New oil and gas discovery for Noreco

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Stavanger 8 July, 2009: Norwegian Energy Company ASA (Noreco - OSE:NOR), Noreco announces an oil and gas discovery in the Grosbeak prospect in Norway, where Noreco holds a 20% interest.

- Grosbeak is a very promising discovery that is important to Noreco, says Lars Fosvold, Vice President Exploration .
 
Hydrocarbons were found in both targets for the well. The preliminary volume for the discovery is estimated to be between 35 and 190 million barrels of recoverable oil equivalents.
 
- The successful results from this well has increased the likelihood of additional discoveries on the license, and the total resource potential to Noreco is in excess of 100 million barrels of oil equivalents net, says Lars Fosvold.
 
In addition to Grosbeak, there are 4 main prospects and 7 smaller prospects in the license. The volume potential in the remaining 4 main prospects is substantial and estimated to be up to 375 million barrels of recoverable oil equivalents gross. Noreco also owns 20% of the neighboring license PL417 and is therefore well positioned in this prospective area, see attached map. The license is close to existing infrastructure.
 
The Grosbeak well is part of Noreco's selective exploration program which focuses on exploration wells that have a high value creation potential for Noreco. Noreco has made three discoveries in 2009, Gita in Denmark, Gygrid in the Norwegian Sea and Grosbeak which was announced today. The next well will be in the Noreco operated PL412 where the Tasta prospect (see attached) will be drilled. The Tasta well is expected to spud in August and results are expected by end Q3 2009.
 
Facts about the Grosbeak exploration well, 35/12-2:
Grosbeak is located in production license 378 where Noreco holds a 20% interest and Wintershall Norge ASA is the operator. Production license 378 was awarded in APA2005 and Grosbeak is the first exploration well in the license.
 
35/12-2 was drilled to a vertical depth of 2512 m below the sea surface and was concluded in the Rannoch Formation in the Middle Jurassic. The well was drilled in 360 meters of water using the Songa Delta drilling vessel.
 
The objective of the well was to test the hydrocarbon potential in the Sognefjord Formation and Fensfjord Formation in the Upper Jurassic and in the Brent Group in Middle Jurassic. 35/12-2 found oil and gas in the Sognefjord Formation and oil in the Brent Group. An extensive data collection program has been carried out.
 
For further information, please contact:
Scott Kerr, CEO (+47 992 83 890)
Einar Gjelsvik, VP Investor Relations (+47 992 83 856)