LETTER TO SHAREHOLDERS – NO 3 – 2008

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Preliminary results after geological study of the Oilsand license of Norwegian Oil Sand Corp.
carried out by the company DeGolyer & MacNaughton Canada Ltd., shows;

  • 92 mill. Barrels of oil in layers of sand with larger thickness than 10 m.
  • 244 mill. Barrels of oil in layers of sand with thickness between 5-10 m.
  • 296 mill. Barrels of oil in layers of sand with thickness between 0 to more than 10 m.

This means that we can now start planning a smaller development of the oilsand field. In order to secure a best possible development plan, the company will initiate the process of drilling minimum 3 inspection wells in order to establish the possibilities of converting these to production- or injection wells. This process will, however, demand an increase in capital and loans.

These results will provide us with a basis for getting started with an inspection- and development program during the fall of 2008, and the administration of the company is of the opinion that a development can be initiated within 2 years assuming that financing can be provided.

As informed in January of this year, the company has defined the following goals / stages of the further development:

i) Secure more and larger agreements and licenses
ii) Initiate development and upgrading of already owned licenses/rights.
iii) Obtain production (through fusion or purchasing)
iv) Secure financial freedom of action (through sales, loans and/or emissions)
v) Build up internal expertise with the Board and the administration.
vi) Establish new cooperation partners and define the optimal form of cooperation with
these.

The above will form the framework for how we work to develop the company and the different projects at hand. The scheduled goals for obtaining more and new agreements are, however, at present somewhat delayed in comparison to how we viewed the situation at the beginning of the year. We are still optimistic regarding the possibilities of meeting our expectations which has been created so far.

A working- and development program has been defined regarding the Assets owned by the company, which we are now following in order to develop and upgrade our portfolio. Our investments in this work is regarded as very profitable for the shareholders in the long run, as the underlying values will thereby be increased. A considerable part of today’s portfolio is connected to the oilsand licenses through the company Norwegian Oil Sand Corp. At the beginning of this year we therefore commissioned a geological study carried out by the company Degolyer & MacNaughton in order to obtain an independent third party evaluation of our resources in this field. We have now received a preliminary report which concludes with the following information. They point out occurrence of oil in Upper McMurray Channel (UM) and Lower McMurray Channel (LM) and state the following numbers:

Above 10m – up to ca 11m thickness:
UM 44.86 mill. barrels of oil in place in an area of 840 acres.
LM 47.53 mill. barrels of oil in place in an area of 757 acres.
Total 92,493 million barrels.

Occurrences in layers of 5m up to 10m:
UM 125.9 mill. barrels of oil in place in an area of 2974 acres.
LM 115.1 mill. barrels of oil in place in an area of 2347 acres.
Total 241 mill. barrels of Oil in place.

Occurrences in layers of 0 – 10-11m (indicates total oil in place)
UM 151.6 mill. barrels of oil in place in an area of 5112 acres.
LM 144.4 mill. barrels of oil in place in an area of 4377 acres.
Total 296 mill. barrels of Oil in place.

In respect of economical and technical considerations, it is the thickest layers which are of most importance. But taken into account in a longer perspective, the technology might make the thinner layers profitable too.

Geographically these resources of oil and bitumen are concentrated in the Northwest areas of the field. The further work will be to elucidate how the field best can be developed for production and which technology to use. As informed in Letter to Shareholders of January 8, 2008, it would be feasible for Nordic Petroleum ASA to look for a partner for the further development of the field. We are working with this at present. Furthermore, a thorough study to determine method and technology together with the potential of the size of extraction and profitability of the projects will have to be carried out.

A next step was originally planned to be the seismic mapping, but the present consideration is to carry out the core drilling directly, with the possibility to convert the exploration wells into production- or injection wells. In this manner it will be possible to establish the exact resources with a larger grade of certainty within a relatively short time frame. The figures are now within a reasonable framework in comparison with the earlier announced figures and study carried out by Sogning taken the basis of data into consideration.

The extent and progression of further development work of the various projects will among other factors be conditioned by financing. This is at present being evaluated by the company and its consultant advisors.

Svalbard (Spitsbergen) and Greenland
Within a short period of time a re-evaluation of the value implanted in these areas will commence internally within the company in order to establish what can be obtained in these areas, taken into consideration the imposed working schedule which contains technical evaluation, political considerations and working program. The gathering of various data has already started.

Miscellaneous
On Wednesday June 4th, at 18.00 hours the General Assembly has been scheduled. The Yearly Accounts for 2007 will be sent out together with the Summons to the General Assembly.

Since the company has chosen not to focus on the notation of the company at Oslo Axess, we have chosen not to notify inside purchases and –sales from the members of the board and heads of administration. We are following the rules as stated by The Norwegian Securities Dealers Association’s OTC listing.

Last week (on April 15th and 16th, 2008) a lawsuit in Norwegian Superior Court was scheduled in the so called Hopen Case. Ruling of the case is expected sometime during June of this year. The company will then decide upon further actions, if any.

Norway Fredrikstad, April 22th, 2008

For Nordic Petroleum ASA

Arild Tolfsen (sign.)
Managing Director

For further information, call Managing Director Arild Tolfsen,
Tel.No (+47) 69 51 72 58 or +47 930 99 859