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated income
statement from the effective date of acquisition or up to the effective date of disposal, as appropriate.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting
policies used into line with those used by other members of the Group.
Intra-group balances and any unrealised gains and losses or income and expenses arising from intra-group
transactions are eliminated in preparing the consolidated financial statements.
The interests in the subsidiaries are eliminated with the Parent Company’s proportionate ratio of the fair value
of the subsidiaries assets, liabilities and provisions measured at the date of acquisition or establishment of the
subsidiary.
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 34/71
2.3 Significant accounting judgements, estimates and assumptions
Estimation uncertainty
Determining the carrying amount of some assets and liabilities requires estimation of the effects of future
events on those assets and liabilities at the balance sheet date.
In the opinion of Atlantic Petroleum’s management, the following estimates and associated judgements are
material for the financial reporting:
• determination of underground oil and gas reserves. The assessment of reserves is a complex process
involving various parameters such as analysis of geological data, commercial aspects, etc., each of which is
subject to uncertainty. The assessment is material to the determination of the recoverable amount and
depreciation profile for oil and gas assets,
• determination of the recoverable amount and depreciation profile for production assets. Determination of the
recoverable amount is based on assumptions concerning future earnings, oil prices, interest rate levels, etc.,
each of which is subject to uncertainty. The depreciation profile has been determined on the basis of the
expected use of the production assets, and is consequently subject to the same risks relating to reserves,
future earnings, etc., as apply to the determination of the value of the production assets,
• determination of the deferred consideration receivable. The assesment is based on a production profile based
on 2P Reserves (mid-point on Operators 2018 revenue estimate and 2014 Competent Persons Report); and
Discount factor of 10% based on current cost of capital to the Atlantic Petroleum Group.
• determination of abandonment obligations. Provisions for abandonment obligations are subject to particular
uncertainty as far as concerns the determination of the costs associated with removal of the production assets,
and the timing of the removal,
• and assessment of contingent liabilities and assets.
The estimates applied are based on assumptions which are sound, in management’s opinion, but which, by
their nature, are uncertain and unpredictable. The assumptions may be incomplete or inaccurate and
unforeseen events or circumstances may occur. Moreover, the Atlantic Petroleum Group is subject to risks
and uncertainties that may cause actual results to differ from these estimates. Special risks for the Atlantic
Petroleum Group are described in the section Director’s Report under Risk Management.
Assumptions for forward-looking statements and other estimation uncertainties at the balance sheet date that
involve a considerable risk of changes that may lead to a material adjustment in the carrying amount of assets
or liabilities within the coming financial year are disclosed in the notes.
The Group’s intangible exploration and evaluation assets, amounts to DKK 0MM (2021: DKK 0MM) and the
Group’s development and production assets amounts to DKK 0MM at 31
st
December 2022 (2021: DKK 0MM).
The Group’s abandonment obligations as of 31
st
December 2022 amounts to DKK 11.7MM (2021: DKK
11.7MM).
2.4 Summary of significant accounting policies
Interest in Joint Ventures
A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic
activity that is subject to joint control.
Acquisitions of oil and gas properties are accounted for under the purchase method where the transaction
meets the definition of a business combination. Transactions involving the purchases of an individual field
interest, or a group of field interests, that do not qualify as a business combination are treated as asset
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
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March 2023 35/71
purchases, irrespective of whether the specific transactions involved the transfer of the field interests directly
or the transfer of an incorporated entity. Accordingly no goodwill and no deferred tax gross up arises, and the
consideration is allocated to the assets and liabilities purchased on an appropriate basis.
Proceeds on disposal are applied to the carrying amount of the specific exploration and evaluation asset or
development and production asset disposed of and any surplus is recorded as a gain on disposal in the income
statement.
Investments in joint ventures are recognised by proportionate consolidation at the share of the jointly controlled
assets and liabilities, classified by nature, and the share of revenue from the sale of the joint product, along
with the share of the expenses incurred by the jointly controlled operation. Liabilities and expenses incurred in
respect of the jointly controlled operation are also recognised.
Translation of Foreign Currencies
For each individual entity, which is recognised in the consolidated accounts, a functional currency is
determined in which the entity measures its results and financial position. The functional currency is the
currency of the primary economic environment in which the entity operates. Transactions in other currencies
than the functional currency are transactions in a foreign currency.
A foreign currency transaction is, on initial recognition, recorded in the functional currency, at the spot
exchange rate between the functional currency and the foreign currency on the date of the transaction.
At each balance sheet date receivables, payables and other monetary items in foreign currency are translated
to the functional currency using the closing rate.
Exchange differences arising on the settlement of monetary items or on translating monetary items, at rates
different from those at which they were translated on initial recognition during the period or in previous financial
statements, shall be recognised in the income statement under financial revenues and expenses.
On consolidation the results and financial position of the Group’s individual entities with different functional
currencies than the Group’s presentation currency (DKK) are translated into the Group’s presentation currency
using the following procedure:
• Assets and liabilities are translated at the closing rate at the date of the balance sheet.
• Income and expenses are translated at exchange rates at the dates of the transactions.
All resulting exchange differences are recognised directly in equity as a separate component of equity.
For practical reasons an average rate for the period that approximates the exchange rates at the dates of the
transactions is used.
Income Statement
Revenue
Revenue is recognised to the extent it is probable that the economic benefits will flow to the Group and the
revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or
receivable, excluding discounts, sales taxes, excise duties and similar levies. The Group assesses its revenue
arrangements against specific criteria in order to determine if it is acting as principal or agent. The Group has
concluded that it is acting as a principal in all of its revenue arrangements.
