Norse Energy Corp has executed a final purchase agreement with Starfish Oil & Gas SA, a Brazilian Corporation, to buy all their 7.5% participating interest in the BS-3 project. The BS-3 Project includes Cavalo Marinho (CVM), Estrela-do-Mar (EM) and Coral (CRL) Fields. The acquisition is effective March 1, 2006 and encompasses production and expenses.
With the present acquisition NEC will own directly or through its subsidiaries:
- 50% of CVM, together with Petrobras 35% and Queiroz Galvao 15%,
- 65% of EM, with Petrobras 35%
- 35% of CRL, with Petrobras 35% and Queiroz Galvao 30%.
Funding of this acquisition will be through a combination of equity and bank financing.
NEC is pleased with this acquisition that further solidifies our presence in Brazil and improves the Company's influence over the future development of our BS-3 assets.