NEC First Quarter 2008 Results

First Quarter Highlights and Subsequent Events
- EBITDA was USD 30.0 million (USD 0.3 million excluding Medina
sale), up from USD 12.2 million in the fourth quarter 2007. Dry hole
costs in Brazil amounted to USD 5.4 million. Net profit for the
quarter was USD 10.9 million compared to net loss of USD 26.2 million
in the prior quarter.
- The completion of the sale of the Medina assets resulted in a gain
of USD 29.75 million.
- Drilled seven horizontal wells, three vertical wells and two
exploratory wells in the US per May 20, 2008. Few are online,
although indications are encouraging.
- Land cost has significantly increased during 2008, mainly due to
encouraging Marcellus shale discoveries in northern Appalachia in
areas proximal to the company`s extensive lease and pipeline
position.
- All six wells are online at the Manati gas field, and the partners
evaluate further production increase beyond the current 6 billion
cubic meters contracted capacity.
- Successful water injection in Coral #5 resulted in encouraging
reservoir reaction and increased Coral #4 production.
- Drilling of a sidetrack in the exploratory Gengibre prospect in the
BCAM-40 block in the Camamu-Almada Basin offshore Brazil deemed not
commercially viable.
- The environmental licenses to drill offshore exploratory wells in
the BM-CAL 5 and BM-CAL 6 blocks were received in April 2008, and a
rig has been commissioned.
- Postponed public offering of Brazilian subsidiary Norse Energy do
Brazil S.A. due to general market unrest.

Please find the first quarter 2008 report and presentation enclosed.

The web presentation will be available at 8:30 am Tuesday May 20,
2008 using the following link:
http://www.cik.no/norse/080520/080520_norse.php

Contact info:
Anders Kapstad, CFO
Tel.: +47 67 51 61 12
Mob.: +47 918 17 442

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