Sale of hydrocarbons is recognised when transfer of risk to the buyer has taken place. Sale of hydrocarbons
is measured at fair value and represents amounts receivable for goods and services provided in the normal
course of business, net of discounts, VAT and other sales related taxes.
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
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March 2023 36/71
Cost of Sales
Cost of sales comprises cost directly related to the operation of oilfields, cost of goods sold, depreciations,
lease payments and other costs related to the operation of producing oil fields. Rentals payable for assets
under operating leases are charged to the income statement on a straight-line basis over the lease term.
Impairment of development and production assets is also recognised here.
Pre-licence Exploration Cost
Pre-licence exploration expenses comprise cost incurred prior to having obtained the legal rights to explore an
area and other general exploration costs which are not specifically directed to a licence and economic use is
of less than a year.
Exploration Expenses
Exploration expenses comprise the cost of the impairment of exploration and evaluation assets and
relinquishment cost.
General and Administration Cost
Administrative expenses comprise employment costs to the management and administration, staff,
depreciations and other costs related to the general administration of the Group.
Financial Income and Expenses
Financial income and expenses comprise interests, currency differences, dividend income from investments
and amortisation of financial assets and liabilities.
Taxation
Income tax
Income tax expense represents the sum of the tax currently payable and deferred tax. The tax currently
payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income
statement because it excludes items of income or expense that are taxable or deductible in other years and it
further excludes items that are never taxable or deductible. The Group’s liability for current tax is calculated
using tax rates that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of
assets and liabilities in the financial statements and the corresponding tax bases used in the computation of
taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is
probable that taxable profits will be available against which deductible temporary differences can be utilised.
Such assets and liabilities are not recognised if the temporary difference arises from goodwill (or negative
goodwill) or from the initial recognition (other than in a business combination) of other assets and liabilities in
a transaction that affects neither the taxable profit nor the accounting profit.
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries,
and interests in joint ventures, except where the Group is able to control the reversal of the temporary
difference and it is probable that the temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be
recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled
or the asset realised.
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 37/71
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off corporation tax
assets against corporation tax liabilities and when they relate to income taxes levied by the same taxation
authority and the Group intends to settle its current tax assets and liabilities on a net basis.
Tax is charged or credited in the income statement, except when it relates to items charged or credited directly
to equity, in which case the deferred tax is also dealt with in equity.
Statement of Financial Position
Intangible Assets
Intangible Assets
Items of intangible assets are stated at cost less accumulated depreciation and impairment losses.
Depreciation is charged to the income statement under General and Administration costs item on a straight-
line basis over the estimated useful lives. The estimated useful lives are as follows:
Office equipment 3 – 10 years
Scrap value 0%
The residual value is reassessed annually.
Exploration and Evaluation Assets
The Group applies the successful efforts method of accounting for Exploration and Evaluation (E&E) costs,
having regard to the requirements of IFRS 6 Exploration for and Evaluation of Mineral Resources.
Under the successful efforts method of accounting all licence acquisition, exploration and appraisal costs are
initially capitalised at cost in well, field or specific exploration cost centres as appropriate, pending
determination. Expenditure, incurred during the various exploration and appraisal phases, is then written off
unless commercial reserves have been established or the determination process has not been completed.
The amounts capitalised include payments to acquire the legal right to explore, licence fees, cost of technical
services and studies, seismic acquisition, exploratory drilling and testing and other directly attributable cost.
Finance costs that are directly attributable to E&E assets are capitalised in accordance with IAS 23. In the
Parent Company these costs are expensed to the Income Statement.
Cost incurred prior to having obtained the legal rights to explore an area (pre-licence cost) are expensed
directly to the income statement under Pre-licence exploration cost as they have incurred.
E&E assets are not amortised prior to the conclusion of appraisal activities.
Intangible E&E assets related to each exploration licence/prospect are carried forward, until the existence (or
otherwise) of commercial reserves has been determined subject to certain limitations including review for
indications of impairment. Every year or if there otherwise are indications of impairment the assets will be
tested for impairment. Where, in the opinion of the Directors, there is impairment, E&E assets are written down
accordingly, through the Income Statement under Exploration Expenses.
If commercial reserves have been discovered and a field development plan has been approved by the
authorities, the carrying value of the relevant E&E asset is reclassified as a tangible asset, development and
production asset. Before the reclassification the asset will be tested for indications of impairment. If however,
commercial reserves have not been found, the capitalised cost are charged to the profit and loss account
under Exploration Expenses after conclusion of appraisal activities.
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 38/71
Tangible Assets
Development and Production Assets
Development and production assets are accumulated generally on a field by field basis and represent the cost
of developing the commercial reserves discovered and bringing them into production, together with the E&E
expenditures incurred in finding commercial reserves transferred from intangible E&E assets as outlined in the
accounting policy for E&E assets above.
The cost of development and production assets also includes the cost of acquisitions and purchases of such
assets, directly attributable overheads, finance costs capitalised, and the cost of recognising provisions for
future restoration and decommissioning. In the Parent Company finance costs are expensed to the profit and
loss account.
The net book values of producing assets are depreciated generally on a field-by-field basis using the unit-of-
production (UOP) method by reference to the ratio of production in the period and the related commercial
reserves of the field.
An impairment test is performed once a year or whenever events and circumstances arising during the
development or production phase indicate that the carrying value of a development or production asset may
exceed its recoverable amount.
