Annual Statement of Reserves Classification of Reserves and Contingent Resources In this document volumes are classified according to the NPD classification system (www.npd.no/regelverk/r2002/ressursklassifisering_e.htm). Most emphasis is put on reserves and only quantities categorised as reserves are included in the tables in Annex 1. In a separate section in the text contingent resources are described. The report is in accordance with the Oslo Stock Exchange guidelines given in Circular 2/2007 Guidelines for the disclosure of hydrocarbon reserves, contingent resources and results from exploration. Recoverable volumes are expressed as gross and/or net technical reserves or resources. Gross reserves or resources are defined as the total estimated petroleum to be produced from the fields from 1 January 2008. Net reserves or resources are defined as that portion of the gross reserves or resources attributable to the interests owned by Revus. In accordance with the Circular, Revus has used a constant oil price of 60 USD/bbl. This is below market price at the end of 2007, but consistent with previous years report. Classes 1, 2 and 3 are defined as reserves. Classes 4 and 5 constitute contingent resources. Reserves Reference is made to Table 1 and Table 2 in Annex I for tabulation of reserves as per year end 2007 and reserves development during 2007. Developed As per December 31, 2007, Revus has production from three developed fields: Veslefrikk - Operated by StatoilHydro, Revus interest is 4.5 % Brage - Operated by StatoilHydro, Revus interest is 2.57 % Murchison - Operated by CNR, Revus interest is 10.68 % Our interpretation of these three fields is to a large extent in accordance with the views of the operators.
All three fields are in their tail-end phase which is characterized by: slowly declining production with high water cut active reservoir management through infill drilling and other well activities optimising capacity of the facilities focus on cost effective operation The range from 1P (P90) to 2P (P50) in these mature fields varies (1P is between 16 and 65 % of 2P). This results from uncertainty in reserves from new wells, early economic cut-off in low cases, and different outcomes of future investment decisions in 1P and 2P cases. The cost used by Revus is consistent and in agreement with plans and budget assumptions provided by the operators. Revus reports net 2P reserves of 4.95 mmboe from these three fields. Veslefrikk contributes with close to 50 % of our developed 2P reserves (net 2.26 mmboe). The main uncertainty on Veslefrikk is linked to an investment decision to upgrade the facilities for late life production and potential scope of such an investment. In our 2P reserves a positive decision for a moderate scope is included. This gives gross remaining 2P reserves on Veslefrikk at 50.1 mmboe. In the Brage field Revus holds net 2P reserves of 0.86 mmboe. The Brage field is in the middle of a three year drilling campaign also including some appraisal and exploration drilling. Recent positive results from this drilling campaign have potential to increase the total reserves base for next year. As per 31.12.2007 gross 2P reserves of 33.4 mmboe are kept. Good infill wells have contributed to maintaining stable production above 20,000 boepd and the field is expected to have a long and flat tail period. Murchison straddles the UK/Norwegian median line and has been developed with a large integrated steel platform located on the UK side. The field is one of the most mature in the North Sea and CNR is the fourth operator since Conoco developed the field. Revus has estimated the net remaining reserves to be 1.84 mmboe (2P). In recent years Murchison has had a very active drilling program with several new wells. The drilling cost is lower than in Norway and successful infill wells have resulted in a prolonged life of field during a slowly declining production profile. Further infill drilling in the future is scheduled to maintain production. Undeveloped Revus has reported net 2P reserves of 11.38 mmboe for assets under development. These reserves come from the Yme development project. The Yme PDO was approved by the Norwegian authorities in May 2007. The Yme field (PL316) is located in the Egersund basin. The field is operated by Talisman and Revus holds an interest of 20 % in the license. The Yme field is comprised of two separate hydrocarbon accumulation clusters, Beta and Gamma, which in turn are split into smaller segments. The Yme field was originally developed by Statoil and produced 51 mmboe in the period from 1996 to 2001. Significant technical work has been performed on the Yme field during 2005 and 2006 after the license was re-awarded. The partners have agreed to redevelop the field utilising a jack-up production platform supported on a subsea storage tank. The platform will be located over the Gamma structure. Beta will be developed using subsea wells and tied back to Gamma. A PDO was submitted in January 2007 and first
