Report for the financial year and the quarter ended December 31, 2005

• Oil revenue increased by 232% to MUSD 73.5 (MUSD 22.1) for the financial year and by 300% to MUSD 31.3 (MUSD 7.8) for the quarter. • EBITDA amounted to MUSD 25.7 (MUSD 24.7) for the financial year and to MUSD 8.6 (MUSD 22.6(1) ) for the quarter. • The financial year net result amounted to MUSD 0.2 (MUSD 17.41) and the quarterly net result amounted to loss of MUSD 7.1 (profit of MUSD 20.11). • The net result was affected by an acceleration in the depletion charges based on recent SPE estimates of oil reserves and future capital expenditures. The depletion charge increased to MUSD 14.0 (MUSD 1.0) for the financial year and MUSD 10.4 (MUSD 0.1) for the quarter. • The net result corresponds to USD 0.0 per share for the financial year (USD 0.1 per share). For the quarter, the earnings per share were a loss of USD 0.0 (profit of USD 0.1 per share). • Oil production increased by 153% to 2,976,312 barrels for the financial year and by 193% to 1,274,443 barrels for the quarter. • In early 2006, the Saneco acquisition was closed, USD 153 million in equity was raised and a strategic alliance was formed with Repsol YPF. 1) Prior year numbers include a MUSD 21.4 pre-tax reversal of non-cash impairment charges recorded in 2003.