The carrying value is compared against the expected recoverable amount of the asset, generally by reference
to the present value of the future net cash flows, derived from expected production of commercial reserves.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit
exceeds its recoverable amount. Impairment losses are recognised in the income statement under the relevant
item. The cash-generating unit applied for impairment test purposes is generally the field, except that a number
of field interests may be grouped as a single cash-generating unit where the cash flows of each field are
interdependent. An impairment loss is reversed only to the extent that the assets carrying amount does not
exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no
impairment loss had been recognised.
The depreciation and impairment are charged to the Income Statement under Cost of sales.
Decommissioning
Provision for decommissioning is recognised in full when the liability occurs. The amount recognised is the
present value of the estimated future expenditure. A corresponding tangible fixed asset is also created at an
amount equal to the provision. This is subsequently depreciated as part of the capital costs of the production
facilities. Any change in the present value of the estimated expenditure is reflected as an adjustment to the
provision and the fixed asset.
Property, Plant and Equipment
Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment
losses.
Depreciation is charged to the income statement under General and Administration costs item on a straight-
line basis over the estimated useful lives. The estimated useful lives are as follows:
Operating assets and office equipment 3 – 10 years.
Scrap value 0%
The residual value is reassessed annually.
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 39/71
Financial Instruments
Financial assets and financial liabilities are recognised in the Group’s balance sheet when the Group becomes
a party to the contractual provisions of the instrument.
Trade and Other Receivables
Trade and other receivables are recognised at amortised costs and are reduced by appropriate allowances for
estimated irrecoverable amounts.
Bank Deposits (Cash and Cash-Equivalents)
Cash and cash equivalent includes cash in hand and deposits held at call with banks with maturity dates of
less than three months.
Equity, Translation Reserve
The translation reserve comprises foreign exchange rate adjustments arising on translation of the financial
statements of foreign entities with a functional currency that is different from the presentation currency (DKK)
of Atlantic Petroleum Group.
Bank Borrowings
Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently
stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption
value is recognised in the income statement over the period of the borrowings. Borrowings are classified as
current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12
months after the balance sheet date.
Other Payables
Other payables are stated at their nominal value.
Provisions
Provisions are recognised when the Group has a present obligation as a result of a past event and it is probable
that the Group will be required to settle that obligation. Provisions are measured at the management’s best
estimate of the expenditure required to settle the obligation at the balance sheet date, and are discounted to
present value where the effect is material. Included in the item Provisions is provision for decommissioning
costs.
Segment Reporting
In the opinion of the directors the operations of the Group comprise one class of business, the production and
sale of hydrocarbons. Its primary segment reporting will be by geographical region.
Cash Flow Statement
The cash flow statement is prepared according to the indirect method and presents cash flow from operations,
investments and financing activities.
Cash Flow from Operating Activities
Cash flows from operating activities are presented using the indirect method, whereby the net profit or loss for
the period is adjusted for the effects of non-cash transactions, accruals, tax-payments and items of income or
expense associated with investing or financing cash flows.
Cash Flow from Investment Activities
Cash flows from investment activities comprises cash flows in conjunction with buying and selling entities and
activities, buying and selling intangible, tangible and other non-current assets and buying and selling securities
which are not recognised as cash and cash equivalents.
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 40/71
Cash Flow from Financing Activities
Cash flows from financing activities comprise the raising of new share capital and loans, amortisation on loans
and payment of dividends.
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 41/71
3 Geographical segmental analysis
4 Cost of sales
5 Interest income & expense and finance gain & cost
Full year Full year
DKK 1,000 2022
2021
Revenues by origin:
United Kingdom 0
0
0
0
Operating loss/profit by origin:
Faroe Islands -1,445
-1,469
United Kingdom 16,863
10,702
Norway 0
0
Other -13
-279
15,404
8,955
Full year Full year
DKK 1,000 2022
2021
Operating costs 0
0
Produced oil in inventory at market value 0
0
Amortisation and depreciation, PPE:
Oil and gas properties 0
0
Impairment 0
0
0
0
Full year Full year
DKK 1,000 2022
2021
Interest income and finance gain:
Short term deposits 0
-1
Time Value 0
0
Unwinding of discount on decommissioning provision 0
0
Exchange differences 0
0
0
-1
Interest expense and other finance cost:
Bank loan and overdrafts 11
2,225
Creditors 17,955
0
Time Value 0
0
Unwinding of discount on decommissioning provision 0
0
Others 3
0
Exchange differences -2,914
3,579
15,055
5,805
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 42/71
6 Auditors’ remuneration
Full year Full year
DKK 1,000 2022
2021
Audit services:
Statutory and Group audit, parent company auditor 125
145
Review of interim Financial Statements 0 0
Audit subsidiaries 175
173
300
318
Tax services:
Consulting and advisory services -110
0
-110
0
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 43/71
7 Employee cost
There remains one full time employee of Atlantic Petroleum.
* The Board of Directors' remuneration by person and the CEO's remuneration is disclosed in the Director's
Report - Directors' Interests and Remuneration.
