Petrolia Drilling Completes Private Placement

Petrolia Drilling has on December 14, 2006 completed a private placement of a total of 77,000,000 new shares, an increase of 9.97%, at a subscription price of NOK 3.44 per share. The gross proceeds from the private placement amounts to NOK 264,880,000. The private placement was significantly over-subscribed.

The proceeds from the private placement will be used for general corporate purposes and to take part in future drilling rig investments in accordance with Petrolia Drilling's current strategy.

Upon registration of the new shares issued in the private placement, Petrolia Drilling's share capital will amount to NOK 424,695,999, corresponding to 849,391,998 shares, each with a par value of NOK 0.50.

The private placement was managed by ABG Sundal Collier.