3RD QUARTER PRESENTATION AND -ACCOUNTS 2005

The Rocksource Group presents consolidated accounts for the 3rd quarter which are in accordance with planned and expected development. The Group has in the 3rd quarter raised NOK 260 million in new equity. Thus, the Group has strengthened its financial position, and do now have the resources to realize planned projects.

The Group`s revenues from oil and gas activities in the USA was NOK 2.3 million in 3rd quarter in comparison to NOK 1.8 mill for the 1st half-year. Production in 3rd quarter was 854 barrels of oil (1,108 barrels in the 1st half-year) and 31.1 million cubic feet of gas (29.4 million cubic feet in the 1st half-year).

The Group made a loss of NOK -9.8 million for the 3rd quarter, producing earnings per share of NOK -0.026. Per 30.9.2005 the Group made a loss of NOK -23.6 million, producing earnings per share of NOK -0.073. The earnings per share for both periods are also diluted earnings per share. In 3rd quarter the Group had a cash flow of NOK -11.4 million, and NOK 24.3 million per 30.9.2005. The Group`s working capital at the end of the 3rd quarter is NOK 276.7 million, and the equity equalled NOK 441.7 million, giving the Group an equity ratio of 94.6%. The Group had no long term interest-bearing liabilities.

Rocksource ASA`s short term loan of USD 3 million is repaid in full in the 4th quarter 2005. Necessary adjustments in accounting of accrued interest and expenses gave weak net financials in the 3rd quarter.

Oslo, 16 November 2005

Rocksource ASA

Martin Bekkeheien - CEO

Tel. +47 95 72 42 31
 

Published: 03.02.2006