Norse Energy to Sell Selected Midstream Assets for $20.7 Million

Norse Energy Corp. ASA (“NEC” ticker Oslo Stock Exchange, Norway; “NSEEY” ticker U.S. OTC) is pleased to announce that, through its subsidiary Norse Energy Holdings, Inc., it has executed  Purchase and Sale Agreements (“Agreements”) to sell certain of its midstream assets to Appalachian Transportation and Marketing LLC (“Appalachian”) for a total consideration of  $20.7 million. The midstream assets consist of the Company’s Norse Pipeline, LLC (“Norse Pipeline”), Nornew Energy Supply, Inc. (“NES”) and Mid-American Natural Resources, LLC. (“MANR”).

Norse Pipeline and NES are subject to regulation by the New York Public Service Commission (“Commission”), who must therefore approve the transfer to Appalachian.  The Company filed for the necessary regulatory approval immediately upon execution of the previously announced Letter of Intent, with Appalachian CEO and former Norse Energy CEO Oivind Risberg.  The Company anticipates timely Commission action with closing to follow immediately upon receipt of the requested regulatory approval for conveying Norse Pipeline and NES to Appalachian. No such regulatory approval is anticipated to be required for MANR.

“With the sale in 2008 of the majority of our production properties in western New York, these midstream assets were no longer core to our exploration and production activities which have focused on the Herkimer Sandstone and Marcellus and Utica Shale potential of central New York,” comments Norse Energy CEO Mark Dice.  “This transaction is reflective of our approach to non-core assets, when the opportunity is presented to divest on favorable terms and remain focused on exploration and production,” concludes Dice.

Norse Energy has 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 of which ~130,000 acres are strategically located in the Marcellus and Utica Shale fairways.

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