Gas discovery in Zidane-1

Bullet

Stavanger, 16 September 2010: Norwegian Energy Company ASA (Noreco, OSE:NOR) is pleased to announce that drilling of the Zidane-1 exploration well on Haltenbanken has been successfully completed and has resulted in a gas discovery.

- We are very pleased with this discovery which in itself is significant to Noreco, and which also opens up for more exciting exploration opportunities in the license, says Noreco's CEO Scott Kerr. - Zidane-1 is located near existing infrastructure which provides several options to commercialize and develop the discovery, Kerr says.

The well's primary exploration target was to prove petroleum in Middle Jurassic reservoir rocks (the Fangst group). The secondary exploration target was to prove petroleum in Lower Jurassic reservoir rocks (the Tilje formation). Gas has been proven in a 150-metre column in the Fangst Group. The Tilje formation is water-bearing. The operator's preliminary estimates place the size of the discovery between 5 and 18 billion standard cubic metres (Sm3) of recoverable gas.

Comprehensive data acquisition and sampling was carried out, and a successful drill stem test was performed. The test produced 1.2 million Sm3 gas per day on a 36/64 inch choke. The data will now be further analyzed before an updated resource estimate can be given.

The Zidane-1 discovery contributes to improved prospectivity for the adjacent structure Zidane-2 which has been mapped in the same license, and which is very similar in terms of size and geology.

Zidane-1 is the first exploration well in license PL435 and is numbered 6507/07-14 S. The well is located about 15 kilometres northwest of the Heidrun field and 35 kilometres south of the Skarv field in the Norwegian Sea. Operator is RWE Dea Norge AS. Noreco has a 20 per cent interest in the license.

For further information, please contact:
Scott Kerr, CEO (+47 992 83 890)
Kjetil Bakken, Investor Relations Manager (+47 91 889 889)

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)