oil is expected in 2009. Revus estimates the net 2P reserves in Yme to 11.38 mmboe (gross 56.9 mmboe). This estimate is in agreement with the base case in the PDO. Yme will be the first infra structure in the Egersund basin and a likely hub for potential other developments in the area. In August 2006 Bayerngas Norge AS signed an agreement for purchase of Revus 25 % interest in PL090C which includes Vega South. The transaction was approved by the authorities in 2007 and the reserves (2P: 14.7 mmboe) are therefore removed from Revus account. Contingent Resources Revus holds 60.9 mmboe in the category of contingent resources. The main contributors are the oil discovery Astero, the gas/oil discovery Oselvar, and the oil discovery Luno. In addition some smaller volumes of contingent resources connected to fields in production and under development (class 4 and 5 volumes) are included. The Astero discovery (PL090B) is operated by StatoilHydro and Revus holds a 25 % interest. An exploration well was drilled on Astero in April 2005 and discovered a significant oil accumulation and a smaller amount of gas in a reservoir of Late Jurassic age. The well tested successfully at rates over 3,000 bopd of a 35º API oil. The Astero discovery was further appraised in November 2006, and the well proved additional oil and small amounts of gas. Current estimate of the recoverable volumes in Astero is 49 mmboe gross. Astero is located in an area with well developed infrastructure for production and transport. Following the declaration of commerciality in Q3 2007 the next major milestone in the Astero development project is concept selection currently planned to take place in 2009. Area considerations are being made with respect to optimal timing versus available capacity in existing infrastructure. The most likely development scenario is seen to be a sub sea tie-back to a nearby installation (i.e. Fram). Revus net share of the 49 mmboe is 12.2 mmboe. PL274 is situated in the Southern part of the North Sea. The license includes the Oselvar discovery and several prospects. The license is operated by Dong and Revus holds an interest of 15 %. (15 % was sold to Noreco in 2007.) Oselvar was discovered by well 1/3-6 in 1991 and appraised in 1997 with well 1/3-7. The wells show a hydrocarbon column of about 490 m in a structure filled to spill. A second appraisal well on Oselvar was drilled during 4Q 2007 and through the turn of the year. The well (1/3-10S) drilled by Mærsk Guardian, encountered hydrocarbons and a promising production test was performed. The well was sidetracked down flank to find the water zone and define the oil water contact. A likely development scenario is a tie-back to one of the nearby platform installations (Ula, Gyda). A PDO is planned to be submitted during 2008, with the aim to start production in 2010. Recoverable resources are estimated to 53 mmboe gross, providing 8.0 mmboe net to Revus. In October 2007, well 16/1-8 drilled into the Luno reservoir in PL 338 and discovered light oil in high permeable sandstones of Jurassic age. The size of this discovery is estimated to be between 60 and 190 mmboe recoverable. 2P gross resources are estimated at 126 mmboe providing 37.8 mmboe net to Revus. To ensure rapid appraisal of Luno Revus has allocated one of its rig slots on Bredford Dolphin to the license partnership. The appraisal well is planned to spud in June 2008 and following results from this, further field evaluations and development planning will take place. The Luno discovery is located some 40 km north of
Sleipner and in vicinity of other infrastructure. Lundin operates PL 338 and Revus holds a 30 % interest. Management s Discussion and Analysis Evaluation of reserves and resources is performed internally in Revus by experienced professionals. In addition to our own technical evaluation, the work is based on input from our operators and partners. Standard geological and engineering techniques accepted by the petroleum industry are used in estimating recoverable hydrocarbons. These techniques rely on engineering and geoscientific interpretation and judgement; hence the resources included in this evaluation are estimates only and should not be construed to be exact quantities. It should be recognised that such estimates of hydrocarbon resources may increase or decrease in the future if there are changes to the technical interpretation, economic criteria or regulatory requirements. Senergy Ltd has acted as a third party expert in auditing Revus reserves and contingent resources. It is the 2P quantities that have been subject to this exercise, while 1P numbers are solely based on our internal evaluation. Senergy is a privately owned independent consulting company established in 1990, with offices in Aberdeen, London, Stavanger and Kuala Lumpur. The company specialises in petroleum reservoir engineering, geology and geophysics, and petroleum economics. Our developed reserves come from the three mature fields Veslefrikk, Brage, and Murchison. All three fields are in their tail-end phase characterized by a relatively low, but stable production. Veslefrikk is the largest contributor with close to 50 % of these reserves net to Revus. On Veslefrikk the operator and partners are working actively to prolong the life of the field. The Veslefrikk 2020 project has the goal to increase recovery and keep the field on production towards 2020. Similar activities are also being pursued on both Brage and Murchison. After the sale of Vega South in 2007 Yme constitutes all Revus undeveloped reserves. The Yme redevelopment project was sanctioned by the license partners in December 2006 and the Plan for Development and Operation (PDO) was approved by the Ministry of Oil and Energy in May 2007. The base case in the PDO anticipates production start in 2009 with rapid buildup to peak production of around 40,000 boepd gross. Contingent resources in Astero have been proven by two wells and no further appraisal drilling is planned. We expect Astero to mature towards concept selection in 2009 and potential production start in 2012. Astero is located in an area with well developed infrastructure providing several tie-back options. Oselvar is a gas/oil field, which was discovered in 1991 and appraised in 1995. The operator, Dong, and partners have drilled an appraisal well late 2007 and early 2008 using the rig Mærsk Guardian. This well provided positive flow test results and the plan is to submit a PDO in 2008 with potential production start in 2010. The most likely development is tie back to one of the nearby platforms (Ula, Gyda). Re-injection of gas in Oselvar for later recovery could be part of a development solution depending on available capacity in existing infrastructure.
