On 16 January 2009, Arawak Energy Limited (“Arawak”) announced that it had agreed the terms of a recommended and increased pre-conditional cash offer to be made by Rosco S.A. (“Rosco”) for the entire issued and to be issued common share capital of Arawak not already held by Rosco and its affiliates at a price of CAD 1.00 per share (the “Offer”).

The Offer was pre-conditional on Rosco obtaining, in terms reasonably satisfactory to Rosco, the consent of the Federal Anti-Monopoly Service of the Russian Federation with respect to the Offer, which was received by Rosco on 19 January 2009.

Arawak announces that a directors’ circular (the “Directors’ Circular”) containing details of the Offer is being posted to Arawak Shareholders today. An offer document (the “Offer Document”) to be issued by Rosco containing a letter from the Chairman of Arawak, information on Rosco and the full terms and conditions of the Offer, will accompany the Directors’ Circular.