Norse Energy Unloads New York Acreage, Royality Interests

To acquire eases and fee interests totaling approximately 22,700 acres in central NY & ORRI of 2.5% on 24,300 HBP in central NY; 3.75% on 84,000 non-HBP leased and fee acres in central NY & 6.25% on 33,000 acres in western NY.

Norse Energy Corp. ASA, Lysaker, Norway, (Oslo: NEC, OTCBB: NSEEY) plans to sell acreage and overriding royalty interests in New York to an undisclosed buyer for US$26.7 million in cash.

The deal includes leases and fee interests totaling approximately 22,700 acres in Central New York and overriding royalty interests of 2.5% on 24,300 acres that are held by production in Central New York; 3.75% on 84,000 non-held-by-production leased and fee acres in Central New York; and 6.25% on 33,000 acres in Western New York.

Not included in this transaction are Norse’s proved reserves, including those reserves in the Herkimer formation.

Norse received US$21.7 million as the first installment. The remaining cash consideration of US$5 million will be held in escrow to allow the buyers adequate time to conclude confirmatory due diligence, whereupon the remaining funds will be disbursed to Norse no later than March 31, 2012.

Norse chief executive Mark Dice says, “This transaction represents an important first step in providing liquidity for the company and reflects renewed interest in our New York acreage. Norse remains hopeful that the SGEIS approval process will be complete so that development of our significant shale resources can commence in 2012.”

Norse retains a significant land position of approximately 160,000 net acres in New York state of which approximately 110,000 net acres are in the Marcellus and Utica shale fairway in Central New York.