Norse Sells Utica Assets To EmKey

To acquire 22,000 HBP acres targeting Utica shale and associated pipeline assets in central NY.

Norse Energy Corp. ASA announced that it has entered into a definitive agreement to sell its operated production, approximately 22,000 held by production acres (in which Norse retains a 37.5% working interest in the deep Utica formation), gathering system, and pipeline rights of way in Central New York. The buyer will also receive a three year warrant to purchase 81 million shares at a strike price of NOK 0.40 at the closing date. Total cash consideration to Norse is USD 37 million.

The buyer is EmKey Resources, LLC, a privately owned company, led and partially owned by Øivind Risberg, a current Norse board member and former Norse Energy CEO.

An Extraordinary General Meeting of Shareholders in Norse will be scheduled for early April to seek approval for the transaction, which is expected to close on or about April 16, 2012.

In connection with this transaction, the buyer is committed to construct a pipeline capable of transporting a minimum of 90,000 Mcf/day, once Norse so nominates for firm transportation.

Following this sale, the Company will own or lease approximately 131,000 net acres in New York State of which approximately 33,000 lies in the liquids rich shale fairways of Western New York, and the remaining approximately 98,000 net acres lies in the Marcellus and Utica natural gas fairways in Central New York.