May 2009 production update

Production in the second half of May was negatively influenced by two of the most productive wells experiencing technical problems. During an additional completion in the Lazy M #2 well, the perforating tool was lost in the hole and has since been successfully retrieved. The well is currently being swabbed for water and is expected to come back on production in the first half of June. The Morian #6 well has also experienced problems due to corroding of the production tubing and has been producing at a curtailed rate. New tubing is planned to be installed in the first half of June and the well is expected to come back on full production later in June.

The higher rate early wells in the New Ace/Drews Landing field are in natural decline. When technical problems occur, as in the second half of May, there is therefore very limited scope to mitigate these by increasing production from other wells. The monthly production is therefore likely to vary more than in the past. Production from the more recent wells has not yet established steady production levels but this will occur over the next month or two. Rocksource will review the annual production forecast and total recovery from the fields when these steady production levels have been established.

Evaluation of development options for the Granbury discoveries are ongoing, but would need clear improvement from the current level of gas prices to become commercial. Other growth opportunities are being considered to secure production increase.

Oslo 8.6.2009
Rocksource ASA

Trygve Pedersen
CEO

+47 90 09 77 41