EXPLORATION UPDATE: EM TEST OF NCS PROSPECT AND LICENSING ROUND STATUS

The Rocksource Group (“Rocksource”) is continuing to build up its exploration portfolio with the aim of delivering a drill queue of high-impact, low risk exploration wells. The process involves the acquisition of acreage and the testing of prospects with Controlled Source Electro-Magnetic (CSEM) surveys, integrated with more traditional data. Licences that show positive results will then be accelerated to drilling, while others are dropped. Rocksource aims to drill its first CSEM based well in 2008. The following information provides a progress update on some of the ongoing activities.

ROCKSOURCE TO TEST NCS PROSPECT WITH CSEM:
Rocksource will run a CSEM survey to test the “Cyclops” prospect in PL 456. The licence covers block 17/6 and part of block 17/9 on the Norwegian Continental Shelf and was awarded to Rocksource as part of the APA 2007. The company holds a 100% interest in the licence and operatorship.

The “Cyclops” prospect is located just north of the Bream and Brisling oil discoveries and is part of the same Middle Jurassic play. The prospect is estimated to contain 100 million barrels of recoverable oil. The CSEM data will provide valuable information about the presence and extent of oil in the prospect.

The acquisition is expected to occur in late Q3 2008 and the data will be analysed using Rocksource’s proprietary software. Based on these results a decision will be made on whether to acquire 3D seismic over the prospect. A drilling decision will be based on the combined assessment of CSEM and seismic data, with the goal of drilling in the first half of 2010.


ROCKSOURCE WELL POSITIONED FOR THE NORWEGIAN 20TH ROUND:
The Ministry of Oil and Energy announced the opening of the Norwegian 20th Round on Friday the 27th June 2008. Seventy-nine blocks in the Norwegian and Barents Seas are open for application by the deadline on the 7th November 2008.

The 20th Round offers opportunities to explore prospects with a significantly larger potential than commonly found in the APA areas, and so Rocksource has undertaken significant groundwork in preparation for the round. A regional evaluation was followed by the acquisition of 30 CSEM lines during 2007. The 2007 CSEM campaign tested 39 prospects which contain approximately 7.5 billion barrels of oil equivalent mean unrisked resources. The integrated conventional G&G evaluation and the results of the electromagnetic surveys enabled the company to high grade a selection of the blocks for the nomination process in January this year.

The open blocks announced by the Ministry fit well with the Rocksource’s goals and the company is well positioned for the round. The proprietary knowledge will now be utilised to high grade applications and designing attractive work programmes that will lead to cost effective and fast track exploration programmes. Rocksource is confident that it can now submit high quality, competitive applications which will secure the best acreage for drilling CSEM based wells in the forthcoming years. Awards are expected in 2009.


UKCS 25TH ROUND APPLICATIONS:
On May 21st 2008 Rocksource submitted applications for the UKCS 25th Seaward Licensing Round. The round is expected to be highly competitive with the Department for Business Enterprise and Regulatory Reform (DBERR, formerly DTI) announcing 193 applications from 131 companies. The company applications target areas which build on its current UK position and where its proprietary CSEM technology is a suitable tool for de-risking the identified prospectivity. Applications were made both on a sole basis and also with AMI partner groups. Awards are expected in Q4 2008.


Oslo, 15.7.2008
Rocksource ASA


Trygve Pedersen
CEO

+47 90 09 77 41


Tommy Sundt
CFO

+47 90 85 50 00