Noreco successfully completes bond issue

Stavanger, 1 April 2011: Norwegian Energy Company ASA (Noreco, OSE: NOR) has successfully completed a new 5 year senior secured bond issue. The net proceeds from the bond issue will be used for (i) financing of Noreco's share of the costs associated with the Oselvar development and (ii) other petroleum activities on the Norwegian continental shelf.

The borrowing amount is NOK 600 million, split between a fixed rate tranche and a floating rate tranche, with interest rates of 10.25% and NIBOR +6.00%, respectively. Settlement date for the bond issue is expected to be 27 April 2011. An application will be made for listing of the bond issue on the Oslo Stock Exchange.

First Securities and Pareto Securities acted as joint managers and SEB Merchant Banking as co-manager of the bond issue.

For further information, please contact:
Rebekka Glasser Herlofsen, CFO (+47 916 60 269)
Kjetil Bakken, VP Strategy and Investor Relations (+47 91 889 889)

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

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