Revus Releases Interim Report

Revus Energy on Friday announced total operating revenues of NOK 77.6 million (USD 12.5 million) in Q2 2006. The company`s EBITDA in Q2 2006 was NOK 17.4 million (USD 2.8 million).

Revus Energy today announced total operating revenues of NOK 77.6 million (USD 12.5 million) in Q2 2006. The company`s EBITDA in Q2 2006 was NOK 17.4 million (USD 2.8 million). Revus currently has interests in three producing fields: Brage, Veslefrikk and Murchison. Production of oil and gas in the second quarter averaged 2 096 boepd, which was 5 % above the company`s forecast. Revus realized an average oil price of USD 70.04 per barrel in the second quarter, compared with an average oil price of USD 62.83 per barrel for the first quarter 2006 and USD 55.45 per barrel for the full year 2005.

The half year gave an operating income of NOK 14.9 million. A loss of NOK 17 million in net financial items caused mainly by unrealized exchange losses produced a net loss after tax of NOK 5.3 million.

The operating income before financial items and tax for Q2 2006 was NOK 6.9 million, compared with a loss of NOK 0.4 million in Q2 2005.

Cash flow from operations for the first half of 2006 was NOK 40.8 million, compared with NOK 99.3 million in the corresponding period in 2005.

Net financial items were negative with NOK 11.5 million in second quarter 2006, of which NOK 12.9 million represents unrealized foreign exchange losses related to the company`s long term receivables and accretion of the abandonment provisions. Provisions for current and deferred tax for the first half of 2006 amounted to NOK 3.1 million.

Investments in Q2 2006 amounted to NOK 22.4 million, of which NOK 8.9 million is related to production activities and NOK 10.9 million is related to exploration activities.

Revus` total balance sheet as at 30 June 2006 was NOK 1 036.3 million compared with NOK 742.4 million at year-end 2005. The increase in the balance sheet reflects the raising of an unsecured bond of NOK 300 million. The term of the bond loan is five years. Total cash and cash equivalents as at 30 June 2006 amounted to NOK 450 million. The company`s equity ratio was 40 per cent. As at 30 June 2006, Revus had 32 999 632 shares outstanding.

The sale of Fram B to Bayerngas announced on 9th August will have a material impact on the balance sheet of Revus Energy. The additional cash will bring net cash up to approximately 600-800MNOK (depending on operational cashflow in the completion period of the transaction) and the equity ratio up to approximately 57%. These effects will be accounted for when the transaction has been approved by the Norwegian authorities and completed by the parties.

Exploration and appraisal drilling activity will hereon increase. The Blåmannen and Astero wells will reach their target reservoirs in the third and fourth quarters respectively. The results from these wells will clarify the reserves and production potential of these oil accumulations. The first exploration well in the Bredford Dolphin drilling campaign, on the Lie prospect in PL 305, is expected to commence operations towards the year end.

In 2007 the company expects to participate in 7 exploration and appraisal wells.

Revus is evaluating the potential for license applications in APA 2006 to be submitted end September with awards expected in December.