Purchase of Interests in Norwegian Production Licences
Report no. 96/20052008-05-20

The Management Board of Grupa LOTOS S.A. reports that today, i.e. May 20th, LOTOS Exploration and Production Norge AS (a member of the LOTOS Group) signed an agreement with Norwegian company Revus Energy concerning purchase of 10% of interests in the North Sea production licences No. 316, 316B, 316CS and 316DS. The purchased licences cover the YME field and an additional exploration area. The YME field is located 110 km off the coast in the southern part of the Norwegian sector of the North Sea. The recoverable crude oil reserves of the YME field which correspond to the 10% interest held by LOTOS E&P Norge AS, are estimated by the operator (Talisman) at 6.8 million bbl (about 900 thousand tonnes). Production from the field is expected to start in the second half of 2009. The value of the transaction is USD 52.2 million (i.e. PLN 114,770,250, translated at the USD/PLN mid exchange rate published by the National Bank of Poland for May 20th 2008). The acquisition of rights to tax exemptions held by the seller in connection with the investments made, accounts for about 20% of the price. The agreement will take effect after its approval by the General Shareholders Meeting of Petrobaltic S.A. (controlled by Grupa LOTOS S.A. in 69%) and the Norwegian Ministry of Energy and Crude Oil. The Ministry can only issue its approval after the process of formal prequalification of E&P Norge AS to conduct business on the Norwegian Continental Shelf is completed. The transaction is an important milestone in the development of Grupa LOTOS S.A.’s activity on the Norwegian Continental Shelf. Basis for publication of this report: Art. 56.1.1 of the Act on Public Offering – confidential information.