NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

 

 

Stavanger, 04 May 2009 Norwegian Energy Company ASA ("Noreco") has retained Pareto Securities AS, RS Platou Markets AS and SEB Enskilda AS (the "Managers") to advise on and effect a private placement of new shares directed towards Norwegian investors and international institutional investors. Noreco may in the private placement issue up to 13,400,000 shares, equalling approximately 9.3% of the outstanding share capital. The price will be determined through a book-building process with an indicative price range set between NOK 15.00 - 16.80 per share. The final share price may, however, be set within, below or above the indicative price range. The minimum order in the private placement has been set to the number of shares that equals an aggregate purchase price of at least the NOK equivalent of EUR 50,000.

 

Major shareholders have committed to subscribe for at least their relative shareholding.

 

The proceeds from the private placement will be used to fund an expected increase in capital expenditure related to recent exploration success and general corporate purposes.

 

The book-building period opens today (4 May 2009) at 17:30 CET and closes on 5 May 2009 at 13:00. The Board of Noreco may, however, at any time resolve to close or extend the book building period at its own discretion, but in no event earlier than 5 May 2009 at 08:30 CET.

 

Shares offered in the private placement will comprise of already listed shares made available for the Managers by a consortium of existing shareholders based on a Stock Lending Agreement by the Managers. All shares offered in the private placement pursuant to the Stock Lending Agreement are tradable on Oslo Børs at the time of delivery to the subscribers.

 

The shares borrowed will be returned by issue of new shares under an authorisation granted to the Board of Noreco by a shareholders' resolution passed on 25 April 2008. The shares to be offered have not been and will not be registered under the U.S. Securities Act of  1933, as amended (the `U.S. Securities Act`), or  any state securities laws, and will be offered within the United States only to qualified institutional buyers (`QIB`), as defined in Rule 144A under the U.S. Securities Act (`Rule 144A`), through affiliates of the Managers, in reliance upon the exemption from the  registration requirements provided by section 4(2) of the U.S. Securities Act Rule 144A, and to certain non-U.S. persons in offshore transactions  in reliance on Regulation S under the U.S.  Securities Act. The shares to be offered will be subject to certain restrictions on transfer.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

 

 

For further information, please contact:

Scott Kerr, CEO, +47 992 83 890

Einar Gjelsvik, Vice President Investor Relations, +47 992 83 856