Genesis Rationalizes North Sea Portfolio

Genesis Petroleum has relinquished its Promote Seaward Production License for Block 9/10c. Genesis is Operator for the block in which Lundin Heather Ltd has a 60% interest. The block was initially awarded (100%) to Genesis in 2004 as a Promote Award under the terms of which Genesis was obliged to commit to a well or relinquish, at this time.

Speaking for the Company, Gerry Harrison, Chief Executive, said, "Together with our partner, Lundin, we have completed extensive technical work on the Block which indicates the likelihood of a commercial discovery is lower than our initial prospect analysis indicated. Compared to several other exciting opportunities within our existing and anticipated portfolio, the risks associated with a well are too high to proceed."

Genesis also operates Block 9/5b (100%) and participates (17.5%) with both ConocoPhillips and Lundin on Blocks 9/14c and 9/15c and 40% with Lundin, only, on Block 211/28b. The Company is awaiting the results of applications under the current UK 24th Round and has also applied to be pre-qualified as a Licensee in Norway. Pre-qualification in Norway would ensure participation in the current Norwegian APA Round, with awards due in January 2007.