2nd quarter accounts 2005

The Group made a loss of NOK 8.9 million for the 2nd quarter, producing earnings per share of NOK -0.030. The Group made a loss of NOK 13.8 million for the 1st half-year, producing earnings per share of NOK -0.046. The earnings per share for these two periods are also diluted earnings per share.

There has been great focus on the work of developing, testing and commercialising the EM technology and creating a robust financial platform in the 2nd quarter. Following the share issue to funds managed by Fidelity Investment in June and in connection with the merger that has been implemented in the accounts between Rocksource Geotech and Ecuanor Geotech (refer to the stock exchange notification issued on 15 August 2005), the equity has been increased considerably in the 2nd quarter. The share issue to Fidelity raised the net sum of NOK 40.9 million for the company. This, combined with a loan of USD 3 million to finance ta the purchase of the share in New Ace Field, has improved the company`s liquidity by NOK 59.6 million. In total, the Group had positive cash flows of NOK 42.3 million for the 2nd quarter and NOK 35.8 million for the 1st half-year.

As of 30 June 2005, the Group had current assets worth NOK 66.6 million, of which bank deposits comprised NOK 61.3 million. With total current liabilities of NOK 25.9 million, the Group`s liquidity is therefore regarded as satisfactory. The Group had no long-term interest-bearing liabilities.

The Group`s equity as of 30 June 2005 equalled NOK 206.1 million, giving the Group an equity ratio of 88.8%.

Oslo, 16 August 2005
Rocksource ASA

Martin Bekkeheien - CEO

Tel. +47 95 72 42 31

Published: 16.08.2005