Norse Completes Sale of Assets

17 May 2012

Norse Energy Corp. ASA (“NEC” ticker Oslo Stock Exchange, Norway; “NSEEY” ticker U.S. OTC) is pleased to report that it has completed the USD 37 million asset sale previously announced on 15 March, 2012. Conveyed assets include substantially all of the Company’s producing wells, approximately 23,000 held by production (“HBP”) or owned acres, the associated natural gas gathering system, and pipeline rights of way in Central New York. Norse retains a 37.5% working interest in all deep formations, including the Utica Shale on the conveyed acres. The buyer also received a three year warrant to purchase 81 million Norse Energy shares at a strike price of NOK 0.40.

After purchase price adjustments and closing costs, net cash consideration to Norse is ~USD 34.5 million.

“This is a significant milestone for Norse Energy,” commented Norse CEO Mark Dice. “This asset sale provides the cash needed to complete the bond debt restructuring that we announced on 28 February. Norse is now much better positioned to create value for shareholders through development of its significant shale resources,” concluded Dice.

The buyer is EmKey Resources, LLC, a private company, led and partially owned by Øivind Risberg, a current Norse board member and former Norse Energy CEO. As part of this transaction, EmKey has committed to construct a new pipeline system in Central New York capable of transporting at least 90,000 Mcf/day for 15 years once Norse so nominates.

Following this sale, the Norse Energy will own or lease approximately 130,000 net acres in New York State of which ~33,000 lies in the liquids rich shale fairways of Western New York, and the remaining ~97,000 net acres lies in the Marcellus and Utica natural gas fairways in Central New York. Contingent resources on Norse’s acreage after the sale total approximately 777 MMBOE or about 4.4 TCFGE.

For further information, please contact:

J. Chris Steinhauser, Chief Financial Officer
Phone: +1 716 568-2048 Email: csteinhauser@norseenergy.com

S. Dennis Holbrook, Chief Legal Officer
Cell: +1 716 713-2489 Email: dholbrook@norseenergy.com

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