Rocksource ASA – Q2 2009 financial results

Low gas prices and technical challenges in key onshore producing wells in the US led to a drop in revenues for Rocksource in the second quarter of 2009. Compared to previous quarter revenue dropped from NOK 29.1 million to NOK 22.6 million, exploration costs increased with NOK 30.4 million while net loss improved slightly from NOK 41.0 million to NOK 39.1 million.

The average production in the quarter was 1,422 barrels of oil equivalents (boepd), down from 1,707 boepd in the first quarter caused by technical challenges in key wells. Wells have been shut in to replace production tubing and allow for stimulation.

After the unforeseen fall in production over the last months Rocksource has revised down its production target for 2009 to 1,300 boepd, down from previously 1,700 boepd.

Rocksource is picking up speed and 2010 will represent a step change in overall activity. While the company in recent years has focussed its attention towards acreage capturing, focus is now shifting towards firming up explorations wells and establishing a low risk, high potential drill queue. So far, 2009 has been very successful in this respect. Through a successful license round in Norway, positive results from CSEM data in West Africa and a strategic entry into the Gulf of Mexico, Rocksource has made significant additions to its overall resource base and hence its value potential. The upcoming drill queue of six high potential wells, of which four are firm, consists of CSEM positive prospects aiming to test net risked resources of more than 400 million barrels of oil equivalent (boe).

Leveraging on the technical capabilities Rocksource aims to prove more barrels faster and at a lower cost proving that the quality, not the quantity, of licenses in a portfolio will be the key to Rocksource’s exploration success.

Follow this link for Q2 financial results: http://www.rocksource.com/financial-reports/category159.html
Please find the Q2 presentation here: http://www.rocksource.com/presentations/category157.html
A corresponding press release can be found here: http://www.rocksource.com/press-releases/category166.html

Oslo, 25.8.2009
Rocksource ASA

Trygve Pedersen
CEO

+47 90 09 77 41