Norse Announces Convertible Loans

9 Aug, 2012 18:52 CET

 9 August 2012
Norse Energy Corp. ASA ("NEC" ticker Oslo Stock Exchange, Norway;
"NSEEY" ticker U.S. OTC) announces that the Board of Directors, in
accordance with the authorization given by the Extraordinary General
Meeting held 5 July 2012, has resolved to approve the entering into of
three convertible loan agreements in the aggregate loan amount of NOK 5
million. The loans have been subscribed by SAF Invest AS (NOK 2
million), Jan Henry Farstad (NOK 2 million) and Tyrholm & Farstad AS
(NOK 1 million).

The loans will be at an interest rate of ten percent per annum, with a
maturity date of three years after the payment date, expected to be on
or about 10 August 2015. The loans will be unsecured and may be
converted into shares in Norse Energy. The conversion price will be the
lesser of the volume weighted average trading price the five days
preceding the funding date of the loan or the lowest subscription price
for private placements prior to 1 July 2015.

Norse Energy owns or leases approximately 130,000 net acres in New York
State of which ~33,000 lie in the liquids rich shale fairways of Western
New York, and the remaining ~97,000 net acres lie in the Marcellus and
Utica natural gas fairways of Central New York. Internally estimated
contingent resources total ~917 MMBOE or ~5.2 TCFGE.

For further information, please contact:

J. Chris Steinhauser, Chief Financial Officer

Direct: +1 713 975 1900

Email:  

Dennis Holbrook, Chief Legal Officer

Direct:  +1 716 568 2048

Email:  dholbrook@norseenergy.