High expectations are connected to the Luno discovery in PL 338, which was announced in October 2007. The promising accumulation is currently seen as one of the most material single discoveries in the Norwegian North Sea since 1994 with base case recoverable quantities of 126 mmboe. Given the size and likelihood of commerciality, these quantities are categorised as contingent resources, under class 5 according to the NPD system. Early appraisal of the discovery during summer 2008 has been enabled by Revus allocating a well slot on Bredford Dolphin to the license. Two deals affecting the Revus reserves and contingent resources were completed end February 2008: The acquisition of Statoil s 11.52 % share of Murchison will add 2.0 mmboe of reserves and 1.3 mmboe of contingent resources. The acquisition of Palace s interests in the UKCS including a 29 % share of the Broom field in production and a 29 % interest in the South West Heather discovery on which an appraisal well is currently being planned. The company estimates in total net reserves of 12.5 mmboe and net contingent resources of 4.3 mmboe in these assets, which will be included in the Annual Statement as per 31.12.2008 Based on this, the company s net reserves per April 2008 is 30.8 mmboe with net contingent resources estimated to 66.4 mmboe. Harald Vabø, CEO
ANNEX I Table 1 Reserves by field Reserves Developed assets As of 311207 1P / P90 Liquids Gas Liquids Gas 2P / P50 (mbbl) (bcm) mboe Interest % Net mboe (mbbl) (bcm) mboe Interest % Net mboe Veslefrikk 8,2-8,2 4,50 % 0,37 46,3 21,3 50,1 4,50 % 2,26 Brage 22,5 12,3 24,7 2,57 % 0,64 30,1 18,9 33,4 2,57 % 0,86 Murchison 5,7-5,7 10,68 % 0,61 17,2-17,2 10,68 % 1,84 Total 1,61 4,95 Under development (Transitional assets) As of 311207 1P / P90 Liquids Gas Liquids Gas 2P / P50 (mbbl) (bcm) mboe Interest % Net mboe (mbbl) (bcm) mboe Interest % Net mboe Yme 32,1-32,1 20,00 % 6,42 56,9-56,9 20,00 % 11,38 - - - 0,00 % - - - - 0,00 % - Total 6,42 11,38 Non-developed assets As of 311207 1P / P90 Liquids Gas Liquids Gas 2P / P50 (mbbl) (bcm) mboe Interest % Net mboe (mbbl) (bcm) mboe Interest % Net mboe - - - - - - - - - - - - Total - - Grand Total 8,03 16,33 Table 2 Aggregate reserves, production, developments and adjustments Reserves development Net attributable mboe. Calendar years, reporting as of year end. Developed assets Under development (Transitional assets) Non-developed assets 1P / P90 2P / P50 1P / P90 2P / P50 1P / P90 2P / P50 Balance (previous ASR) as of year end last full year 5,6 7,7 15,3 26,2 - - Production (0,7) (0,7) - - - - Acquisitions / disposals - - (7,4) (14,7) - - Extentions and discoveries - - - - - - New developments - - - - - - Revisions of previous estimates (3,3) (2,0) (1,4) (0,1) - - Balance /current ASR or interim update) as of 311207 1,6 5,0 6,4 11,4 - -