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Ginger Oil becomes operator in Kansas

• Ginger Oil is invited as operator in a new joint venture project in Kansas
• Locations staked for two wells in the Stephens area in Arkansas
• Drilling and production testing according to plan in two Texas Arch wells

Ginger Oil Company has entered into an agreement with Royalty Exploration (REX), a privately held company, regarding exploration in an under explored area of Kansas. Ginger Oil is the operator in the area that consists of 5,683 acres with an option for an additional 9,035 acres. This development is in line with Ginger Oil’s strategy to diversify its prospect portfolio and act as operator to control the project development. Ginger Oil will have 20% of revenues in the first area and 26% in the option area. An estimate of resource potential for the first two prospects we are drilling is 1,250,000 bbl of oil net to Ginger Oil .The first well of these two is expected to spud in mid December 2007.

REX has developed these prospects through the use of a combination of unique surface methods. The basis for this type of exploration is that all oil and gas fields leak to the surface. Their methods are to measure the types of hydrocarbons and compounds that are found to be present in the soils that would indicate underlying potential oil and gas fields. The samples obtained are then analyzed with gas chromatography and mass spectroscopy, targeting over 250 compounds with very high sensitivity.

In our Stephens area in Arkansas area, two exploration wells have been staked and will commence drilling as soon as drilling rigs can be obtained.

In the Texas Arch prospect, well #1 is being re-drilled as planned and is at 3,340 depth as of November 27, 2007, with TD expected at 9,200’. Production testing is under way for well #2 where gas was encountered in the Ellenburger formation at a depth of 3,900 feet. If the flow is commercial the well will be hooked up to a nearby pipeline.

Read our press release for more information.

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Operative update from Ginger Oil AB

Ginger Oil’s development continues at one of our prime areas of focus. Two new wells have now been completed and production has commenced on both the Hagamann-Smith #1 (Mohawk area) and the Shinn #1 well (Cleveland area).

The Company previously reported positive “swab-test” results from its Hagamann-Smith #1 well in southern Arkansas. The well has now been placed on pump and is producing at a rate of 47 BOPD. This well is part of the Mohawk Field in Columbia County. The field was placed on production by Amoco in 1973 and has produced a cumulative of 2.6 million barrels of oil from eight wells. Our well performance will be monitored for approximately six months before a decision can be made to drill a second well. Ginger has a 31% net revenue interest in this and a second well.

Ginger reported in a September 19th press release the test results of its Shinn #1, located in southern Arkansas. It tested at a rate of 167 BOPD. It was placed on production on September 26 and has been producing an average of 150 BOPD. The top allowable production for this well has been set by the state of Arkansas at 150 BOPD. Ginger has a 15% net revenue interest in this well.

The combined net production rate to Ginger Oil for these two wells is approximately 37 BOPD. This new production will increase our daily rate of production to about 90 BOPD. At current product prices this production translates to a monthly gross income of approximately $180,000.

Ginger has signed the AFE (authority for expenditure) for the Bonner #2 well and it should be drilled this year. This is a development well in our recently discovered Big Branch East Field in southern Arkansas. This was one of the fields discovered as a result of our initial 3-D survey in Arkansas. The Bonner #1 discovery well has been flowing at a rate of 70 BOPD and has produced over 48,000 barrels of oil since being placed on production in January 2006. It is now being placed on pump. Ginger has a 10% revenue interest in this field.

Our group has completed its second 3-D seismic acquisition in our Stephens area. It took approximately one year to complete the process. Based on the results of the seismic, it appears we have at least five new prospects. Ginger and partners are making preparations to drill the first two of these, possibly late this year. Ginger has a 25% net revenue in these wells.

Ginger has completed the seismic acquisition phase of a third area, called Falcon. Processing and mapping of the data are continuing according to plan and will take an additional six months before results are known. It is similar to our first two areas and it has six leads. Ginger has a19% net revenue in this shoot.

