Petrolia to Issue Bond with Expected Maximum Gross of NOK 500M

Petrolia Drilling ASA is planning to issue a new senior unsecured bond with expected gross proceeds of maximum NOK 500 million. The net proceeds from the new bond issue will be used for early redemption of the existing PDR03 bond (NOK 250 million outstanding) according to prevailing call options under the PDR03 bond, and for general corporate purposes which may include investments in other companies / assets within the oil/offshore sector. Early redemption of PDR03 is subject to the new bond being fully subscribed. Settlement of the new bond is expected to be ultimo June 2008, and the new bond will mature in June 2012.

In the Company`s opinion, the refinancing of PDR03 will result in an improved capitalization of the Company and strengthen the Company`s long term financing.

Petrolia Drilling ASA has given Pareto Securities AS a mandate as arranger of the new bond issue.