** Staff numbers include Managers.
*** The notice of termination for the CEO is one month.
**** See also note Share based payments below.
Full year Full year
DKK 1,000 2022
2021
Staff costs, including executive directors:
Wages and salaries
Board of directors 18
0
Managing Director – CEO*** 25
0
Administration, technical staff and other emplyees
43
0
Share based payment – LTIP accounting charge****:
Managing Director – CEO 0
0
Administration, technical staff and other employees 0
0
0
0
Pension costs:
Managing Director – CEO 2
0
Board of directors 1
0
Administration, technical staff and other employees 0
0
3
0
Social security costs 2
5
Other staff costs 0
0
2
5
Total employee costs 48
5
2022
2021
Average number of employees during the year:
Technical and operations 0
0
Management and administration
1
1
1
1
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 44/71
8 Share based payments
9 Other operating cost/income
10 Depreciation
Full year Full year
2022
2021
Number of options
1
st
January
0 0
Lapsed during the period 0 0
Expired during the period 0
0
At 31
st
December
0 0
Weighted average exercise price DKK
1
st
January
0 0
Lapsed during the period 0 0
Expired during the period 0
0
At 31
st
December
0 0
Full year Full year
DKK 1,000 2022
2021
Other operating income related to sales of licenses 0
0
Other operating income relaed to sales of activity 0
0
0
0
Full year Full year
DKK 1,000 2022
2021
Depreciations included in general and administration costs 0
0
0
0
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 45/71
11 Tax
12 Dividend
No dividend is proposed. (2021: DKK Nil)
13 Earnings per share
The calculation of basic earnings per share is based on the profit after tax and on the weighted average number of Ordinary
Shares in issue during the year.
Basic and diluted earnings per share are calculated as follows:
Full year Full year
DKK 1,000 2022
2021
Current tax :
Tax repayable/(payable) in UK 0
0
Tax repayable/(payable) in NO 0
0
Tax repayable/(payable) 0
0
Total current tax 0
0
Deferred tax:
Deferred tax cost in UK 0
0
Deferred tax 0
0
Total deferred tax 0
0
Tax credit/tax on loss/profit on ordinary activities 0
0
Full year Full year
DKK 1,000 2022
2021
Basic
Profit/loss after tax 348 3,149
Weighted average number of shares 3,697,863 3,697,863
Earnings per share 0.09 851.57
Diluted
Profit/loss after tax 348 3,149
Weighted average number of shares 3,697,863 3,697,863
Earnings per share 0.09 0.85
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 46/71
14 Intangible assets
15 Oil and gas – Intangible exploration and evaluation assets
The amounts for intangible E&E assets represent the active exploration projects. These amounts will be written
off to the income statement as exploration expense unless commercial reserves are established or the
determination process is not completed and there are no indications of impairment. The outcome of ongoing
exploration, and therefore whether the carrying value of E&E assets will ultimately be recovered, is inherently
uncertain.
At 31
st
Dec At 31
st
Dec
DKK 1,000 2022
2021
Costs
At 1
st
January
12,260 12,260
Exchange movements 0
0
Additions/Adjustments 0
0
At end of period 12,260
12,260
Amortisation and depreciation
At 1
st
January
12,260 12,260
Exchange movements 0
0
Charge this period 0
0
At end of period 12,260
12,260
Net book value at end of period 0
0
At 31
st
Dec At 31
st
Dec
DKK 1,000 2022
2021
Costs
At 1
st
January
0 0
Exchange movements 0
0
Additions 0
0
Disposal/relinquishment of licences 0
0
Explorations expenditures written off/sold 0
0
At end of period 0
0
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 47/71
16 Oil and gas – Tangible development and production assets
Depreciation and amortisation for oil and gas properties is calculated on a unit-of-production basis, using the
ratio of oil and gas production in the period to the estimated quantities of proved and probable reserves at the
end of the period plus production in the period, on a field-by-field basis. Proved and probable reserve estimates
are based on a number of techniques to generate its estimates and regularly references its estimates against
those of joint venture partners or external consultants. However, the amount of reserves that will ultimately be
recovered from any field cannot be known with certainty until the end of the field’s life.
17 Property, plant and equipment assets
At 31
st
Dec At 31
st
Dec
DKK 1,000 2022
2021
Costs
At 1
st
January
0 0
Exchange movements 0
0
Disposal/Additions 0
0
At end of period 0
0
Amortisation and depreciation
At 1
st
January
0 0
Exchange movements 0
0
Depreciation, charge 0
0
Impairment, charge 0
0
At end of period 0
0
Net book value at end of period 0
0
At 31
st
Dec At 31
st
Dec
DKK 1,000 2022
2021
Costs
At 1
st
January
0 0
Exchange movements 0
0
Additions 0
0
At end of period 0
0
Amortisation and depreciation
At 1
st
January
0 0
Exchange movements 0
0
Charge this period 0
0
At end of period 0
0
Net book value at end of period 0
0
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 48/71
18 Investments and associates
Priscipal subsidiary undertakings of the Parent Company, all of which are 100 percent owned, are as follow:
Name of Company
Business and area of operation
Country of registration
Atlantic Petroleum UK Limited
Exploration, developmend and production, UK
England and Wales
Atlantic Petroleum (Ireland) Limited*
Exploration, developmend and production, Ireland
Republic of Ireland
Atlantic Petroleum North Sea Limited*
Exploration, developmend and production, UK
England and Wales
19 Trade and other receivables
All trade and other receivables are due within one year except for the Orlando deferred consideration DKK
53,0MM, of which 16.5MM is expected to be due within one year
The carrying values of the trade and other receivables are equal to their fair value as at the balance sheet
date.
Orlando deferred consideration
Under the Sale and Purchase Agreement regarding Orlando, APNS is due to receive deferred considerations
equalling 2% of the sale proceeds from the first 5,000,000 barrels of Orlando petroleum and an amount
equalling 4.35% of the Orlando petroleum in excess of the first 5,000,000 barrels.
The deferred consideration receivable on the Orlando field is currently valued at DKK 53.0MM.
Reserves are based on the information in the operators’ latest annual accounts.
Based on this the reserves are estimated to 6.1 MMBbl.
