Iceland Closes First Licensing Round in Dreki Area

The National Energy Authority (NEA) of Iceland hereby declares the First Licensing Round for the northern Dreki Area closed for applications as of today, May 15, 2009, at 16:00 GMT, in accordance with Act No. 13/2001 on prospecting, exploration and production of hydrocarbon, including later amendments, the corresponding regulation No. 38/2009 and Article 3(2)(a) of Directive 94/22/EC of the European Parliament and of the Council of May 30, 1994 on the conditions for granting and using authorizations for the prospection, exploration and production of hydrocarbons.

The NEA received two applications for exploration and production licenses during the Licensing Round. In addition, during this period, the NEA received one application for a prospecting license in the Dreki area. An open door policy is, however, maintained for prospecting licenses. Submitted applications for exploration and production licenses will be opened at the premises of the NEA, Grensásvegur 9, 108 Reykjavík, at a publicly available meeting on May 18, 2009, at 14:00. At the opening, the names of the applicants and the block(s) applied for will be read out.

The NEA is pleased with the applications, especially considering the challenging conditions for exploration in the Dreki Area. This is a difficult and expensive long-term exploration project for the future licensees, but with the potential for high reward upon successful exploration.