Norse Energy Notes Manati Gas Production, BCAM-40 Expiration

Norse Energy do Brasil (10%) is pleased to inform that the Manati field reached a record production of 7.13 million m3 (4 485 BOE net to Norse Energy do Brasil) on September 17. The average production so far this quarter is 5.23 million m3 per day (3 290 BOE net to Norse Energy do Brasil). The lower volume earlier this quarter was caused by the maintenance of the FAFEN fertilizer plant. This maintenance is now completed and the demand for the Manati gas production is back to normal level. Norse expects that the production will stabilize on a high level for the rest of the year (above 6 million m3/day) and will increase further in 2010.

Relinquishment of BCAM-40 exploration block and Commercialization of BAS-131

The exploration license of BCAM-40 has expired and as a consequence the BCAM-40 exploration block will be relinquished back to the Brazilian authorities, ANP. The results from the exploration activity concluded in this block does not justify keeping the exploration block. The consortium will therefore have no further exploration activity in this block. The consortium has declared commerciality of the BAS-131 discovery in the southern part of BCAM-40 block and named it "Camarão Norte" (CRN).

This field was discovered in 2001, 9 km south of the Manati field and extends to the south into the BM-CAL-4 block which is 100% owned by El Paso. The field reservoirs of the Camarão Norte are of Sergi sandstones (same as the Manati field) and Norse estimates that these reservoirs hold 12.4 MMBOE of recoverable hydrocarbons (oil and gas). The CRN is a ring fenced area of 17 square km in 40 meters of water depth. Norse share (10%) of the estimated recoverable oil and gas adds to 1.24 MMBOE. In September 2007, El Paso declared commerciality of the field in the BM-CAL-4 block and proposed the name of Camarão for the field. According to the Brazilian Petroleum Law, the two areas of the field have to be unitized and a single development plan has to be proposed to ANP. The unitization discussions will be held in the coming months.