Sagex Completes Private Placement, Prequalifies as Operator

Sagex Petroleum ASA has announced the successful completion of a private placement in two rounds during the summer 2008, raising a total of NOK 160 million in new equity.

The funds will be used towards planned exploration activities until the Company has revenue from the Causeway oil field on the UK Continental Shelf late 2009. The fundraising was completed within a short time period, targeting only selected investors in a second round following the first round completed in June this year.

The Company has an active exploration program in the UK, Norway, Denmark and the Faroes. Further, Sagex has prepared for several years to participate in the first Icelandic licensing round scheduled for first half 2009.

In North Africa, the Company is prequalified as Operator to participate in the 7th Licensing Round in Algeria and is well underway towards securing licences in Libya. Sagex plans for listing and an initial public offering of shares around 1Q09. Following these steps to further strengthen the capital base of the company and ensure a liquid stock, new business opportunities including corporate transactions will be pursued. The managers for the fundraising were First Securities, Tristone Capital and Landsbanki Islands.