Development plan submitted for Brynhild field

Stavanger, 2 August 2011: Norwegian Energy Company (Noreco) is pleased to announce that Lundin Petroleum on behalf of license PL 148 in Norway has submitted the Plan for Development and Operations (PDO) for the Brynhild field (previously known as Nemo) to Norwegian authorities.

The Brynhild field is located adjacent to the Norwegian - United Kingdom (UK) international border. The PDO includes three wells and pipelines/umbilical tied back to the existing Shell operated Pierce field infrastructure in the UK sector of the North Sea. Brynhild is estimated to hold 22 million barrels of oil in gross proved and probable reserves with a forecast gross peak production of approximately 12,000 barrels of oil per day.

Noreco has also entered an option agreement which gives the company a right to sell its interest in PL148 to another party. This option expires during fourth quarter 2011, and Noreco will over the coming months evaluate its position in the Brynhild development and make a decision on whether to invest in the project or sell its interests in the license. A potential sale under this option agreement is not expected to have any material impact on Noreco's financial results or covenants.

Noreco has a 20 percent working interest in the Brynhild field. Lundin Petroleum is the operator and has a 50 percent interest in the field, while Talisman holds a 30 percent interest.

Contacts:
Einar Gjelsvik, CEO (+47 992 83 856)
Kjetil Bakken, VP Strategy & Investor Relations (+47 91 889 889)

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