Noreco Converts Bonds to Shares

Norwegian Energy Company ASA ("Noreco") offered all 6% Noreco convertible bondholders to convert their bonds to shares whereby accepting bondholders would receive a fixed premium of 7.0% to par value plus accrued interest in cash.

Noreco received acceptance from bondholders representing NOK 211.5 million of the outstanding NOK 430 million in bonds.

The new shares will be issued and registered in the Register of Business Enterprises and the Central Securities Depository as soon as possible.

The offer forms part of Noreco's continued efforts to optimize its capital structure. Conversion of the bonds will increase Noreco's market capitalization, reduce debt and reduce future interest costs. Furthermore, Noreco has experienced a strong increase in its shares' liquidity since the private placement in April and conversion of the bonds is expected to further support this trend.

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