Svaneøgle exploration well nearly completed

Bullet

Stavanger, 3 February 2011: Norwegian Energy Company ASA (Noreco) is in the process of completing the drilling of exploration well 17//6-1 on the Svaneøgle prospect.

The exploration well 17/6-1 was targeting the Svaneøgle Prospect and reached a total depth of 3065 m. The main objective was the Sandnes and Bryne formations of Middle Jurassic age. The well encountered oil in a five metre sandstone layer of low reservoir quality in the Sandnes-formation, while pressure measurements indicate a possible oil column of 45 metres. A water-bearing sandstone layer of good reservoir quality was encountered deeper in the Bryne Formation. The well was not tested, but data has been acquired. A preliminary estimate of the recoverable resources suggest between 0,05 and 1 million Sm3  of oil. The discovery is not of commercial interest. The water depth is 272 metres

Svaneøgle is located in license PL545, about 100 km south-east of the Grane field in the mid part of the Norwegian North Sea. The well was drilled by the semi-submersible drilling rig West Alpha.

Noreco has a 50 percent interest in the license and is the operator. Other partners are Spring Energy with 30 percent and Petoro with 20 percent interest.

Contact:
Rune Martinsen, VP Strategy and Investor Relations, +47 992 83 853

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