Explora Petroleum intends to build a portfolio through the established Norwegian licencing systems and through potential farm-ins offered by current licence holders.

In Norway, production licences are awarded in two types of licence rounds.

• The main licencing rounds historically occur every second year. Applications for the 22nd License Round are anticipated to be due in 2012.
• The annual awards in Predefined Areas, so-called “APA” awards. Applications for APA 2012 round will be due in September 2012.
• Interest in licences can be obtained from current licence holders through the farm-out / farm-in process.
• Results of the last two licence rounds:
• In April 2011, the Norwegian Petroleum Directorate announced that 29 companies were offered participation in 24 new production licences in the 21st licensing round.
• In January 2011, there were 50 new productions licences offered to 39 companies in APA 2010.

(Source NPD website, http://www.npd.no)

Licences are awarded with either a drill or drop commitment or an agreed work program which is usually a combination of seismic data acquisition and drilling of an exploration well. As the deadline for drilling commitments approaches, and the licence terms draw to a close there can be an increase in farm-outs and farm-ins. Between 2013 and 2015 approximately 60,000km2 of licenced acreage will be expiring.