Rocksource ASA - Q1 financial results

Rocksource Group’s (Company/Rocksource) net loss in the first quarter of 2011 equalled NOK 41.9 million, compared to a loss of NOK 35.2 million in the first quarter of 2010. Exploration expenses totalled NOK 39.7 million in the quarter, down from NOK 40.5 million in first quarter 2010.

As a consequence of a decision to divest the Rocksource’s US onshore assets, these assets have according to IFRS-guidelines been re-classified as “discontinued operations”. Accordingly income and expenses from the US onshore assets have been presented on a separate line “Net profit/(loss) from discontinued operations” in the income statements. Operating income from the US onshore activities totalled NOK 8.3 million in the first quarter versus NOK 18.6 million in first quarter 2010. Rocksource is in continued talks with potential buyers of the US onshore assets and aims to conclude a sale shortly.

Rocksource is very pleased to report on successful awards in the recent Norwegian Continental Shelf (NCS) licensing rounds. In January Rocksource was awarded five new licenses in the APA 2010 Licensing Round. This was followed by the award of an additional four new licenses in the NCS 21st Licensing Round in April. These awards, which combined add approximately 200 million barrels of oil equivalent (mmboe) in net risked resource potential, once again demonstrate the Company’s ability to secure competitive acreage and contribute long term opportunities to the Rocksource exploration portfolio.

The recent spud of the “Norvarg” well in PL 535 in the Barents Sea marked the commencement of the Rocksource exploration drilling campaign. The Company expects to spud two more wells in the second quarter; the “Kora” well offshore West Africa and the “Breiflabb” well in the North Sea. An additional two wells will spud in the second half of 2011.
 
Attached is a full interim report, the Q1 presentation and a corresponding press release.

Please find the Q1 presentation here: http://www.rocksource.com/presentations/category157.html

The financial report can be found here: http://www.rocksource.com/financial-reports/category159.html

 
Oslo, 13.5.2011
Rocksource ASA

Trygve Pedersen
CEO

+47 90 09 77 41