Artumas Group Successfully Closes Private Placement

Artumas Group reports the successful closing of the Private Placement announced on October 11, 2006, for gross proceeds of US $16.5 million (111 million NOK). The Offering was over-subscribed.

The Offering comprised of 3.0 million shares priced at 37,00 NOK (2.9% discount to closing price on 11 October) in a combination of new shares and existing shares, equal to approximately 16% of the existing number of outstanding shares in the company. The Offering consisted of 1.8 million shares issued from Treasury, and 1.2 million shares borrowed from members of Artumas' management, without any compensation.

The Offering was subscribed by Norwegian and International institutional investors.

ABG Sundal Collier ASA, the Lead Manager and First Securities, the Co-lead Manager, will undertake to file a prospectus with the Oslo Bors whereby the borrowed shares will be returned to management upon the issuance of shares under the prospectus.

Net proceeds of the offering will be used to finance capital expenditures, including the ongoing drilling program of the Company's Mnazi Bay concession, exploration activities in the Rovuma Onshore Block in Mozambique and assessment of commercial gas off-take opportunities.

Stephen Mason, President and CEO stated: "Artumas is pleased with the successful closing of the offering, which is an important step to secure additional capital for the large scale development of the Mnazi Bay gas field in Tanzania as an important energy provider to the East African region. Artumas will further explore for oil potential in the Mnazi Bay license and is planning for exploration activities in the newly awarded license in Mozambique."