Stavanger, 16 April 2012: Norwegian Energy Company ASA (Noreco) is pleased to announce that production has started from the Oselvar field, where Noreco has a 15 percent interest.

"The startup of Oselvar production is an important milestone for Noreco. This is the first field development for Noreco on the Norwegian Continental Shelf, and it represents the largest greenfield investment so far in the company's history. Oselvar will contribute to renew and diversify our portfolio of producing fields, and will contribute significantly to Noreco's production and cash flow," said Einar Gjelsvik, CEO in Noreco.

The Oselvar field has been developed by the operator DONG E&P Norge with a subsea template which is tied back to the BP operated Ula field, located 23 kilometres away from Oselvar. The start-up is based on production from two horizontal production wells, while the third is currently being drilled and will be completed before the summer. The oil from Oselvar is transported via Ekofisk to Teesside where it is sold, while the gas is re-injected into the Ula reservoir.

The field is expected to produce for around 20 years. Total estimated reserves are 53 million barrels oil equivalents (boe), equally split between oil and gas. At full capacity, Noreco's share of Oselvar production is estimated to 2,500 - 3,000 boe per day.

DONG E&P Norge is the operator of the Oselvar field with 55 percent interest, while Bayerngas Norge has 30 percent and Noreco has 15 percent interests. The field is located in the licences PL274 and PL274CS in the southern part of the Norwegian North Sea.

Contact:
Kjetil Bakken, VP Investor Relations (+47 91 889 889)

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