The General Assembly of Araca Energy ASA approved on the EGM 29th of October 2015, an increase of share capital by issuing 11,860,000 new shares in the Company at a price of NOK 1.40 per share, completing the agreement with MAC SA, a subsidiary of a Kuwaiti investment bank. The nominal value is NOK 0,25 per share. After the transaction, MAC SA holds approximately 0.8 percent of the Company's share capital.

- Araca Energy ASA is very pleased to have the MAC SA on board as a shareholder and strategic partner. Araca has an expansive strategy in geographical areas which MAC SA has profound knowledge of and we are looking forward to develop the collaboration further.

The massive fall in the oil price has lead to major problems for many energy related companies. In parallel, it has also created a lot of interesting opportunities for growth focused operators like Araca. We see a number of opportunities in Russia and related areas that we are looking to explore in the near future and possibly in the Middle East with our new partner, says CEO Henrik Wold in Araca Energy ASA.

About the Investor:

Shareholders of MAC include a private investment group based in Kuwait established first as a trading company, more than 100 years ago. The Conglomerate has developed into one of the leading global players , with diverse interests and activities worldwide. The conglomerate develops businesses ranging from manufacturing, construction, hotels and financial investments. The conglomerate has an active presence in the Middle East, Asia, Africa and Europe.

About Araca Energy ASA:

Araca Energy ASA is an oil and gas company with head offices in Oslo, Norway. Araca is through the fully owned subsidiary OOO Geotechnologia specialized in oil and gas activities in Russia and bordering countries. Araca holds exploration and production licenses in the Timian-Pechora region in Northwest Russia.

Araca subsidiaries holds and operate three licenses for exploration and production. The first gas field in Ukhta commenced production in 2010.

Oslo, 29 October 2015
On behalf of Araca Energy ASA's board of directors
Atle Torbjørn Karlsvik
Chairman of the Board of Directors

For further information, please contact:

Henrik Wold, Interim CEO
E-mail: hw@araca.no
Phone: +47 988 88 444