Possible merger of the oil department of Independent Oilfield Rentals (IOR) Ltd.

The Board of Directors of Independent Oilfield Rentals has formally approved to start merger negotiations of their oil department with Petrolia ASA.

The Independent oil department has both production and exploration license interests in the Middle East and North Africa (MENA).

The estimated merger value of Independent`s oil department is between USD 10 –50 mill, depending on the future political and operational situation in the MENA area. Value of a share of an exploration well presently being drilled in North Africa, is not included.

The effective date is planned for 1. January 2012 after the Registered Head Office of Petrolia is moved to Cyprus.

The Final Merger Agreement is subject to approval by the Board of Directors and shareholders general meetings in both companies as well as satisfactory discussions with bondholders. The Consideration is agreed to be Petrolia shares. It is expected that the agreement will be completed in first half of 2012.

Petrolia`s chairman, Berge Gerdt Larsen is indirectly owner of about 10 percent of Independent Oilfield Rentals (IOR) Ltd.

Contact persons:

Managing Director, Kjetil Forland (kjetil.forland@petrolia.no)

Finance Manager, Sølve Nilsen (solve.nilsen@petrolia.no)