MAY 2008 PRODUCTION UPDATE AND STATUS NEW DRILLING CAMPAIGN

Rocksource ASA (“Rocksource”) is pleased to announce that the May 2008 production from its US subsidiaries averaged 2,500 boepd (barrels of oil equivalent per day). This is similar to the April production level and compares to an average production in 1st quarter 2008 of 2,163 boepd. The stated production numbers are based on metered daily production, and may thus differ slightly from the final production volumes that will be used for accounting purposes due to changes in stock volumes etc.

As reported last month, production from the last well had to be constrained until a permanent tie-in could be established which happened late in May. Advantage was taken of the period of constrained production to undertake a number of well interventions, including re-completions, which we were able to execute with minimal disruption to production. These well interventions are expected to ensure improved regularity in coming months.

A drilling rig has been contracted for the first two wells in the 3rd drilling campaign and the initial well is scheduled to spud early July. All permits for drilling these two wells are in place. The rig situation onshore Texas is currently very tight and various options are being considered for continued employment of this rig.

Another drilling rig has been contracted for the Shockaloo exploration prospect in Mississippi, and this well is scheduled to be on location mid-July. All required permits are in place and the drilling site will be ready mid-June. The prospect has a reserve potential in excess of 1 million barrels of recoverable oil. The well is a shallow well that will be drilled to less than 7,000 feet and at a cost of less than USD 1 million fully completed for sales. Should the exploration well be successful, further wells shall be required to produce the expected reserves.

The onshore drilling campaign will target proven reservoir intervals, and exploration prospectivity to secure further growth in low cost reserves and production. Rocksource is committed to further grow production and cash flow from the US while maturing opportunities for high impact EM based exploration wells.


Oslo, 4.6.2008
Rocksource ASA


Trygve Pedersen
CEO

+47 90 09 77 41