Petrolia ASA (Petrolia) proposes to amend the bond agreement for ISIN NO0010440258, including an extension of the maturity date from 20 June 2012 to 19 June 2015. If the Bondholder Meeting approves the proposal, an incentive fee of 1% of par value will be paid to all bondholders. In addition, Petrolia proposes to increase the liquidity in the bond by changing the denomination of each bond from NOK 500 000 to NOK 1.

- Following the bondholder meeting 9 February, Petrolia has been in contact with several key bondholders. With the recent fall in short- and long term interest levels, we believe an interest of 12 % is attractive, especially taken into account the equity increases during the last year and the solid EBITDA development in the OilService subsidiary IOT Group. In addition, we are proposing a bondholder incentive fee of 1 % if the amendment is approved and expect an increased liquidity with the new bond structure, says Kjetil Forland, Managing Director of Petrolia.

The bond issue was originally NOK 500 000 000 and has an outstanding balance of NOK 344 500 000 due for the final instalment 20 June 2012. Petrolia has no other long term outstanding debt.

- In line with the bond agreement, Petrolia repaid NOK 100 million in 2011 and has repurchased and discharged an additional NOK 55.5 of the bond. In addition, the company has strengthened the balance sheet by issuing over 200 000 000 new shares, demonstrating the shareholders willingness to improve the balance sheet and the working capital. With the improvement of the bond agreement, in addition to the strengthening of the company´s underlying EBITDA and balance sheet, we believe the proposal is attractive for the bondholders, says Forland.

The summons for the Bondholder Meeting is enclosed.

Bergen/Oslo, 29 May 2012.

For additional information, please contact

Kjetil Forland                                                                                  Sølve Nilsen

Managing director                                                                          Finance Manager

Petrolia ASA

Phone: +47 93 24 00 27                                                                 +47 951 79 269


About Petrolia

Petrolia ASA has three business segments: E&P, Drilling & Well Technology and OilService and is listed on Oslo Stock Exchange under the ticker code PDR. The core activity includes Petrolia Norway AS, an independent oil & gas company approved as a licensee on the Norwegian Continental Shelf. The company holds 10 per cent of the Ulvetanna prospect and 30 per cent of PL 506S, PL 506BS, PL 506CS and 506DS. In addition, Petrolia ASA owns Independent Oil Tools  AS, a leading rental equipment company for the global oil industry. The company employs a staff of around 250 highly competent employees worldwide.

About Us

Oil & Gas division: Petrolia Norway AS maximizes field potential through innovative exploration and increased oil recovery technology from mature areas on the Norwegian Continental Shelf, leveraging on the extensive industry experience of the Petrolia Norway team. Petrolia Norway AS is qualified as a licensee for the Norwegian Continental Shelf. The company currently holds 50 per cent of the PL674 license, 30 per cent of PL 506S, PL 506BS, PL 506CS and PL 506DS and 10 per cent of PL 628. The company is wholly owned by Petrolia SE and has offices in Bergen, Stavanger and Oslo. Through Petroresources Ltd (47.24 per cent owned) the division has economic interests in licenses in Africa and the Middle East. OilService division: The company´s involvement in oilfield services began through the acquisition of Independent Oil Tools AS in 2007. Total investment in equipment has subsequently exceeded USD 200 million. The investments were largely financed by Petrolia and in addition financial leases of more than USD 40 million were obtained. The division has developed into a leading international equipment rental group with a global presence. This division owns drill pipes, test strings & tubing, handling & auxiliary tools and other equipment. In addition, the division provides associated services like tubular running services through Premium Casing Services Pty Ltd in Australia and New Zealand. The OilService division benefits from an excellent track record of availability, technical compliance, experience and performance. It has a well-established, large, international client base, including a portfolio of contracts in place with numerous major oil service companies, oil companies and drilling contractors. Drilling and Well Technology division: In 2012, a subsidiary of Petrolia SE acquired two land rigs which are presently located in Romania. The drilling rig has completed 18 wells since it commenced a one and a half year contract in Romania. The contract is with a large oil company and is to be completed by the end of this year. The rig has proven to be efficient in line with expectations for the drilling activities, as well as fast and efficient mobilisation and demobilisation between wells. The rig is currently being marketed to a certain number of potential customers within Europe and other commercially attractive areas. The work-over land rig is being marketed and will be mobilised once a LOI is signed. Both rigs are managed by TM Drill, a Romanian land drilling contractor, in which Petrolia has a 19.66% interest. The division has started to build in-house competence within land drilling activities and has employed a number of skilled employees to be able to expand within this segment.