Rocksource ASA Group has reached its year-end 2007 target almost 3 months ahead of time. Net production to Rocksource has now exceeded 1,000 barrels of oil equivalent per day (boepd), and is expected to continue to increase. Average net production grew from an average of 500 boepd in second quarter, to an average of 635 boepd in third quarter.

Rocksource has drilled 5 wells in the newly discovered Drews Landing field, and all of the wells have encountered hydrocarbons. The company has now initiated a second phase drilling campaign consisting of 4 additional wells.

Rocksource’s US subsidiaries, Rocksource Energy Corporation and Sandhawk Energy LLC, have achieved the year-end production target early by installing temporary processing facilities in the field instead of waiting for completion of the new facilities which are expected to be operational in November. Jacob Sannes, CEO of the US subsidiaries comments that “This arrangement creates a win-win situation where critical parts of the new facilities may be tested thoroughly prior to final hook-up, while producing additional gas for sales from wells which otherwise would have to produce at reduced capacity”.

The temporary facility has a net capacity of around 1,200 boepd and will be operated between 1,000 and 1,200 boepd until permanent facilities are in place. Initially, the permanent facilities will have a gross capacity of around 3,000 boepd and production will be phased in as current wells are opened fully and new wells are drilled.

Drilling of the first well in the second phase drilling campaign consisting of 4 wells has started and the well labeled Morian 7 is expected to be completed early November.

The Rocksource production target of 2,000 boepd by year-end 2008 will be reviewed when the new facilities are in place and operational experience is gained.