Skyway agreements signed. Farm-in on Carmangay with Masters Energy Inc.

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Nordic Petroleum ASA has agreed on a joint venture (JV) agreement with Skyway Resources Inc. and signed a farm-in agreement with Masters Energy Inc., who owns the rights to the area. The field is located in Carmangay area, Alberta, a gas and oil rich area about 80 km south west of Calgary. The area can be drilled, developed and operated throughout the year. The target will be formations between 1600 and 500m depth. The area has existing production and well developed infrastructure, including pipelines to the market.

The farm-in agreement by the JV Nordic and Skyway include drilling one well with the option of a total of up to 6 wells in the production licenses held by Masters in accordance to our estimates. The Joint venture will earn a 65% in the farm-in agreement. Nordic Petroleum’s part will vary between 30-45 % earned payout interest in the joint venture depending upon final investment and costs for the drilling and development program. The potential is considered to be 1-3 MMscf/day per well with a reserve basis up to 4 Bscf per well by experience in the surrounding area. Further there is also an option for re-entry of two oil wells.

Norwegian Petroleum Inc. which is a fully owned subsidiary within the group Nordic Petroleum, will be the operator for executing the construction, drilling and sales to the market.

Activities has started to perform the construction and drilling of the first target well, and Nordic Petroleum estimated spudding of the first well will be before 31st of January 2009. The drilling and testing operation is estimated to approximately 2 weeks and depending on tie in approval to gas pipeline approximately 3km away, sales may occur soon after.

Oil and gas has been proven at the depth around 650 m and between 1400-1600 m. Neighboring wells are consistently producing gas from 500 Mscf/day to 3,5 MMscf/day. Wells in the area has tested up to 7 MMscf/day.

Masters Energy Inc.
Masters Energy is an Alberta-based corporation engaged in the acquisition, exploration and development of petroleum and natural gas reserves of Western Canada. Masters’ common shares are listed on the Toronto Stock Exchange under the trading symbol “MSY”. Geoffrey C. Merritt is President and CEO of the company.

Link: http://www.mastersenergy.com/.

Skyway Resources Inc.
Skyway is a private and limited partnership company from Calgary that invests in oil and gas production. Colin Q. Winter is President of the company.

Calgary, Canada/Fredrikstad, Norway January 7th 2009

Norwegian Petroleum Inc./Nordic Petroleum ASA

Please call Mr. Arild Tolfsen for more info,
Mobile : +47 930 99 859,

E-mail : arild.tolfsen@nop.as