June 2009 production update

The production problems reported in the company’s May update continued through June without production from Lazy "M" #2 and Morian #6. Repairs proved to be more extensive than expected in both wells and the prolonged shut-in caused by this has led to the wells not responding as expected when returned to production. The wells are currently producing at a low rate. Consequently, preparations are in progress for well stimulation to re-establish flow, and tentative dates for the operations have been planned for the first two weeks of July.

When the wells have been brought back on production again, Rocksource will review the effect on this year’s production guidance and report on this as early as is prudent. However, it is expected that the company’s 2009 guidance at 1,700 boepd will be revised downwards following the ongoing technical challenges. There are no indications of any changes to the estimated reserves in the fields.

Evaluation of development options for the Granbury discoveries continues in the context of continuing low gas prices. A development using only the exploration wells which could reduce the overall impact of the recent production shortfall from the developed fields is under consideration.

Note: The stated production numbers are based on metered daily production, and may thus differ slightly from the final production volumes that will be used for accounting purposes, due to changes in stock volumes etc.

Oslo 7.7.2009
Rocksource ASA

Trygve Pedersen
CEO

+47 90 09 77 41