Valhalla Oil and Gas Completes Private Placement

Valhalla Oil and Gas AS completed a successful NOK 200 million private placement on February 28, 2007 through a concurrent NOK 100 million equity and NOK 100 million convertible bond placement. The placement was well oversubscribed with strong demand from investors both internationally and in Norway.

In addition to the equity placement of 7.4 million shares, Valhalla Oil and Gas converted its outstanding NOK 29 million shareholder loan into an additional 2.1 million shares. The company now has approximately 11 million shares outstanding.

The shares in Valhalla Oil and Gas commenced trading on the OTC list of the Norwegian Securities Dealers Association on March 2, 2007 with the ticker VAOG.

The NOK 100 million convertible bond private placement was issued with a 9% annual coupon and a NOK17.50 conversion price. The bond will mature on December 31, 2011.

Fondsfinans acted as a sole manager on the private placement of shares and convertible bonds.

The proceeds of the private placement allow the company to develop its existing licenses and initial seismic work on the licenses received in the UK 24th round.

Seismic data acquisition on the PEDL 150 UK onshore license began on March 26th and will take approximately 4 weeks to complete, followed by 8-10 weeks for data processing.