Petrolia Says 1Q07 Results Positive

On April 28, 2007 SS Petrolia commenced a five month contract with Island Oil and Gas at a rate of US $300,000 per day, up from US $175,000 per day on the previous contract. Following the current contract, SS Petrolia will embark on 913 day contract with PEMEX, in the Gulf of Mexico, starting ultimo October 2007, at a contract value of US $269 million.

DS Deep Venture (50% owned through Venture Drilling AS) will start on an 18 months contract with ExxonMobil in May 2007. The value of the contract is in the range of US $200-220 million.

Petrolia Drilling ASA controls 43.8 % of Petromena ASA, building three modern, semisubmersible drilling rigs (PetroRig I, II and III) at the Jurong Shipyard in Singapore. The rigs are harsh environment 6th generation units designed for drilling in ultra deep waters in areas such as Brazil, the Gulf of Mexico and West Africa. PetroRig I and II have recently entered into five year contracts with Petrobras with gross values of US $700 million and US $645 million, respectively. PetroRig III is being actively marketed and tendered for contracts in all relevant operating areas worldwide.

Petrolia Drilling ASA also has exposure to the jackup segment through its 39.9% share in Petrojack ASA. Petrojack has two modern jackup rigs (375 water depth capacity) under construction at Jurong. In addition, Petrojack controls 21.2% of Petrolia Drilling ASA and 27.9% of Petroprod Ltd. Petroprod is converting three Aframax tankers to FPSOs at Jurong, and has recently ordered an enhanced CJ70 jackup rig from Jurong. The CJ70 Jack-up rig is a large, harsh environment drilling rig also capable of hosting production equipment enabling combined and simultaneous drilling and production. The unit will comply with Norwegian sector regulations and will be the largest jackup rig ever constructed.

Petrolia Drilling's book value of equity increased in the 1st quarter 2007, as a result of positive results, incorporation of Independent Oil Tools AS and the completion of a share capital increase in connection with the purchase of Petrojack shares. As of March 31, 2007, total equity equals MNOK 1,954, up from MNOK 1,399 as of December 31, 2006. The balance sheet incorporates the 43.8% ownership in Petromena ASA and 39.9% ownership in Petrojack ASA. SS Petrolia has a book value of MNOK 156, which reflects historic cost, including upgrades, adjusted for depreciation. The market value of the rig is believed to be higher.

Petrolia Services AS, a 100% owned subsidiary of Petrolia Drilling ASA, purchased 100% of the shares in Independent Oil Tools AS for MNOK 380 in January 2007. The purchase is incorporated in the accounts of the Petrolia Drilling Group from January 25, 2007.