Following a successful exploration campaign in 2014, dominated by the Pil discovery in the Norwegian Sea, and the recent completion of a NOK 210 million rights issue, Rocksource ASA ("Rocksource" or "Company") is now fully funded to embark on a high potential drilling campaign for 2015.

The fourth quarter of 2014 was dominated by the drilling of the Ivory exploration well in PL 528 in the Norwegian Sea. In December 2014 the Company announced a technical discovery on Ivory. Lower than expected volumes and poor reservoir properties led Rocksource to expense the costs on Ivory in the quarter.

Exploration expenses totaled NOK 136.1 million in the quarter, compared with NOK 26.5 million for the corresponding quarter of 2013. NOK 83.6 million related to drilling of the Ivory well were expensed in the quarter.

The net loss for the quarter totaled NOK 4.9 million, compared with a net loss of NOK 1.4 million in the fourth quarter of 2013. The net loss for the full year was NOK 41.5 million versus NOK 39.3 million in 2013.

The Pil discovery represents a transformational event for Rocksource. Through Pil the Company is part of one of the most exciting finds on the NCS in recent years. The upcoming follow up campaign will explore a large structure adjacent to existing discoveries, exposing the Company to gross unrisked resources of between 200 and 500 mmboe (Rocksource estimate). Following the recent successful NOK 210 million rights issue and the new NOK 700 million Exploration Credit Facility, the Company will be fully funded to explore this significant upside potential. However, the Company fully recognises the present market conditions with low oil price and cost focus in the industry, and will be very prudent with regards to capital spending going forward. The market turmoil will however also lead to interesting opportunities that will be followed closely.

Apart from the PL 586 follow up programme, the Company currently has no wells scheduled for 2015. However, Rocksource will continue to enhance its portfolio with the goal to develop high quality exploration targets for drilling in 2016 and beyond.

The interim report and Company presentation for 4Q 2014 is attached to this announcement.

Bergen, 27.2.2015
Rocksource ASA

Hans Petter Klohs
CFO

+47 907 50 526

distributed by