Rocksource Sees US Issues with Production, Rig Delay

August 2008 production from Rocksource ASA US subsidiaries averaged 2,486 boepd (barrels of oil equivalent per day). This compares to the reported July production of 2,630 boepd and 600 boepd in August 2007. The stated production numbers are based on metered daily production, and may thus differ slightly from the final production volumes that will be used for accounting purposes due to changes in stock volumes etc.

Production in August was stable during the first 3 weeks but a technical down-hole problem with one of the wells caused production to be lowered until repairs can be undertaken without risk of reservoir problems. Repair work is planned for early September.

The drilling rig contracted for the 2008 drilling campaign has been further delayed due to problems related to the last well drilled for another operator. The rig is currently expected to arrive on location in the first week of September. This two months delay will cause a postponement of the planned production increase from new production wells, but the overall 2008 target of 2,500 boepd remains as previously announced.

In order to drill the two exploration wells in the 2008 campaign without disrupting the drilling of the development wells, Rocksource has been able to secure another drilling rig which is scheduled to be on location mid-October. This will bring the overall drilling campaign back on schedule without additional costs, and will allow the earliest possible contracting for a 2009 drilling campaign resulting from success in the 2008 exploration wells.