Ginger is making preparations for a fourth shoot in the southern Arkansas area. The leasing and permitting effort for one of these shoots can take up to one year to complete. This area will total more than sixty-five square miles and is the largest acquisition area to date. We anticipate it to be underway in mid 2008. Ginger has a 10 % net revenue interest.

Ginger has a fifth shoot area defined and the group has given the OK for us to start assembling leases in the “core areas” within the shoot area. Ginger will have 16% net revenue in these leases.

Our 3-D seismic activity in southern Arkansas stems from Ginger’s strategy of applying advanced technology in mature producing areas. In 2004, we were the first company to acquire 3-D seismic in southern Arkansas for the purpose of oil exploration. As a result, we have had the advantage of dominating exploration in this 90-mile long trend. We have made five new field discoveries from that first shoot, Lewisville, in 2004 and will be actively exploiting in it for several years to come. We anticipate similar success to come from shoot areas two (Stephens), three (Falcon), four (Falcon II and five (Falcon III).

Ginger is drilling a test well in its Texas Arch Area of Central Texas. Casing has been set at 3,785 feet and total depth is projected to be 7,600 feet. The prospect is deemed to have large potential oil reserves, but carries attendant high risk. We are not revealing the well name at this time for competitive reasons.

Read our press release for more information.

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Operative update from Ginger Oil AB

The Shinn #1 well, located in our Cleveland Branch Field in southern Arkansas has tested with an initial flow rate of 167 barrels of oil per day. The test was conducted without the help of any pump and with a flow limitation through a 16/64 choke. The well will initially be produced at a rate of 150 bbls per day as allowed by the state of Arkansas. After three months of production, Ginger is allowed to apply for increased production rates based on fulfillment of certain technical parameters of the well. Ginger Oil has a 15 % net revenue interest and this well will significantly add to Ginger Oil’s cash flow.

The Carter #1 well in the Texas Arch Prospect located in central Texas is drilling at 2 100’ depth.

Read our press release for more information.

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Operative update from Ginger Oil AB

Ginger Oil has swab tested (a test to determine what kind and rate of fluid that can be expected to be pumped at a later date) their Hagamann-Smith #1 well in the Mohawk Prospect in Arkansas. The swabbing resulted in pure oil with no water. A pump is being located and should be installed within 4 to 5 weeks. Ginger has a 31% net revenue interest.

The Shinn #1, located in our Cleveland Branch Field in southern Arkansas has been logged and a whole core was taken. Analyses of these data indicate there is an approximate 90 net feet vertical oil column in this well. A completion rig should be on location within several weeks. Ginger and partners have decided to complete this well in a vertical hole as opposed to a horizontal hole for two reasons: 1) the well has an oil/water contact that is 35' higher than the producing, offset well. This fact indicates that a small fault may be present and may complicate a horizontal completion; and 2) there is an excellent vertical oil column indicated in this well and a vertical completion should produce oil at an excellent flow rate. Also, larger size casing, 7" in diameter, has been set. The larger casing will allow us to sidetrack and complete this well as a horizontal well at a later date, if warranted. Ginger has a 16% net revenue interest.

It has been decided to initially drill the Carter #1 well in our Texas Arch Prospect located in central Texas. It was spudded on September 3, 2007. It is expected to take four weeks to drill to a projected total depth of 8,800 feet. The Stevens #1 will be drilled immediately after completion of the Carter #1. The Stevens was temporarily abandoned due to difficulties with the drilling operations. Ginger has a 5.6% net revenue interest.

Three seismic lines in the Snow Hill and Louann Prospects, located in southern Arkansas, have been shot and are being analyzed. Analysis of the data will take approximately one month after which, hopefully, drilling recommendations will be forthcoming.

Read our press release for more information.

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Listing on NGM Equity

Ginger Oil AB (publ) has received notification from NGM Equity that its application for listing on the NGM Equity exchange has been approved. The first day of trading on this exchange is expected to be May 28, 2007. With this listing the Company expects to benefit from the exposure to a much larger pool of both professional and private investors.

