29.02.08 - Pre. 4Q 2007

Independent Oil & Resources ASA - Preliminary result 4 th Quarter 2007
 
General

The financial statements for 2007 and 2006 have been prepared in accordance with Norwegian Generally Accepted Accounting principles consistent with the principles applied in the annual financial statements for 2007.
In January, 2007, Independent Oil & Resources ASA sold its subsidiary, Independent Oil Tools AS (IOT) including its wholly owned subsidiaries Premium Casing Services Pty Ltd (PCS) and Independent Tool Pool AS. The total consideration for the shares in IOT and intercompany loans were NOK 380 million. Net gain from the sale was NOK 103 million in the parent company accounts. On a consolidated basis, taking into account the net equity in the subsidiary of NOK 15 million, the gain amounted to NOK 88 million.

On February 2, 2007, the Company also sold 25 million shares in Petrojack ASA, equal to 30% of the total outstanding shares of Petrojack. The total sales price was NOK 550 million. Cost price of the shares was NOK 521 million, resulting in a net gain in the parent company accounts of NOK 29 million. In the consolidated accounts for 2006, Petrojack was accounted for using the equity method. The book value of the shares sold included an equity interest in the 2006 net income of Petrojack of NOK 93 million, resulting in a net loss on a consolidated basis of NOK 64 million.

Long term investments in shares are accounted for using the cost method. Short term investments in shares that are traded on the Oslo Stock Exchange are accounted for using market value at the balance sheet date. Other short term investments in shares are accounted for using the cost method.

The 2007 accounts are unaudited.
 
Financial Information
   
Fourth quarter operating loss was NOK 3,5 million compared to MNOK - 1,1 in the fourth quarter last year. Operating loss for the full year was MNOK 6,3 in 2007, compared to MNOK - 3,6 in 2006.
   
Net income after tax for the fourth quarter 2007 was MNOK - 43,5, compared to MNOK 3,1 in the same period in 2006. For the full year 2007 the net income after tax was MNOK - 44,0 compared to MNOK 482,1 in 2006.
   
Net income includes negative result from investment in affiliated companies and loss on sale of shares of MNOK 52,9 for the fourth quarter 2007 and MNOK 147,8 for the full year.
   
For further information - please contact Mr. Bernt Skeie - phone +47 950 46 031.
   
Please find enclosed the Preliminary result 4 th Quarter for Independent Oil & Resources ASA.
 
Bergen/ Stavanger, 29 February 2008
 
The Board of Directors