Production rates are based on a 21% decline profile with initial production at 10,000 bopd, however
as a result of issues with the upper completion, peak rates have been restricted to around 5,000
bopd. A workover has been carried out in the third quarter of 2022. Production has recommenced in
Q3 2022. Production rates are expected to be 4,000 – 5,000 bopd for the remiainder of the year.
The valuation is therefore based on a production of 4,000 bopd until the total production equals the
total production by the original profile when declined to 4,000 bopd.
At 31
st
Dec At 31
st
Dec
DKK 1,000 2022 2021
Non-Current
Other receivables 36,498 39,192
36,498 39,192
Current
Trade receivables -92 -97
Prepayments and accrued income 0 0
Other taxes and VAT receivable 169 166
Other receivables 16,537 2,182
16,615 2,251
Net receivables 53,113 41,443
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 49/71
Oil price is based on Brent crude futures.
Exchange rates are based on exchange rates at 31
st
December 2022.
20 Trade and other payables
At 31
st
Dec
At 31
st
Dec
DKK 1,000
2022
2021
Trade payables*
57,797
41,777
Accrued expenses
205
206
Other payables
6,812
8,744
64,814
50,727
All trade and other payables are due within one year.
The carrying values of the trade and other payables are equal to their fair value as at the balance sheet date.
* Other payables 2022 consist of a liability regarding the settlement Ettrick & Blackbird, the liability is DKK
6.8MM (GBP 0,81MM). London Oil & Gas Limited has provided a guarantee in the sum of GBP 1,15MM in
favour of the beneficiaries.
21 Cash, short and long term debt
At 31
st
Dec
At 31
st
Dec
DKK 1,000
2022
2021
Cash:
Cash at bank and in hand
65
17
Total cash
65
17
Short term debt:
Short term bank loans
59.438
59.438
Total short term borrowings
59.438
59.438
Long term debt:
Long term bank loans
0
0
Total long term borrowings
0
0
The borrowings are repayable as follows:
At 31
st
Dec
At 31
st
Dec
DKK 1,000
2022
2021
Bank loans analysed by maturity
Within one year
59.438
59.438
In one to five years
0
0
59.438
59.438
At year end 2022 the total short- and long-term loans amounted to DKK 59.4MM (2021: DKK 59.4MM).
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 50/71
22 Obligations under leases
There are no remaining production installation leases that Atlantic Petroleum is a party to.
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 51/71
23 Provisions for long-term liabilities and charges
At 31
st
Dec
At 31
st
Dec
DKK 1,000
2022
2021
Decommissioning costs:
At 1
st
January
11,685
11,690
Exchange movements
0
-539
Reversal E&B
0
0
Reversal APIR 2017
0
0
Addition of future decommissioning costs during the
year
0
535
At 31
st
December
11,685
11,685
Total provision
11,685
11,685
The decommissioning provision represents the present value of decommissioning costs relating to the oil and
gas interests, which are expected to be incurred between 2022 and 2031. These provisions have been created
based on operators' estimates. Based on the current economic environment, assumptions have been made
which the management believe are a reasonable basis upon which to estimate the future liability. These
estimates are reviewed regularly to take into account any material changes to the assumptions. However,
actual decommissioning costs will ultimately depend upon future market prices for the necessary
decommissioning works required, which will reflect market conditions at the relevant time.
Furthermore, the timing of decommissioning is likely to depend on when the fields cease to produce at
economically viable rates. This in turn will depend upon future oil and gas prices, which are inherently
uncertain.
24 Financial instruments
The Group's activities expose it to financial risks of changes, primarily in oil and gas prices, but also foreign
currency exchange and interest rates.
Interest rate risk profile of financial liabilities
The interest rate profile of the financial liabilities of the Group as at 31st December was:
The floating rate comprises bank borrowings bearing interest at rates set by reference to DKK CIBOR
exposing the Group to a cash flow interest rate risk.
Interest rate risk profile of financial assets
At 31
st
Dec At 31
st
Dec
DKK 1,000 2022 2021
Floating rate
DKK
59,438 59,438
NOK 0
0
Total 59,438 59,438
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 52/71
The interest rate profile of the financial assets of the Group as at 31st December was:
The floating rate cash and short-term deposits consists of cash held in interest-bearing current accounts by
reference to DKK CIBOR.
The fair values of the financial assets and financial liabilities are:
Fair value is the amount at which a financial instrument could be exchanged in an arm’s length transaction,
other than in a forced or liquidated sale. Where available, market values have been used to determine fair
values. The estimated fair values have been determined using market information and appropriate valuation
methodologies. Values recorded are indicative and will not necessarily be realised. Non-interest bearing
financial instruments, accounts receivable from customers, and accounts payable are recorded materially at
fair value reflecting their short-term maturity and are not shown in the above table.
Currency risk
No currency exposures were hedged during the year and thus there is a currency risk.
Please see risk management section for currency risk exposures.
At 31
st
Dec At 31
st
Dec
DKK 1,000 2022 2021
Floating rate
Held in DKK 62 14
Held in GBP 0 0
Held in USD 3 3
Held in EUR 0 0
Held in NOK 0 0
Total 65 17
At 31
st
Dec At 31
st
Dec
DKK 1,000 2022 2021
Carrying amount
Cash and short-term deposits 65 17
Bank loans and credit facility -59,438 -59,438
Long-term bank loan 0 0
Fair value
Cash and short-term deposits 65 17
Bank loans and credit facility -59,438 -59,438
Long-term bank loan 0 0
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 53/71
25 Deferred tax
At 31
st
Dec
At 31
st
Dec
DKK 1,000
2022
2021
Deferred tax assets
0
0
0
0
DKK 1,000
2022
2021
Deferred tax liability
0
0
0
0
The Group has DKK 210.1MM of tax credits and allowances in its UK companies however in the absence of
certainty over the availability of future taxable profits the value of these has been discounted to zero.
