PRELIMINARY RESULT AS PER 4TH QUARTER 2010

Highlights • Revenues and operating profit before depreciation for Petrolia Drilling ASA for 2009 was USD 70.7 million and USD 25.5 million respectively. Profit for the year was USD -4.9 million for continuing operations. • Revenues in 2009 came from Petrolia Services (100% owned subsidiary). The contribution to profit before depreciation from Petrolia Services was USD 27.6 million. The EBITDA-margin was 39 % compared to 42 % for the fiscal year 2008. This is mainly due to one-off costs associated with entering into new markets and some product development. The expected margin going forward is slightly higher. • Book value of drilling equipment used by Petrolia Services was USD 131.2 million year end (depreciated over five years). During the last three years Petrolia Drilling has invested approximately USD 200 million in new equipment. • On 21 December 2009, Oslo Byfogdembete decided to open bankruptcy PetroMENA ASA, 51.5% owned by Petrolia Drilling ASA. PetroMENA ASA is deconsolidated from this date in the accounts. The effect increased profit by USD 118.4 million and is presented as profit for the year for discontinued operations. The main explanation for the positive effect is recognition of gain from sale of SS Petrolia in 2007 which previously was eliminated in the group accounts and derecognition of interest on bond loans in PetroMENA. • Operating profit before depreciation for Venture Drilling (50% owned) was USD 104.9 million in 2009. Net result after tax was USD 67.6 million. The performance of the Deep Venture has been outstanding in 2009 and until November there was no zero rate. In the fourth quarter, however, there was a BOP problem causing 10 days off-hire. Deep Venture’s manager, Larsen Oil & Gas Ltd, has withheld cash flow from operations and Venture Drilling AS has started court proceedings in Scotland claiming release of the actual amounts. • Petrolia Drilling ASA controls 30% of Deepwater Driller Ltd (former Larsen Rig Ltd) which is building a new deepwater semisubmersible drilling rig at Jurong Shipyard. Deepwater Driller Ltd has been in close discussions with the Yard on the payment profile, and has come to a supplementary agreement with a revised payment profile. Under the supplementary agreement, Deepwater Driller Ltd paid instalment of USD 20 million in November 2009 and USD 20 million in February 2010. The Board of Directors of Petrolia Drilling is pleased with the discussions, and the revised payment profile, which will give the owners of Deepwater Driller Ltd flexibility necessary to raise additional financing for the Rig. • Total equity equaled USD 185.3 million as of 31 December 2009, including a minority interest of USD 2.5 million. Book value of equity per share equaled USD 0.18 (NOK 1.04 per share) as of 31 December 2009. • In January 2010 the company terminated the business manager agreement with Larsen Oil & Gas AS, cf. note 6. Financial information PetroMENA ASA is deconsolidated from 21 December 2009 due the bankruptcy. The effect is presented as profit for the year for discontinued operations. Comparative figures for the result in 2008 have been recalculated and are presented in the financial report. Profit and loss for 2009 Total revenues were USD 70.7 million for the fiscal year 2009 related to the oilfield services segment. Total revenues for the fiscal year 2008 equaled USD 81.8 million. Operating profit before depreciation was USD 25.5 million for the fiscal year 2009 compared to USD 28.3 million in 2008. Total operating expenses equaled USD 45.2 million for the fiscal year 2009 mainly related to the oilfield services segment. Total operating expenses YTD 2008 was USD 53.5 million. Operating profit for the fiscal year 2009 equaled USD -14.9 million, including USD 40.4 million in depreciation of equipment related to Petrolia Services. Operating profit for the fiscal year 2008 equaled USD -0.9 million, including USD 29.2 million in depreciations. The profit for 2009 from continuing operations was USD -4.9 million compared to USD -111.1 million in 2008. Venture Drilling contributes with a positive result after tax of USD 33.6 million. Result from associated company is negative with USD 6.7 million, comparative figure for 2008 was USD -113.7 million. Net financial items of USD -12.9 million include interest on bond loans with USD 9.8 million. Profit for the year from discontinued operations (PetroMENA ASA) for 2009 is included with USD 118.4 million, comparative figure for 2008 is USD -395.3. Analysis of the profit for the year from discontinued operations is presented in note 2. Profit and loss for the fourth quarter 2009 Total revenues were USD -48.8 million for the fourth quarter 2009 due to deconsolidation of PetroMENA ASA. Revenues from the oilfield segment were USD 22.5 million in the fourth quarter. Total revenues in the fourth quarter 2008 equaled USD 16.6 million. Operating profit before depreciation was USD 3.0 million for the fourth quarter 2009 compared to USD 7.7 million in 2008. Total operating expenses equaled USD -51.7 million for the fourth quarter 2009 due to deconsolidation of PetroMENA ASA. Operating expenses related to the oilfield services segment was USD 16.6 million in the fourth quarter compared to USD 8.9 million in 2008. Operating profit equaled USD -8.0 million for the fourth quarter 2009, including USD 11.0 million in depreciation of equipment related to Petrolia Services. Operating profit equaled USD 0.8 million for the fourth quarter 2008, including USD 6.9 million in depreciations. The profit from continuing operations for the fourth quarter 2009 was USD 94.8 million. Venture Drilling contributes with a positive result after tax of USD 7.4 million. Result from associated company is positive with USD 0.9 million. Net financial items of USD 94.6 million are mainly related to the deconsolidation of PetroMENA ASA. Profit from continuing operations for the fourth quarter in 2008 was USD -64.0 million. Enclosure : Preliminary result as per 4th quarter 2009. For further information, please contact : Mr. Bernt Skeie, CEO, phone +47 950 46 031. Bergen/Oslo, 25 February 2010 Board of Directors