4Q 2005 Presentation

The group`s revenues from the oil and gas production in the USA amounted to 3 million NOK of a total amount of 7 million NOK for 2005. The production in the 4th quarter was 31.4 million cubic feet of gas (Total 2005 annual gas production of 91.9 million cubic feet) and 1,222 barrels of oil (Total 2005 annual oil production of 3,184 barrels).

In the 4th quarter the company accounted for revenue of ca. NOK 3.8 from the sale of seismic in relation to the company`s participation in a seismic project offshore Colombia. Rocksource participated both as an investor and with the aim of positioning for future licensing on the Colombian shelf as part of its ongoing exploration activities.

The company`s operating costs are affected by a one-off compensation of NOK 12.5 million in association with the renegotiation of the management agreement, amortization of the seismic participation offshore Colombia of approximately 2.2 mill NOK, together with a share based incentive scheme for key employees with an effect on 2005 results of approximately 1.8 mill NOK.

Rocksource Geotech AS is a technology division of the company which develops and delivers technology and interpretation services related to the corporate portfolio. The company is engaged in ongoing research and development activity. Based on evaluations, the company has capitalised 3.9 mill NOK of development costs. This capitalised amount is based on relevant external costs and will be depreciated over 5 years.

As stated in the 3rd quarter presentation the short term loan of USD 3 million was repaid in full in the 4th quarter. Following successful fund raising through the year, the company has a good capital base and liquidity, which is also reflected in positive financial items for 4th quarter, and for the year as a whole.

The periodic result for the 4th quarter shows a loss of NOK -23.9 million producing earnings per share of NOK - 0.045. For the year as a whole the loss is NOK - 47.5 mill, equal to a loss per share of NOK - 0.128. The result per share is for the respective periods and is also diluted result per.

As a result of the share issue the company had a cash flow of NOK 192.4 mill in the 4th quarter. The cash flow for the entire year represented a total amount of NOK 216.7 million. In total it has invested NOK 37.5 million in oil and gas operations, technology development, seismic library and fixed assets.

The company`s working capital at the end of this quarter is NOK 230.3 million and the equity equalled NOK 419.2 mill, giving the company an equity ratio of 95%. The company has no long term interest-bearing liabilities.

Events after 4th quarter -

Extraordinary shareholders meeting 23.2.2006:

The company had an extraordinary shareholders meeting where following was approved:

• The issue if shares towards Dag Dvergsten AS in connection with the renegotiated management agreement
• De-merger of the mineral activities into the newly founded Nordic Mining ASA
• The establishment of a share based incentive program.
• The authority for the board to issue up to 70.000.000 shares
• The authority for the board to acquire their own shares

We refer to stock exchange comments completed the 24.2.2006 for further details.

Acting CEO: As of 1.2.2006 Trygve Pedersen was appointed as acting CEO of Rocksource ASA. We refer to the stock exchange notice of 30.1.2006 for further details.

Oslo, 1.3.2006
Rocksource ASA

Trygve Pedersen
Acting CEO

Tel. +47 90 09 77 41
 

Published: 29.03.2006