Minister of Industry on Possible Oil in Dreki Area: Icelanders are Utilising Their Right With the Nation's Future Interests as a Guide

    REYKJAVIK, Iceland, Sept. 9 /CNW/ -- Strong indications for some time of
oil in the Dreki area, progress by leaps and bounds in oil exploration
technology, a high oil price and possible economic gain are several of the
main reasons that Iceland is now preparing a tender offer at the start of next
year for exclusive licences for oil exploration in the Dreki area (NE of
Iceland, south of the island of Jan Mayen).

    This emerged during Minister of Industry Ossur Skarphedinsson's opening
speech for the Iceland Exploration Conference 2008, on searching for
hydrocarbons in Iceland, which was held recently in Reykjavik. Last but not
least, Icelanders will be utilising their right with the nation's future
interests as a guide, said the minister.

    Michael Larsen from DONG Energy in Denmark said in his speech that
various things indicated diverse potential in the geology of the Jan Mayen
Ridge and the areas to the east and west of it with respect to the formation
and storage of hydrocarbons. Jorgen A. Bojesen, from Geological Survey of
Denmark and Greenland, endorsed this view in his speech, where he reported on
research on the geology of Greenland's organic-rich source rock, and what
conclusions can be drawn from them for the Jan Mayen Ridge.

    Harald Brekke, from the Norwegian Ministry of Petroleum and Energy, said
that there was certainly a probability of finding oil in the Dreki area; it
was only a question of where and in what quantity. Terje Hagevang from Sagex
Petroleum said that he believed strongly in the area for oil exploration, and
that the western part of the area should probably be explored first.

    Over 100 participants, about half of them coming from abroad, attended
the conference at the Hilton Nordica Hotel in Reykjavik recently. The tender
offer for exclusive oil exploration licences in the Dreki area is planned in
January of next year.

    Iceland; National Energy Authority, Iceland

For further information:

For further information: Kristinn Einarsson, Project Manager of National
Energy Authority, Mobile: +354 863 9974; or Ossur Skarphedinsson, Minister of
Industry, +354 545 8500

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