PROPOSAL TO EXTEND AND AMEND BOND AGREEMENT

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

Mail: kjetil.forland@petrolia.no                                                       solve.nilsen@petrolia.no

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.