PetroProd Ltd. (OSL:PROD) PetroProd Ltd - Sales Of Vessels

PetroProd Ltd. (OSL:PROD) Further to announcement on 27 November 2008, closing of the sales agreements entered into by PetroProd 2 Ltd and PetroProd 3 Ltd (100% held subsidiaries of PetroProd Ltd) for the en bloc sales of the M/T Archimid and M/T Trust to a European buyer is expected to take place by mid-December 2008. The two vessels are agreed to be sold for a total cash payment of USD 22 million net. Petroprod has received an upfront deposit of 20% of the purchase price from the buyer.

The transaction does not relate to assets or business that have been subject to separate financial reporting. Both vessels have been laid up for a period of time, and the sales will reduce operating expenses and enable the company to retire a portion of its debt. For accounting purposes, the sales will negatively affect the consolidated income statement of Petroprod Ltd in 4th quarter 2008 by an estimation of USD 4 million (including transaction costs and expenses). The sales will have limited effect for previously reported revenues, net results and total assets in accordance with the audited annual accounts for 2007.

Contact person: Martin Nordaas (Phone: +65 9138 3188)

This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.

PetroProd Ltd.

http://www.petroprod.com

ISIN: KYG7053Q1064

Stock Identifier: OSE.PPROD