On Friday May 25 the Company officially approved the prospectus that was prepared in connection with a rights issue and also approved the listing on the NGM Equity exchange.

Also on May 25th the prospectus was made available on Ginger Oil AB’s website ( and Erik Penser Fondkommission AB’s website ( It is also available in printed form at Erik Penser Fondkommission, Biblioteksgatan 9, Stockholm, tel:+ 46 08-463 80 00.

Signup for the rights issue starts May 29 and ends June 13, 2007. Trades with “rights to sign” will be possible from May 28 through June 8, 2007 and trade with ”signed up” shares (BTA) is possible from May 29, 2007 through the date on which the emission has been registered at Bolagsverket, which is expected in July 2007.The new emission will bring in 24.9 million SEK to the company before emission costs. The emission has been fully subscribed through commitments to sign and guarantees.

”The listing and the emission gives us the possibility to continue the very good development we have seen during 2006. We will increase production and intensify the prospecting. During 2007 we have plans to drill 15 wells,” says Allan Åkerstedt Chairman Ginger Oil.

Erik Penser Fondkommission is Ginger Oil’s financial advisor in the rights issue.

Read our press release for more information.

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The board of directors of Ginger Oil AB has authorized a new issue of 1.6 million shares to raise approximately 24.9 MSEK (3.5 MUSD) and the application for listing on the NGM stock exchange.

On May 13, 2007 the Board of Directors of Ginger Oil AB (publ) decided to complete a new issue of stock to raise approximately 24.9 MSEK (million Swedish Kronors) with preferential right to existing shareholders. The BOD authorized the issuance of a maximum of 1,557,067 shares at a price of 16.00 SEK per share. Upon a successful emission Ginger Oil AB’s share capital will increase to a maximum 1,712,774.10 SEK. Additionally on this date, the BOD approved the application for listing on the NGM Equity (stock exchange). The application process is currently underway.

Read our press release for more information.

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Ginger Oil Has Been Awarded Three Blocks in the North Sea

The UK Department of Trade and Industry has announced the results of the 24th Offshore UK Licensing Round.

The operator, Sterling Resources (UK) Ltd., has released the following:

“Also in the Southern North Sea, Blocks 48/18d, 48/23b and 48/28b (split) have been offered to Sterling and its partners, GB Petroleum Plc and Ginger Oil Company, who are both new entrants to the North Sea. Sterling has a 40-percent working interest and is operator. The blocks hold several Rotliegendes targets, one next to the existing discovery and two up dip from existing wells which encountered gas.”

The prospects in Blocks 48/18d and 48/23b are conventional Rotliegendes targets. Block 48/28b is a split block with a Zechstein carbonate play. Ginger has a 30 percent working interest in blocks 48/18d and 48/23b. Ginger has a 15 percent working interest in block 48/28b.

Ginger looks forward to working together with Sterling Resources as they have shown high competence and performance and both have experienced personnel in this oil and gas sector.

Read our press release for more information.

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New Chairman of the Board to be nominated in Ginger Oil AB (Publ)

The founders of Ginger Oil AB (Publ) have today agreed to nominate Mr. Allan Åkerstedt for election as new Board member and Chairman of the Board in Ginger Oil AB (Publ)

Mr. Allan Åkerstedt has today accepted to be nominated as new Chairman of the Board of Ginger Oil AB. The election will take place at the Annual General Assembly, expected to take place in Stockholm during the spring of 2007.

Mr Åkerstedt has formerly held positions as Group Finance Director of the Norwegian oil company, Statoil and as Managing Director of an asset management company, Storebrand Kapitalforvaltning and a member of the Executive Management of Norwegian life insurance group, Storebrand. He currently holds positions as Chairman of the Board in other Norwegian companies.

Read our press release for more information.

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