Rocksource exploration update PL 559

Reference is made to stock exchange notice dated 19 January 2010, where Rocksource ASA (“Rocksource” or “the Company”) announced the award of operatorship and a 60 per cent stake in the Norwegian Continental Shelf license PL 559 (Blocks 6608/10 & 11). This announcement provides additional information on license prospectivity and future work plans.

PL 559 was Rocksource’s highest priority application in the APA 2009 license round. Prospectivity within the license consists of three main prospects and several leads. As part of the Rocksource evaluation of the area, several of these targets have been tested with Electromagnetics (EM). All three prospects have encouraging EM responses and these data are currently under further evaluation. The overall block potential is estimated at 425 million barrels of oil equivalents (mmboe) mean recoverable resources (Rocksource estimate).

The primary prospects are named “Delilah”, “Phoenix” and “Amazon”. Each represent independent targets within the licence. The Delilah prospect has many similarities to nearby discoveries and lies on the fill and spill route, up dip of the Urd Field. It is estimated to contain 314 mmboe mean recoverable resources with a 36 per cent chance of success (pre-EM uplift)

The Phoenix prospect lies immediately to the east of the Linerle Field and may be an extension of Linerle or a separate accumulation. It is estimated by Rocksource to contain mean recoverable resources of 42 mmboe. Rocksource estimates a pre-EM chance of success of 58 per cent. The Amazon prospect is a new play with some similarities to existing discoveries, it has an estimated 70 mmboe and 17 per cent pre-EM chance of success. EM data that were acquired over the Phoenix and Amazon prospects in March 2010 shows encouraging results for both prospects. The ongoing analysis of the EM data is expected to have a positive impact on the chance of success for these prospects. Multiple Jurassic and a single Palaeocene leads have also been identified.

Based on the licence prospectivity, the Board of Directors of Rocksource has decided to accelerate the work programme on the license with the goal of sanctioning a well for drilling in 2011.

Phase one of the work obligation consists of G&G studies and reprocessing of 3D seismic. New 3D seismic data will be acquired over PL 559 and the adjacent PL 515 licenses in May 2010 as a cost efficient improvement to the work programme. This dataset will be used in combination with existing and recently acquired EM data to re-evaluate the licence and select the drilling target and location of the first well in PL 559. These data will be of further value for planning follow-up wells in the license. The work commitment for the licence requires a drill or drop decision to be made within the next two years, although Rocksource aims to accelerate this.

PL 559 is located on the Nordland Ridge, immediately to the east of the Norne, Urd, Falk and Linerle fields and discoveries. The PL 559 license group consists of: Rocksource (Operator, 60%), VNG Norge (30%) and Skagen 44 (10%). Further information about the licence can be found at the Company’s website.

A more general exploration portfolio update will be published shortly.

Oslo, 7.4.2010
Rocksource ASA

Trygve Pedersen
CEO

+47 90 09 77 41