New York Assembly Passes Measure to Suspend Issuing Permits for Hydraulic Fracturing to May 2011; Norse’s Herkimer Program – Unaffected

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Norse Energy Corp. ASA ("NEC" ticker code OSE - NEC, Oslo, Norway, U.S. OTCQX symbol "NSEEY") and its subsidiaries (“Norse Energy” or “the Company”) advise that the New York State Assembly has now approved a Senate proposal to suspend hydraulic fracturing of gas reservoirs in New York State until May 15, 2011.  As the Company has previously communicated, the purpose of the bill is to ensure adequate time to review and analyze the effects on the environment of drilling with hydraulic fracturing.  For the proposal to become law, it still requires approval by outgoing Governor Patterson.  

 “If the proposal is approved, we foresee minimal impact on the company’s Herkimer drilling program because our Herkimer wells do not require hydraulic fracturing,” noted Norse Energy CEO Mark Dice. 

 The measure appears aimed at delaying implementation of new shale permitting rules which the New York Department of Environmental Conservation (DEC) is working to complete under the Supplemental Generic Environmental Impact Statement (SGEIS).  Consequently, our leaseholders and community representatives have been informed that a moratorium could trigger the lease force majeure clause and therefore extend the term of our leases.

 Norse Energy had total contingent resources of ~4 TCF (~713 MMBOE) at the end of 2009. The Company has a significant land position of 180,000 net acres in New York State. Norse Energy also owns a natural gas marketing business and operates pipeline systems in New York and Pennsylvania for gathering and transmission of natural gas.

For further information, please contact:

 
Richard Boughrum, Chief Financial Officer
Cell: +1 714 520 1702, Email: rboughrum@norseenergy.com

S. Dennis Holbrook, Executive Vice President

Cell: +1 716 713-2489, Email: dholbrook@norseenergy.com