26 Share capital
At 31
st
Dec At 31
st
Dec
DKK 1,000 2022 2021
Balance at 1
st
January
3,698 3,698
Shares issued
Balance at 31
st
December
3,698 3,698
Ordinary Shares
At 31
st
Dec At 31
st
Dec
2022
2021
DKK shares
Authorised 8,626,703 8,626,703
Called up, issued and fully paid 3,697,860 3,697,860
DKK 1,000
Authorised 8,627 8,627
Called up, issued and fully paid 3,698 3,698
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 54/71
27 Analysis of changes in net debt/cash
At 31
st
Dec
At 31
st
Dec
DKK 1,000
2022
2021
a) Reconciliation of net cash flow to
movement in net debt/cash:
Movement in cash and cash equivalents
48
17
Proceeds from long-term loans
0
0
Proceeds from short-term loans
0
0
Increase/decrease in net cash in the period
48
17
Opening net cash
-71.357
-71.375
Closing net cash/debt
-71.309
-71.357
b) Analysis of net cash/debt:
Cash and cash equivalents
65
17
Short-term debt
-59.438
-59.438
Long-term debt
-11.936
-11.936
Total net cash/debt
-71.309
-71.357
28 Capital comittments and guarantees
P/F Atlantic Petroleum has provided a parent guarantee to the UK Department for Energy and
Climate Change in connection with Atlantic Petroleum UK Limited assets in the UKCS:
(i) the parent will always provide necessary finance to enable Atlantic Petroleum UK Limited to
fulfil its obligations in the UK area
(ii) the parent will not alter Atlantic Petroleum UK Limited legal rights, so that the Company
cannot fulfil its obligations
(iii) the parent will undertake Atlantic Petroleum UK Limited financial obligations if the Company
fails to do so
P/F Atlantic Petroleum has a senior secured loan agreement with P/F Betri Banki. The Company has
offered the following security to lender in connection with the loan agreement:
(i) shares in Atlantic Petroleum UK Limited and Atlantic Petroleum North Sea Limited
(ii) receivables from Atlantic Petroleum UK Limited
(iii) charge over proceeds from insurance coverage
The Company has provided lender with a negative pledge and investment in new ventures shall be
endorsed by the lender.
Atlantic Petroleum UK Limited had a loan facility at year end 2022 with the following bank: P/F Betri
of DKK 56.8MM. P/F Atlantic Petroleum has provided a parent guarantee for this loan facility.
The Company has provided lender with a negative pledge and investment in new ventures shall be
endorsed by the lender.
NOTES TO THE CONSOLIDATED ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 55/71
29 Contingent considerations
Under the Sale and Purchase Agreement regarding Orlando, APNS is due to receive deferred considerations
equalling 2% of the sale proceeds from the first 5,000,000 barrels of Orlando petroleum and an amount
equalling 4.35% of the Orlando petroleum in excess of the first 5,000,000 barrels.
30 Related party disclosures
Intra-group related party transactions, which are eliminated on consolidation, are not required to be disclosed
in accordance with IAS 24.
Atlantic Petroleum has a key management personnel service agreement with Grannnskoðarastovan Sp/f for
at monthly fee of DKK 30.000. Outstanding balance at 31
st
December 2022 is DKK 1.35MM
PARENT COMPANY INCOME STATEMENT
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 56/71
For the year ended 31
st
December 2022
DKK 1,000
Note
2022
2021
Revenue 0
0
Costs of sales 0
0
Gross profit/loss 0
0
Exploration expenses 0
0
Pre-licence exploration cost 0
0
General and administration cost 2.3 -1,445
-1,469
Depreciation PPE and intangible assets 6 0
0
Other operating cost/income 5 0
0
Operating loss -1,445
-1,469
Interest income and finance gains 7 -1,560
1,624
Interest expenses and other finance costs 7 -15,659
-3,114
Loss before taxation -18,665
-2,959
Taxation 0
0
Profit/Loss after taxation -18,665
-2,959
Distribution of profit:
Retained earnings -18,665
-2,959
Distribution in total -18,665
-2,959
PARENT COMPANY STATEMENT OF COMPREHENSIVE INCOME
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 57/71
For the year ended 31
st
December 2022
DKK 1,000 2022
2021
Items that may be recycled in P/L:
Profit/loss for the period -18,665
-2,959
Total comprehensive
Income/loss in the period -18,665
-2,959
PARENT COMPANY FINANCIAL POSITION
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 58/71
31
st
December 2022
At 31
st
Dec
At 31st Dec
DKK 1,000
Note
2021
2021
Non-current assets
Intangible assets
10
0
0
Property plant and equipment
11
0
0
Investment in subsidiary
9
20.101
20.101
20.101
20.101
Current assets
Trade and other receivables
12
19
42
Reveivables from subsiduary
12
5.621
7.206
Cash and cash equivalents
24
65
17
5.705
7.265
Total assets
25.805
27.365
Current liabilities
Exploration finance facility
0
0
Short term bank debt
21
2.617
2.617
Trade and other payables
13
52.354
35.603
Current tax payable
0
0
54.971
38.220
Non-current liabilities
Long term debt – intercompany
106.373
106.019
Long term bank debt
0
0
Convertible loan facility
11.936
11.936
118.308
117.955
Total liabilities
173.279
156.174
Net assets
-147.474
-128.809
Equity
Share capital
3.698
3.698
Share based bonus schemes – LTIP
4
Retained earnings
-151.172
-132.507
Total equity shareholders´ funds
-147.474
-128.809
PARENT COMPANY STATEMENT OF CHANGES IN EQUITY
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 59/71
For the year ended 31
st
December 2022
Share Retained
DKK 1,000 capital earnings Total
At 1st January 2021 3,698 -129,549 -125,851
Result for the period 0 -2,958 -2,958
At 31st Dec. 2021 3,698 -132,507 -128,809
Result for the period 0 -18,665 -18,665
At 31
st
Dec. 2022
3,698 -151,172 -147,474
PARENT COMPANY CASH FLOW STATEMENT
