Monitor OK with Loan Agreement

Monitor Oil entered into a bond loan agreement on March 16, 2007 with Norsk Tillitsmann ASA on behalf of certain bondholders for a series of bonds at a maximum amount of U.S. $50 million. In relation to the updated status of the Buoy Project, the company has agreed with the Bondholders amendments to reflect the present circumstances and such agreement has been confirmed in a Bondholders’ meeting on October 22, 2007. The Agreement includes (i) an increase of the interest margin from 1,400 basis points to 1,900 basis points over LIBOR (ii) a grant of a put-option, if Bondholders in aggregate of 50% or more requires, and (iii) an engagement with a debt restructuring advisor.