South Arne Phase 3 development project approved

Stavanger, 26 November 2010: Norwegian Energy Company ASA (Noreco, OSE:NOR) is pleased to announce that the owners of the South Arne field in Denmark have approved the Phase 3 development project, which will add approximately three million barrels oil equivalents of new reserves net to Noreco.

The South Arne Phase 3 project includes drilling, completion and stimulation of 11 new production wells, which will be produced via two new wellhead platforms to be connected to the existing South Arne production platform. Noreco's share of capital expenditures is estimated to approximately NOK 450 million spread over the next six years.

South Arne is located in the Danish sector of the North Sea, and has been producing since 1999. Current production is approximately 25,000 barrels of oil equivalents per day. Production from the Phase 3 expansion is expected to commence towards the end of 2012 and will significantly increase the overall recovery of reserves from the field.

The necessary approval from the Danish Energy Agency was received in October.

Noreco has a 6.6 % interest in the South Arne field, which is situated in license 07/89. The field is operated by Hess Corporation (57.5 %). Other partners are DONG Energy (34.4 %) and Danoil (1.5 %).

For further information, please contact:
Kjetil Bakken, Investor Relations Manager (+47 91 889 889)