Petrolia ASA - Approved prospectus and Rights Issue

Petrolia ASA (the ”Company”) – A public limited liability company organised under the laws of Norway.

Reference is made to the stock exchange notice dated 27 June 2011 and the Board of Directors’ resolution to carry out a Rights Issue of up to 50,629,837 New Shares at a Subscription Price of NOK 0.50 per New Share, with Subscription Rights for Existing Shareholders as of the end of 27 June 2011.

The Financial Supervisory Authority of Norway has approved the following Prospectus:

Rights Issue of up to 50,629,837 New Shares with Subscription Rights for Existing Shareholders as of the end of 27 June 2011.

Subscription period:
From and including 9 August 2011 to 23 August 2011 at 17:30 hours CET.

Trading in subscription rights:
From and including 9 August 2011 to 18 August 2011 at 17:30 hours CET.

The information contained in this Prospectus relates to a Rights Issue of up to 50,629,837 New Shares each with a par value of NOK 0.04 (the "New Shares") at a Subscription Price of NOK 0.50 per New Share, with Subscription Rights for Existing Shareholders of the Company as of the end of 27 June 2011.

The Existing Shareholders will receive Subscription Rights to subscribe for the New Shares based on their shareholding in the Company as of the end of 27 June 2011. Each Existing Shareholder will receive one Subscription Right for every two shares in the Company held as of the end of 27 June 2011.

The holders of Subscription Rights will be entitled to subscribe for and be allocated one New Share for every Subscription Right held. The Subscription Rights will be registered on each Existing Shareholder's account in the VPS. Oversubscription and subscription without Subscription Rights is permitted.

Investing in the Company involves risks. See section 2 "Risk Factors" in the Prospectus.

It is expected that payment for the New Shares will be made on or about 30 August 2011. Trading in the New Shares on Oslo Børs is expected to commence on or about 5 September 2011. The New Shares will be delivered through the facilities of the VPS.

SUBSCRIPTION RIGHTS NOT USED TO SUBSCRIBE FOR NEW SHARES BEFORE THE END OF THE SUBSCRIPTION PERIOD OR NOT SOLD BEFORE 18 AUGUST 2011 AT 17:30 HOURS CET WILL LAPSE WITHOUT COMPENSATION AND CONSEQUENTLY BE OF NO VALUE.

The Manager of the Rights Issue is First Securities AS. The prospectus together with subscription form will be available on the following web sites: www.petrolia.no or www.first.no

The prospectus together with subscription form will also be available free of charge at the business offices of Petrolia ASA and First Securities AS.

Petrolia ASA - Bergen/Oslo, 3 August 2011

For further information, please contact Mr. Kjetil Forland, Managing Director, e-mail: kjetil.forland@petrolia.no

This information is subject of the disclosure requirements acc. to § 5-12 vphl (Norwegian Securities Trading Act)