Noreco Exits Oman and Germany

Noreco (Norwegian Energy Company ASA) has entered into an agreement to sell its assets in Oman to Tethys Oil AB. Noreco has also decided not to renew the license term on the German continental shelf.

Noreco has through its subsidiary Altinex Oil Denmark A/S entered into an agreement to sell all its assets in Oman to Tethys Oil AB. Under the agreement, Noreco will sell its 50% interest in Blocks 3 and 4 onshore Oman for a consideration of US$2 million to be paid in cash. The agreement is subject to customary approvals. Following completion of this transaction, Noreco will not have any remaining interests or obligations in Oman.

Noreco has also decided not to renew the license term of licenses B20 008/64 and B20 008/69 on the German continental shelf, which expired on 31 October 2007. Following this relinquishment, Noreco does not hold any assets in Germany.

"Since we completed the acquisition of Altinex ASA we have been clear on our intent to divest of non-core assets. This process is now completed. With the transactions announced today our portfolio is focused on upstream oil and gas activities in the North Sea. We are very pleased to have delivered these divestments in parallel with executing the company's aggressive growth strategy and preparing for listing at Oslo Bors, says Scott Kerr, CEO of Noreco."

Thor Arne Olsen, Vice President Commercial of Noreco, commented: "These transactions are further examples of the team's ability to execute deals and deliver on our milestones"