Completion of acquisition of Shell's Danish upstream assets

31 July
2019, Q3

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Oslo, 31 July 2019: Norwegian Energy Company ASA ("Noreco" or the "Company") hereby announces that Noreco, through a wholly owned subsidiary, has today completed its acquisition of 100% of the shares in Shell Olie- og Gasudvinding Danmark B.V. (the "Acquisition").

Through this acquisition, which was agreed and announced on 17 October 2018, Noreco has become the second largest oil and gas producer in Denmark and a considerable independent exploration and production company in the North Sea. Noreco has a 36.8% interest in the Danish Underground Consortium (DUC), a joint venture with 15 producing fields and related infrastructure. Noreco also increased its interest in the Lulita field from 10% to 28.4%.

“With the successful completion of this transformational acquisition, we will now work closely with the operator to maximise recovery of proven reserves and resources. We will seek to continue value creation also by exploring new opportunities in the DUC concession and elsewhere,” says Riulf Rustad, Chair of the Board of Noreco.

Included in the acquisition are proven and probable (2P) reserves of 195 million barrels of oil equivalents per year end 2018 based on the most recent independent assessment, of which 66% are liquids. The seller’s share of production from DUC in 2018 was 57 thousand barrels of oil equivalents per day.

In connection with closing of the Acquisition, as previously informed, inter alia the following has taken place; (i) the release of funds to the acquiring subsidiary from the seven-year USD 900 million Reserve Based Lending Facility, (ii) Noreco's repayment of the outstanding NOR10 bond loan, as announced on 30 July 2019, (iii) the completion of the directed share capital increase of USD 352 million in Noreco (the "Private Placement"), as announced on 26 July 2019, and (iv) the completion of the convertible bond loan issue in Noreco with the principal amount of USD 158,138,102 (the "Convertible Bond"), as announced on 26 July 2019.

Noreco is in the process of preparing a prospectus (the “Prospectus”). It is currently expected that the Prospectus will be approved by the Financial Supervisory Authority of Norway on or about 9 August 2019. Following approval of the Prospectus; (i) the new shares issued in the Private Placement will be tradable on Oslo Børs, (ii) the bonds in the Convertible Bond shall be listed on Oslo Børs, and (iii) the commencement of the subscription period for the up to USD 40 million subsequent offering towards eligible existing shareholders of Noreco as of 16 October 2018, as resolved on the extraordinary general meeting held on 8 November 2018 (the "Subsequent Offering"). Provided timely approval and publication of the Prospectus, the subscription period for the Subsequent Offering is expected to commence on or about 12 August 2019.

The Company has posted a Company update on its web-pages https://www.noreco.com/uploads/documents/190731-Noreco-Company-Presentation.pdf

Contacts:  

Riulf Rustad, Chair of the Board, +47 900 87 703 or ir@noreco.com

About Norwegian Energy Company ASA

Noreco is a publicly owned company with focus on the oil, gas and offshore industry. The Company's shares are listed on Oslo Børs (ticker NOR). For further information, please visit: www.noreco.com.

IMPORTANT INFORMATION

The contents of this announcement have been prepared by, and are the sole responsibility of, the Company. The Company's financial advisors are acting exclusively for the Company and no one else, and will not be responsible to anyone other than the Company for providing the protections afforded to their respective clients, or for advice in relation to the securities transactions, the contents of this announcement or any of the matters referred to herein.

The securities transactions and the distribution of this announcement and other information in connection with the securities transactions may be restricted by law in certain jurisdictions. The Company assumes no responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about, and to observe, any such restrictions.

This announcement may not be used for, or in connection with, and does not constitute, any offer of securities for sale in the United States or in any other jurisdiction. The securities transactions have not been made in any jurisdiction or in any circumstances in which such offer or solicitation would be unlawful. This announcement is not for distribution, directly or indirectly in or into any jurisdiction in which it is unlawful to make any such offer or solicitation to such person or where prior registration or approval is required for that purpose. No steps have been taken or will be taken relating to the securities transactions in any jurisdiction in which such steps would be required.

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This announcement is not for publication or distribution, directly or indirectly, in the United States (including its territories and possessions, any state of the United States and the District of Columbia). This announcement does not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. The shares of the Company nor the shares or bonds issued in the securities transactions have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States, and may not be offered or sold in the United States or to, or for the account of, U.S. persons (as such term is defined in Regulation S under the US Securities Act), except pursuant to an effective registration statement under, or an exemption from the registration requirements of, the US Securities Act. All offers and sales outside the United States will be made in reliance on Regulation S under the US Securities Act. There will be no public offer of securities in the United States.

This announcement does not constitute an offering circular or prospectus in connection with an offering of securities of the Company. Investors must neither accept any offer for, nor acquire, any securities to which this document refers, unless they do so on the basis of the information contained in the investor material made available by the Company only to qualified persons in certain jurisdictions where an offer may be made (if an offer is made). This announcement does not constitute an offer to sell or the solicitation of an offer to buy or subscribe for, any securities and cannot be relied on for any investment contract or decision.

This document contains forward-looking statements. All statements other than statements of historical fact included in this information are forward-looking statements. Forward-looking statements are current expectations and projections relating to the Company's financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as "target,"  "believe," "expect,"  "aim," "intend,"  "may," "anticipate," "estimate,"  "plan," "project," "will," "can have," "likely," "should," "would," "could" and other words and terms of similar meaning or the negative thereof. Such  forward-looking statements involve known  and unknown risks, uncertainties and  other  important  factors  beyond  the Company's  control that could cause the    Company's   actual  results,  performance  or  achievements  to  be materially different  from the expected  results, performance or  achievements expressed or implied  by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which it will operate in the future.

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.