StatoilHydro Drills a Duster at Volve South Prospect

The drilling of the exploration well 15/9-F-15 S on the Volve South prospect in the license PL 046 on the Norwegian continental shelf has now been finalized. The well was drilled into a reservoir section in the Hugin formation to the total depth of 4,090 meters. No hydrocarbons were encountered. The well will now be plugged and abandoned.

This is the first exploration well that has been drilled as part of the ongoing exploration drilling program in the Volve field and the surrounding area. The Volve South prospect was one of three possible prospects with potential upside resources to be explored around the main Volve field.

PA Resources Norway AS has a 10% working interest in the PL 046 license. Operator is StatoilHydro (59.6%) and the other partner is ExxonMobil Exploration and Production Norway (30.4%).

With reference to the press release announced on the December 1, 2008, PA Resources AB has signed a Share Purchase Agreement concerning the sale of the wholly owned subsidiary PA Resources Norway AS including all assets on the Norwegian continental shelf to Bayerngas Norge AS, a subsidiary of the German gas company Bayerngas GmbH.

The license PL 046 is included in the assets concerned. The Sale and Purchase agreement is subject to the necessary approvals by Norwegian authorities, and has an effective date of January 1, 2009.