Petrolia Drilling Considers Private Placement

Petrolia Drilling ASA intends to carry out a private placement of new shares. The private placement will be marketed to professional and institutional Norwegian and international investors in the period from 16:15 to 16:45 on Monday December 19, 2005, and shall be completed at a price near market price on Monday December 19, 2005.

The private placement in Petrolia may include up to approximately 44.9 million shares, equal to approximately 9.6% of the total shares outstanding of Petrolia, and may be completed based on the existing Board authorization approved by the general meeting of Petrolia on May 10, 2005.

The proceeds from such a private placement will be used to finance Petrolia's investment in Petrojack ASA and for general corporate purposes.