Ener Acquires 45% Stake in Jotun from Enterprise Oil Norge

Ener Petroleum

Ener Petroleum has acquired a 50% holding in PL027B, including a 455 stake in the Jotun Field, from Shell for an undisclosed sum. The transaction represents Ener's first entry into the Norwegian Continental Shelf and will secure the company around 15 million barrels of petroleum reserves, a 5,500 barrels per day initial petroleum production as well as access to a number of exploration prospects. The acquisition is a considerable achievement for Ener.

The transaction is effective January 1, 2006 and is subject to the consent of the Ministry of Petroleum and Ministry of Finance. Final approval of the transaction is expected during the fourth quarter of 2006.

The purchase consideration will be funded entirely through a combination of a senior acquisition financing facility arranged by Standard Bank Plc and a seller's credit.

Mr. Per Gunnar Loge, CEO of Ener says:

"Through this transaction Ener will acquire about 15 million barrels of recoverable oil equivalents (P1 plus P2 reserves), of which more than 905 is oil and as well as an attractive exploration portfolio. Present production levels on Ener's hand are around 5,500 barrels of oil equivalents per day expected to increase significantly towards the end of the year as a result of a production enhancement drilling program to commence during the third quarter.

Ener has its focus on enhanced recovery from fields in production and selective exploration efforts in areas near existing infrastructure. It is our view that the recovery from the Jotun field can be increased further through extensive use of advanced production technologies and that the production license in addition has several major unexplored prospective structures that could be exploited using the existing infrastructure on the Jotun field. The field is operated excellently with ExxonMobil as operator, and we are looking forward to contributing to focus even further on the substantial enhanced exploitation of the entire Jotun area.

Through this acquisition we have met our first important milestone since the pre-qualification of the company by the Ministry of Petroleum and Energy in March this year. Acquiring PL 027B and Jotun is well in line with Ener's business strategy and objectives, as they have earlier been communicated to the investor market. The Jotun acquisition will give Ener a solid basis to build and expand its future activities on the Shelf."

Ener Petroleum ASA is a privately-owned Norwegian oil company quoted on the OTC A-list (ENER) in Oslo.