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 60/71
For the year ended 31
st
December 2022
DKK 1,000
2022
2021
Operating activities
Operating loss
-1.445
-1.469
Depreciation, depletion and amortisation
0
0
Change in trade and other receivables
23
1
Change in trade and other payables
16.751
26.615
Interest revenue and finance gain received
-1.560
1.624
Interest expenses and other finance cost
-15.659
-3.114
Income taxes
0
0
Net cash flow provided by operating activities
-1.891
23.657
Investing activities
Capital expenditure
0
0
Net cash used in investing activities
0
0
Financing activities
Change in intercompany accounts
1.938
-441
Change in short term debt
0
102
Change in long term debt
0
-23.315
Net cash flow provided from financing activities
1.938
-23.654
Change in cash and cash equivalents
48
3
Cash and cash equivalents at the beginning of the
period
17
14
Cash and cash equivalents at the end of the period
65
17
PARENT COMPANY NOTES TO THE ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 61/71
1 Corporate information
The financial statements for the Company P/F Atlantic Petroleum for the year ended 31
st
December 2022,
according to the requirement in the Faroese Company Accounts Act, were authorised for issue in accordance
with a resolution of the directors on 31
st
March 2023.
P/F Atlantic Petroleum is a public limited company incorporated and domiciled in the Faroe Islands and listed
on the exchange NASDAQ OMX Copenhagen. The Company was delisted from Oslo Stock Exchange with
the last day of listing was 8. January 2021. The principal activities of the Company are Oil & Gas exploration,
and appraisal in the Faroe Islands.
2 Auditors’ remuneration
DKK 1,000 2022
2021
Audit services:
Statutory and Group audit, parent company auditor 125
145
Review of interim Financial Statements
0 0
125
145
PARENT COMPANY NOTES TO THE ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 62/71
3 Employee cost
* The Board of Directors' remuneration by person and the CEO's remuneration is disclosed in the Director's
Report - Directors' Interests and Remuneration and in Management's Interests and Remuneration.
** Staff numbers include Managers.
*** See also note Share based payments below.
The notice of termination for the CEO is one month.
DKK 1,000 2022
2021
Staff costs, including executive directors:
Wages and salaries
Board of directors 18
0
Managing Director – CEO*** 25
0
Administration, technical staff and other emplyees
43
0
Share based payment – LTIP accounting charge****:
Managing Director – CEO 0
0
Administration, technical staff and other employees 0
0
0
0
Pension costs:
Managing Director – CEO 0
0
Board of Directors
Administration, technical staff and other employees 0
0
0
0
Social security costs 2
5
Other staff costs 0
0
2
5
Total employee costs 44
5
2022
2021
Average number of employees during the year:
Technical and operations 0
0
Management and administration
1
1
1
1
PARENT COMPANY NOTES TO THE ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 63/71
4 Share based payments
5 Other operating income
6 Depreciation
2022
2021
Number of options
1
st
January
0 0
Lapsed during the period 0 0
Expired during the period 0
0
At 31
st
December
0 0
Weighted average exercise price DKK
1
st
January
0 0
Lapsed during the period 0 0
Expired during the period 0
0
At 31
st
December
0 0
DKK 1,000 2022
2021
Service rendering to subsidiaries 0
0
0
0
DKK 1,000 2022
2021
Depreciations included in general and administration costs 0
0
0
0
PARENT COMPANY NOTES TO THE ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 64/71
7 Interest revenue and expenses & finance gain and cost
8 Dividend
No interim dividend is proposed. (2021: DKK Nil)
9 Investment in subsidiaries
Priscipal subsidiary undertakings of the Parent Company, all of which are 100 percent owned, are as follow:
Name of Company
Business and area of operation
Country of registration
Atlantic Petroleum UK Limited
Exploration, developmend and production, UK
England and Wales
Atlantic Petroleum (Ireland) Limited*
Exploration, developmend and production, Ireland
Republic of Ireland
Atlantic Petroleum North Sea Limited*
Exploration, developmend and production, UK
England and Wales
In connection with the debt facility, P/F Atlantic Petroleum has pledged as security to the lenders the shares
in the wholly owned subsidiary Atlantic Petroleum UK Limited. See note regarding capital commitments and
guarantees.
DKK 1,000 2022
2021
Interest income and finance gain:
Short term deposits 0
0
Exchange differences -1,560
1,624
-1,560
1,624
Interest expense and other finance cost:
Bank loan and overdrafts 11
109
Others 3
0
Creditors 17,955
Exchange differences -2,310
3,004
15,659
3,113
DKK 1,000 2022
2021
Costs
At 1
st
January
20,101 20,101
At end of period 20,101
20,101
PARENT COMPANY NOTES TO THE ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 65/71
10 Intangible assets
11 Property, plant and equipment
DKK 1,000 2022
2021
Costs
At 1
st
January
1,467,000 1,467
Additions/Adjustments 0
0
At end of period 1,467,000
1,467
Amortisation and depreciation
At 1
st
January
1,467,000 1,467
Charge this period 0
0
At end of period 1,467,000
1,467
Net book value at end of period 0
0
DKK 1,000 2022
2021
Costs
At 1
st
January
849,976 850
Additions 0
0
At end of period 0
0
Amortisation and depreciation
At 1
st
January
849,976 850
Charge this period 0
0
At end of period 0
0
Net book value at end of period 0
0
PARENT COMPANY NOTES TO THE ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 66/71
12 Trade and other receivables
All trade and other receivables are due within one year.
