Possible merger of the oil department of Independent Oilfield Rentals (IOR) Ltd.

Possible merger of the oil department of Independent Oilfield Rentals
(IOR) Ltd.

The Board of Directors of Independent Oilfield Rentals has formally
approved to start merger negotiations of their oil department with
Petrolia ASA.

The Independent oil department has both production and exploration
license interests in the Middle East and North Africa (MENA).

The estimated merger value of Independent`s oil department is between
USD 10 -50 mill, depending on the future political and operational
situation in the MENA area. Value of a share of an exploration well
presently being drilled in North Africa, is not included.

The effective date is planned for 1. January 2012 after the Registered
Head Office of Petrolia is moved to Cyprus.

The Final Merger Agreement is subject to approval by the Board of
Directors and shareholders general meetings in both companies as well as
satisfactory discussions with bondholders. The Consideration is agreed
to be Petrolia shares. It is expected that the agreement will be
completed in first half of 2012.

Petrolia`s chairman, Berge Gerdt Larsen is indirectly owner of about 10
percent of Independent Oilfield Rentals (IOR) Ltd.

Contact persons:

Managing Director, Kjetil Forland (kjetil.forland@petrolia.no)

Finance Manager, Sølve Nilsen (solve.nilsen@petrolia.no)