Sale of Norse Pipeline and Mid-American Completed

Norse Energy Corp. ASA (“NEC” ticker Oslo Stock Exchange, Norway; “NSEEY” ticker U.S. OTC) is pleased to announce that it has completed the sale of the Company's Norse Pipeline, LLC (“Norse Pipeline”), Nornew Energy Supply, Inc. (“NES”) and Mid-American Natural Resources, LLC (“MANR”) to Appalachian Transportation and Marketing LLC (“Appalachian”) through its subsidiary Norse Energy Holdings, Inc

The sale Agreements, executed in February, were expressly subject to approval of the transfer of Norse Pipeline and NES to Appalachian by the New York Public Service Commission. This approval was received on May 19. The sales price of USD 20.7 million will be applied towards repayment of long term debt of USD 4.2 million associated with Norse Pipeline.  The net cash to Company will be USD ~16.5 million, net of certain transaction expenses and buyer prepaid deposits, and will be used for general corporate purposes.

Norse Energy CEO Mark Dice commented:  “This is execution of our strategy to divest non-core assets on favorable terms and reallocate corporate resources toward our core competencies in exploration and production.”  The CEO of Appalachian is Oivind Risberg, former Norse Energy CEO.

Norse Energy is a Herkimer company with significant upside the Marcellus and Utica Shales. At year end 2010 the Company had third party certified total contingent resources of 3.9 TCF (~700 MMBOE) of which approximately 3.7 Tcf are in the Marcellus and Utica. The Company has a significant land position of 180,000 net acres in New York State.

For further information, please contact:
Richard Boughrum, Chief Financial Officer
Cell: +1 714 520 1702
rboughrum@norseenergy.com 

S. Dennis Holbrook, Executive Vice President
Cell: +1 716 713 2489
dholbrook@norseenergy.com