PETROLIA DRILLING ASA - BOND ISSUE COMPLETED

Reference is made to the press release sent
Thursday 29 May regarding a new bond issue in
Petrolia Drilling ASA (the `Company`). The bond
issue was oversubscribed, and the Board of
Directors of the Company is pleased with the
response from both Norwegian and international
institutional bond investors.

The bond issue will be NOK 500 million with a
coupon of 12.00% p.a. with semi-annual interest
payments. The bonds will be unsecured. Settlement
date is expected to be ultimo June 2008, and the
final maturity date will be in June 2012.

The net proceeds from the new bond issue will be
used for (i) early redemption of the existing PDR03
bond (NOK 250 million outstanding) according to
prevailing call options under the PDR03 bond, and
(ii) for general corporate purposes which may
include investments in other companies / assets
within the oil/offshore sector.

The bond issue is subject to (i) finalized loan
documentation and approval of loan documentation by
the Trustee, Norsk Tillitsmann ASA and (ii) early
redemption notice sent to the Trustee for the
outstanding NOKm 250 bond issue (ISIN: NO
001030199.7) (PDR03). Notice regarding early
redemption of PDR03 will be sent to the Trustee
shortly.

In the Company`s opinion the new bond issue will
increase the Company`s flexibility and strengthen
the Company`s long term financing.

The bond issue was managed by Pareto Securities AS.

For further information, please contact : Mr. Lars
Moldestad: phone +47 906 99 197.


Bergen/Oslo, 30 May 2008

Petrolia Drilling ASA, Board of Directors