Norse U.S. Subsidiary Files for Chapter 11

Norse Energy announced Friday that its U.S. subsidiary, Norse Energy Corp. USA, has filed a voluntary petition for Chapter 11 Debtor in Possession (DIP) protection and reorganization under the United States Bankruptcy Code.

The purpose of the Chapter 11 petition is to allow the U.S. subsidiary an opportunity to reorganize its business affairs, restructure its debts, and generally protect the interests of all of its stakeholders. The US subsidiary will seek DIP financing to fund its operations and will welcome such proposals from all interested parties.

The company advises that the subsidiary Chapter 11 filing will likely constitute an event of default under the loan agreement in respect of the NEC convertible callable bond issue 2012/2015. This may result in the outstanding bonds in the amount of $21 million at the Norse Energy level being declared to be in default and due for payment, if the bondholders elect to do so.

The company continues to pursue alternatives to secure funding for the Norwegian parent company, Norse Energy Corp. ASA.

The company has a significant land position of 130,000 net acres in New York State with certified 2C contingent resources of 951 million barrels of oil equivalent as of 30 June 30, 2012.


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