Norse Addresses SGEIS Status

11 October 2012

Norse Energy Corp. ASA (“NEC” ticker Oslo Stock Exchange, Norway; “NSEEY” ticker U.S. OTC) advises that recent public statements by the New York State Department of Environmental Conservation (NYDEC) concerning review of the Supplemental Generic Environmental Impact Statement (SGEIS) by the New York State Health Department, prior to its issuance, are consistent with, and a standard part of, normal agency practice. 

It should be noted that, in addition to preparing the SGEIS, the NYDEC is also preparing new drilling regulations to support SGEIS implementation.  These new drilling regulations are separate from the SGEIS. Once the SGEIS is issued, the NYDEC will have authority to commence the permitting process for high volume hydraulic fracturing (HVHF) of shale wells in New York State.

At the close of the New York legislative session this past June, New York Governor Cuomo publicly stated his desire that the SGEIS be issued when the legislature is out of session and that the decision be based on science and not politics.  The legislature is scheduled to return in January 2013.  “Governor Cuomo’s track record suggests that he typically meets his objectives and we fully expect him to meet his timing objective for the SGEIS as well,” commented Norse CEO Mark Dice. 

In a related action, the New York State Supreme Court ruled this week that the City of Binghamton’s attempt to impose a moratorium on gas drilling and associated activities was unlawful and therefore of no effect.  This ruling should discourage any local municipalities from passing moratoriums for oil and gas drilling activities that obstruct the NYDEC’s oversight in this area.

“With the expected issuance of the SGEIS, which Norse anticipates to be near year end or early January, and the recent NY State Supreme Court decision overturning a drilling moratorium.  , the trends are encouraging and we look forward to when Norse will be able to develop the tremendous resource potential on our owned and leased acreage in New York,” concluded Dice.

 Norse is still pursuing several funding alternatives and will update the market in due course. 

The Company now owns or leases approximately 130,000 net acres in New York State of which ~33,000 lie in the liquids rich shale fairways of Western New York, and the remaining ~97,000 net acres lie in the Marcellus and Utica natural gas fairways in Central New York.

For further information, please contact:
J. Chris Steinhauser, Chief Financial Officer
Phone: +1 713 975-1900 Email: csteinhauser@norseenergy.com

S. Dennis Holbrook, Chief Legal Officer
Cell: +1 716 713-2489 Email: dholbrook@norseenergy.com