Norse Energy - Brazil Update

Norse Energy Corp. ASA (“NEC” ticker code OSE – NEC, Oslo, Norway, U.S OTC symbol “NSEEF”)

Cravo drilling update

Norse Energy do Brasil announces that the drilling of the Cravo prospect in the BCAM-40 block has been completed. The well was logged and the logs showed that the Agua Grande sandstone reservoir had eight meters net thickness with gas but the main target in the Sergi sandstone reservoir was water bearing.
However, the Sergi reservoir had 50 meter sandstone with good porosities. This is positive for the remaining prospects in the BCAM-40 block, as reservoir quality was considered the main risk factor for these deep prospects. The well confirmed a functioning petroleum-system in the area and that gas had migrated to the prospect. The fact that the Sergi reservoir was water bearing indicates that the seal in the structure was inefficient. Consequently, the well will be plugged and abandoned.
Norse will recommend the consortium to study these facts and the relevance for the remaining prospects in the license before continuing the exploration campaign.

Farm out of BM-CAL 5 license

Norse Energy do Brasil has accepted an offer from Petrobras and Queiroz Galvão Oil & Gas to take over the company’s 18.3 percent participating interest in block BM-CAL-5 in Brazil (the Copaiba discovery and Jequitiba prospect).
According to Brazilian petroleum legislation a license cannot separate the prospects and both the Copaiba discovery and Jequtiba prospects must be considered as a single license for farm out purposes. As Norse has decided not to participate in the Jequitiba prospect, the company is thus farming out its interest in the BM-CAL-5 license.
Norse Energy do Brasil will not receive any compensation, but the transfer of ownership implies that the company will not carry any further drilling cost in BM-CAL-5 where drilling of Jequitiba is planned to commence shortly.

Debt restructuring

Norse Energy do Brasil is in final negotiations with its Brazilian banks regarding debt restructuring, in order to balance the 2009 budget. A final agreement with the banks is anticipated to be reached within the next month.

For further information please contact:

CFO Anders Kapstad, Norse Energy Corp. ASA, tel: (+47) 67 51 61 12,
(+47) 91 81 74 42
IR Jonas Gamre, Norse Energy Corp. ASA, tel: (+47) 67 51 61 13,
(+47) 97 11 82 92