Norse Energy Takes Stake in Sardinha Fas Field Offshore Brazil

Norse Energy has executed a farm in agreement with Companhia Brasileira de Petroleo Ipiranga to purchase a 20% interest in the Sardinha field, offshore in the Camamu/Almada Basin, Brazil. The other Partners are Petrobras ( 40%) and El Paso (40%), as Operator.

The field is located 50 km south of the Manati gas field in 20 meters of water and approximately 5 km offshore.

The field is fully evaluated and delineated with 2D and 3D seismic and a total of 11 wells have been drilled in the license, of which 6 are discoveries.

The operator has submitted the Development Plan to the Brazilian governing body ANP. The development plan indicates total associated gas in place of between 250Bcf and 300Bcf of which 160Bcf of gas is anticipated to be recovered. In addition, the Operator estimates a volume of high viscosity Oil in Place of 126 MMbbl with a potential to recover 15% of this volume. This oil project is still under evaluation.

The purchase price is confidential until ANP approves the transaction. We anticipate an IBAMA environmental license process similar to the one for the Manati field.