The Management Board of Grupa LOTOS S.A. reports that LOTOS Exploration and Production Norge AS (wholly-owned by Petrobaltic S.A., which in turn is controlled by Grupa LOTOS S.A. in 69%) today entered into an agreement concerning purchase of a 20% interest in exploration licence PL455, covering an area of 1365 square km located in the southern part of the Norwegian sector of the North Sea.
LOTOS Exploration and Production Norge AS signed the agreement with Noreco, a Norwegian exploration and production company. LOTOS Exploration and Production Norge AS will acquire a 20% interest in the licence in exchange for covering 40% of the expected expenditure required to perform seismic surveys under the PL455 licence, amounting to appr. 38 mln NOK (i.e. PLN 15.9m., translated at the NOK/PLN mid exchange rate published by the National Bank of Poland for 26th August 2008). The transaction will take effect once relevant approvals are obtained from the Norwegian authorities.
Licence PL455 was granted to Noreco as part of the pre-qualification round APA2007. Noreco is also the licence operator and - after the transaction with LOTOS Exploration and Production Norge AS - holds a 50% interest in the licence. Seismic surveys are intended to be performed in 2008-2009 and drilling in 2010 to prove potential reserves. Under Norwegian tax system 78% of exploration costs may be refunded if success is not achieved.
Basis for publication of this report: Art. 56.1.1 of the Act on Public Offering - inside information.