US Bankruptcy Court Supports Norse Energy US Subs Interim DIP Financing

10 April 2013

Norse Energy Corp. ASA ("NEC" ticker Oslo Stock Exchange, Norway) announces that its US subsidiaries, Norse Energy Corp. USA and Norse Energy Holdings, Inc., have received approval from the bankruptcy court, subject to amendments which were agreed upon verbally by all parties, for interim financing of up to USD 800,000. It is anticipated the amendments will be formally approved tomorrow. A hearing has been scheduled for April 29, 2013 to address final approval of the balance of the USD 3.8 million Debtor in Possession (“DIP”) loan.

Norse previously advised that the loan will: (i) be collateralized by the assets of the US subsidiaries, (ii) bear interest at 12% per annum payable at maturity, (iii) have a maximum term of 9 months, and (iv) have a 6% commitment fee assessed on the unused portion of the DIP loan facility. The facility requires Norse Energy Corp. USA to commence a process by July 10, 2013 to sell assets or propose a plan of reorganization. The “DIP” financing will only fund the US subsidiary’s operations while in Chapter 11.

As previously advised, the Norwegian parent company, Norse Energy Corp. ASA, is in default on its existing loans and requires a separate source of funds to sustain operations. Consequently, Norse Energy Corp. ASA is in close dialogue with its creditors and other stakeholders in pursuit of new funding. There is a risk that refinancing of the Norwegian parent company could result in a substantial dilution of existing shareholders. The Company will update the market in due course on any developments.

The Company has a significant land position of ~130,000 net acres in New York State with certified 2C contingent resources of 951 MMBOE as of 31 December 2012.

For further information, please contact:

Chris Steinhauser, Chief Financial Officer
csteinhauser@norseenergy.com
Office: +1 713 975 1900

S. Dennis Holbrook, Chief Legal Officer
dholbrook@norseenergy.com
Office: +1 716 568 2048

Subscribe