Noreco Completes Private Placement, Makes Subsequent Offer

Norwegian Energy Company ASA (Noreco) has completed a private placement for 19,149 million new shares. The private placement was substantially over-subscribed. The subscription price was set to NOK 23.50 per share, giving gross proceeds of approximately NOK 450 million.

"We are very pleased with the great interest in the private placement. The acquisition of Talisman Oil Denmark will strengthen Noreco's results, cash flow and balance sheet, and gives us an excellent position from which to grow further," said Scott Kerr, CEO of Noreco.

Completed Private Placement

Reference is made to the stock exchange notice regarding a planned private placement dated 25 April 2008. Noreco has on 25 April 2008 completed a private placement for a total of 19,149,000 new shares. The private placement was substantially over-subscribed. The subscription price was set to NOK 23.50 per share, giving gross proceeds of approximately NOK 450 million. Pareto Securities AS and Glitnir Securities AS acted as joint lead managers in the transaction.

The total issued share capital in Noreco will increase from NOK 346,390,410.20 to NOK 405,752,310.20. The total number of shares will increase from 111,738,842 to 130,887,842.

The purpose of the private placement was i.a. to finance the acquisition of 100% of the shares in Talisman Oil Denmark Limited which owns 30% of the Siri license interest, as announced on 25 April 2008.

Allocation letters will be sent out today. Payment date has been set to 2 May 2008. The subscribers will be delivered existing and unencumbered shares in the Company that are already listed on Oslo Bors, pursuant to a share lending agreement entered into between Pareto Securities AS, Noreco and major shareholders in Noreco.

The shares delivered to the subscribers will be tradable from the date they are delivered.

Subsequent Offering

The Board of Directors in Noreco has resolved to conduct a subsequent repair offering towards the shareholders in Noreco that were not invited to participate in the Private Placement. The subscription price in the Subsequent Offering will be equal to the price set in the Private Placement.

Based on the shareholders registered and the invited selected shareholders in the Private Placement, the size of the Subsequent Offering is expected to amount to approximately NOK 50-60 million. The company will also prepare a prospectus to be approved by Oslo Bors in connection with the Subsequent Offering. Consequently, the timing of the Subsequent Offering is not yet decided, but the offering is expected to start within the month of May 2008.

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