Petrolia Sees Positive Reception for Recent Bond Issue

Petrolia Drilling ASA advises that the bond issue recently announced was oversubscribed. The Board of Directors of the Company is pleased with the response from both Norwegian and international institutional bond investors.

The bond issue will be NOK 500 million with a coupon of 12.00% p.a. with semi-annual interest payments. The bonds will be unsecured. Settlement date is expected to be ultimo June 2008, and the final maturity date will be in June 2012.

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.

The bond issue is subject to finalized loan documentation and approval of loan documentation by the Trustee, Norsk Tillitsmann ASA, and early redemption notice sent to the Trustee for the outstanding NOKm 250 bond issue. Notice regarding early redemption of PDR03 will be sent to the Trustee shortly.

It is Petrolia's opinion the new bond issue will increase the Company's flexibility and strengthen the company's long term financing. The bond issue was managed by Pareto Securities AS.