Rocksource, ONGC Enter JV to Explore Indian Continental Shelf and More

The Norwegian oil company Rocksource ASA and the Indian state oil company ONGC (Oil and Natural Gas Corporation Limited) have signed a Cooperation Agreement to develop exploration partnerships on the Indian continental shelf and Internationally. The agreement was signed by Mr G.K. Bhatnagar, Head of EXCOM - BD JV Group of ONGC and the CEO of Rocksource ASA, Trygve Pedersen.

Rocksource Chairman and cofounder Dag Dvergsten stated "this is a significant milestone for Rocksource as it establishes a framework for joint exploration efforts with one of the largest E&P companies in Asia. It allows us to apply our proprietary electromagnetic (EM) technology in a world class hydrocarbon province, with a tremendous exploration potential. We believe that our technology when combined with ONGC`s understanding of the Indian Continental Shelf will be value creating for both companies. The fact that ONGC has chosen Rocksource as a partner is also a clear confirmation of our technology and competence."

D.K. Pande, Director of Exploration for ONGC stated "Rocksource has developed a unique exploration technology that we hope will contribute to improving the success rate in our exploration activities. ONGC is uniquely placed with respect to acreage on the Indian margin."

The two companies share an intention to perform joint exploration activities based on the results of the Rocksource EM technology and integrated prospect evaluation. They will also participate in joint applications for new exploration acreage where EM technology can be applied. ONGC has already acquired substantial amounts of EM data on the Indian Continental shelf.

ONGC is India's largest E&P company and has a state ownership share close to 75%. The company controls approximately 80 percent of India`s oil and gas production, with more than one million barrels of oil produced per day. The company has a strong international foothold with exploration acreage in Asia, Africa and South America.

Rocksource is a Norwegian independent exploration and production company listed on the Oslo stock exchange (ticker: RGT). The company has exploration licences in Norway and the UK as well as production from two fields in the USA. The company`s core abilities are related to its competence within exploration and production technology, including the processing and integration of EM data with other geological and geophysical data.

In 2006 Rocksource started systematic screening of global basins for EM suitable areas to best exploit its proprietary exploration technology and grow its portfolio. The company is in the process of building an international portfolio of exploration and production. The Cooperation Agreement with ONGC is a significant milestone in this strategy.