The carrying values of the trade and other receivables are equal to their fair value as at the balance sheet
date.
The amount due from subsidiary undertakings relates to balances, which bears no interest and are payable
upon request. In connection with the Company´s debt facility, P/F Atlantic Petroleum has pledged as security
the intra-company receivables from Atlantic Petroleum UK Limited. See note regarding capital commitments
and guarantees.
13 Trade and other payables
DKK 1,000
2021
2021
Trade payables*
52.158
35.407
Accrued expenses
196
196
Other payables
0
0
52.354
35.603
All trade and other payables are due within one year.
The carrying values of the trade and other payables are equal to their fair value as at the balance sheet date.
DKK 1,000 2022 2021
Trade receivables 0 0
Other taxes and VAT receivable 19 42
Reveivables from subsiduary 5,621 7,206
Net assets 5,640 7,248
PARENT COMPANY NOTES TO THE ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 67/71
14 Cash, short and long-term debt
DKK 1,000 2022 2021
Cash:
Cash at bank and in hand 65 17
Total cash 65 17
Short term debt:
Short term bank loans 2,617 2,617
Total short term borrowings 2,617 2,617
Long term debt:
Long term bank loans 0 0
Total long term borrowings 0 0
The borrowings are repayable as follows:
DKK 1,000 2022 2021
Bank loans analysed by maturity
Within one year 2,617 2,617
In one to five years 0 0
2,617 2,617
PARENT COMPANY NOTES TO THE ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 68/71
18 Financial instruments
The Group's activities expose it to financial risks of changes, primarily in oil and gas prices, but also foreign
currency exchange and interest rates.
Interest rate risk profile of financial liabilities
The interest rate profile of the financial liabilities of the Group as at 31st December was:
The floating rate comprises bank borrowings bearing interest at rates set by reference to DKK CIBOR exposing
the Group to a cash flow interest rate risk.
A 1 per cent point change per annum in the interest would have a hypothetic effect of DKK 0,03MM (2021:
DKK 0,03MM) on the result and equity.
Interest rate risk profile of financial assets
The interest rate profile of the financial assets of the Group as at 31st December was:
The floating rate cash and short-term deposits consists of cash held in interest-bearing current accounts by
reference to DKK CIBOR.
DKK 1,000 2022 2021
Floating rate
DKK
2,617 2,617
NOK 0
0
2,617 2,617
Total 2,617 2,617
DKK 1,000 2022 2021
Floating rate
Held in DKK 62 14
Held in GBP 0 0
Held in USD 3 3
Held in EUR 0 0
Held in NOK 0 0
65 17
Total 65 17
PARENT COMPANY NOTES TO THE ACCOUNTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 69/71
The fair values of the financial assets and financial liabilities are:
Fair value is the amount at which a financial instrument could be exchanged in an arm’s length transaction,
other than in a forced or liquidated sale. Where available, market values have been used to determine fair
values. The estimated fair values have been determined using market information and appropriate valuation
methodologies. Values recorded are indicative and will not necessarily be realised. Non-interest bearing
financial instruments, accounts receivable from customers, and accounts payable are recorded materially at
fair value reflecting their short-term maturity and are not shown in the above table.
Currency risk
No currency exposures were hedged during the year and thus there is a currency risk.
Please see risk management section for currency risk exposures.
DKK 1,000 2022 2021
Carrying amount
Cash and short-term deposits 65 17
Bank loans and credit facility -2,617 -2,617
Long-term bank loan 0 0
Fair value
Cash and short-term deposits 65 17
Bank loans and credit facility -2,617 -2,617
Long-term bank loan 0 0
CONTACTS
P/F Atlantic Petroleum Atlantic Petroleum DK 2022 annual report_en Issued 31
st
March 2023 70/71
Contacts
P/F Atlantic Petroleum
P.O.Box 1228
Lucas Debesargøta 8
FO-110 Tórshavn
Faroe Islands
Telephone +298 59 16 01
E-mail: petroleum@petroleum.fo
www.petroleum.fo
VAT/Tax No. Faroes 475.653
Reg. No. Faroes 2695
Atlantic Petroleum UK Ltd / Atlantic
Petroleum North Sea Ltd
5 Strarford Place
London W1C 1AX
United Kingdom
Telephone +298 59 16 01
Atlantic Petroleum (Ireland) Ltd
Registered address
6th Floor
2 Grand Canal Square
Dublin 2
Ireland
Auditors Parent Company
JANUAR, State Authorised Public Accountants P/F
P.O.Box 30, Óðinshædd 13
FO-110 Tórshavn
Faroe Islands
Telephone +298 314 700
Fax +298 351 701
E-mail: januar@januar.fo
www.januar.fo
Auditors Subsidiaries
Atlantic Petroleum UK Ltd/
Atlantic Petroleum North Sea Ltd: Atlantic Petroleum (Ireland) Ltd:
Anderson Anderson & Brown LLP KPMG
Kingshill View Stokes Place
Kingswells Causeway St Stephens Green
Prime Four Business Park Dublin 2
Aberdeen AB15 8PU Ireland
United Kingdom
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