Exploration update – further portfolio growth

To achieve the resource increase Rocksource was successful in two licence rounds in 2008. In the UKCS 25th Round the company was awarded four licences, and on the NCS the company was awarded two further licences in the 2008 APA, both as operator.

In the USA, Rocksource has also added prospective resources to follow up the success on the Drews Landing Field. Two of these prospects were drilled in late Q4 2008 and Q1 2009 with results still pending.

Rocksource has also been active in reviewing a number of farm-in opportunities. This effort led to successful farm-ins in two very high potential opportunities in India and Senegal/Guinea Bissau, and these farm-ins have also substantially added to the portfolio. Throughout 2008 Rocksource evaluated several farm-in opportunities in a number of global basins, including opportunities where CSEM data sets already exisited. These were not pursued further as the prospectivity did not achieve the metrics required for Rocksource to participate.

During 2008 and early 2009, Rocksource has also downgraded prospectivity on two licences; PL 456 in Norway and P1553 in the United Kingdom. Both licences will now be relinquished accourding to our exploration model where only high graded CSEM positive prospects are matured further. Also, as part of the terms of the 24th Round Frontier licences in the United Kingdom, the Operators for P 1484, P 1486 and P 1488 are preparing to complete the statuatory 75% relinquishment required on the second anniversary of the award date. All reductions in net risked resources, due to these relinquishments, are included in the current portfolio of 388 mmboe total in net risked resources.

Looking forward the company expects the following events for further portfolio development in the first two quarters:

India – CY-DWN-2001-1: Rocksource will attend partner meetings in early March, where the 3rd well location for the Phase 1 work programme will be decided.

USA – Drews Landing Near Field Exploration: Rocksource will obtain final results from the two onshore exploration wells drilled in late Q4 2008 and Q1 2009.

NCS – 20th Round Awards: In late 2008, Rocksource submitted applications for the Norwegian 20th Round which were the product of the major CSEM acquisition project completed in 2007. Awards for the 20th Round are expected in Q2 2009, and would significantly add to the current portfolio.

NCS - PL 416: In late Q2 2009 Rocksource expects the partnership to make the decision whether to progress to drill the positive CSEM prospect on the block.

Senegal/Guinea Bissau – AGC Profond: In late Q2 2009 Rocksource will have completed the CSEM evaluation of the lines acquired in late 2008/early 2009 and will decide whether to progress to drill the first exploration well on the block.

These events have the potential to begin a multi-well campaign testing low risk, high value prospectivity all associated with CSEM positive responses. Chief Operating Officer, Gregor Maxwell, quoted: ”2009 will be an exiting year in the development of the Rocksource exploration portfolio and drilling queue. We expect to see a number of low risk, high value prospects turned to firm drilling commitments as the portfolio begins to mature.”

Oslo, 25.2.2009
Rocksource ASA

Trygve Pedersen
CEO

+47 90 09 77 41