Noreco reaches agreement with partners in Denmark

Stavanger, 2 July 2015: Norwegian Energy Company ASA (“Noreco” or the “Company”) announces that it has reached an agreement with its joint venture partners in Denmark with respect to its forfeited licences and related abandonment liabilities.

Noreco has terminated its joint venture and its participation in the Nini and Cecile oilfields (the “Licences”). According to provisions in the respective joint operating agreements, Noreco has forfeited and transferred its participating interests in the Licences to the Partners on a pro-rata basis.

In addition, the settlement for claims on defaulted cash calls and capping of the abandonment liability includes a cash consideration of NOK 60 million, and an 18.2 per cent working interest in the Lulita field.

The restricted cash set aside for future abandonment liabilities will remain in escrow with and on Noreco’s balance sheet. According to the agreement, Noreco will not be held liable for abandonment costs beyond the restricted cash. Final closing of the agreement is subject to approval by the Danish Energy Agency.

The agreement in Denmark leaves Noreco with full ownership of the significant Siri insurance claim, a 10 per cent working interest in the producing Lulita field, and very limited financial obligations in Denmark.

Contact:
Tommy Sundt, CEO. Tel.: +47 992 83 900
Odd Arne Slettebø, CFO. Tel.: +47 992 83 900
investorrelations@noreco.com

This information is subject of the disclosure requirements pursuant to section of 5-12 of the Norwegian Securities Trading Act.

***

About Norwegian Energy Company ASA

Noreco is an independent Norwegian oil company. The company's focus is to explore, develop and produce oil and gas in the North Sea region. Noreco was incorporated in 2005 and operates in Norway, Denmark and United Kingdom. The company’s stock is listed on the Oslo Børs (ticker NOR). For further information, please visit: www.noreco.com.