Petrolia Drilling Approves Private Placement

The Board of Directors of Petrolia Drilling ASA has approved a private placement of 44,857,000 new shares (equal to approximately 9.6% of the share capital as per December 20, 2005), at a subscription price of NOK 2.67 per share, corresponding to a total subscription amount of NOK 119,768,190.

Following registration of the new shares in the private placement, the share capital of Petrolia Drilling will increase from NOK 233,679,357 to NOK 256,107,857, and the number of shares, each with a par value of NOK 0.50, will increase from 467,358,714 to 512,215,714.

The private placement was over-subscribed.

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