Private Placement of Common Shares and Convertible Bond

Artumas Group has retained ABG Sundal Collier Norge ASA, First Securities ASA, and DnB NOR Markets, to advise and effect an equity issue and convertible bond issue offered concurrently, directed towards professional Norwegian and international investors after the close of the Oslo Bors today. The gross proceeds from the combined equity and convertible bond issues are expected to be US$130 - 170 million.

The net proceeds of the offering will be used to finance the company's work program including the seismic, exploration and development programs on the company's Mozambique Rovuma Onshore Block in Mozambique, Artumas' participating interest in the Offshore Area 1 Block in Mozambique, and the company's Mnazi Bay concession in Tanzania.

Gross proceeds from the equity issue are expected to be USD 70 -100 million, constituting approximately 33 - 48% of the existing number of shares outstanding. The equity issue will be carried out through a book-building process which will close on or before 08:30 (CET) on 8 November 2007. A prospectus for the listing of the new shares will be filed with Oslo Børs shortly after close of the private placement. Settlement date for the new shares is expected on or about 14 November 2007.

The Gross proceeds from the convertible bond issue are expected to be USD 60 - 70 million in principal amount of convertible bonds with a five-year term. The bonds are senior unsecured bonds and are convertible into common shares of Artumas. The convertible bonds are expected to have an annual coupon in the range of 5.5% - 6.5% payable semi-annually and a conversion premium of 35% - 40% over the issue price of the Artumas-shares issued in connection with the simultaneous equity offering. The convertible bonds will be issued and redeemed at 100% of their principal amount. Artumas has the right to call the bonds after three years if the closing price of the Artumas-shares on Oslo Børs has exceeded 150 percent of the conversion price for at least 20 trading days within a period of 30 consecutive trading days. The bonds are expected to be settled on or around 20 November 2007.

ABG Sundal Collier Norge ASA is acting as joint Lead Manager in the equity issue and Lead Manager in the convertible bond issue. First Securities ASA is acting as joint Lead Manager in the equity issue and Co-Manager in the convertible bond issue. DnB NOR Markets is acting as Co-Manager of the equity issue.