CHARD UPDATE – NORWEGIAN OIL SANDS

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With reference to our previous updates we would like to report that it has taken longer than expected to find a suitable partner to participate in the financing of the core drilling program at Chard. The Board’s plan is to provide funding for core drilling through a partner, primarily a farm-out agreement, and not through an issue of shares. Note that currently there are very promising proceedings ongoing with interesting parties. A couple of these proceedings are in a Due Diligence phase by the investors, which includes everything from legal, financial, geological and technical conditions. The proceedings are quite extensive and time consuming. Experience shows that investors also make a technical assessment to see how one may later reach production.

One of those investors we have come far with is now planning to meet us in Calgary at the end of October as a part of their studies. One of the checkpoints then will be to inspect the license. We can mention that all parties we are talking with are international. Surprisingly, so far few Norwegian industrial partners or investors have shown interest to participate in the development which according to our assessment has a significant potential over the next 3 to 10 years. As of today, production from oil sands projects produce as much oil as is currently produced from the Norwegian sector of the North Sea, ie around 1.6 million barrels a day. In 2020 the estimated production from oil sands projects in Alberta will be 4-5 million barrels of oil per day.

Fredrikstad, Norway 28.9.2011

Nordic Petroleum AS
Contact Arild Tolfsen with enquiries,
Mobile : +47 93 09 98 59,
E-mail : arild.tolfsen@nop.as