NorecoEinar Gjelsvik, CEO

Pareto Oil & Offshore Conference, 31 August 2011

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This company presentation (the “Presentation”) has been prepared by Norwegian Energy Company ASA (“Noreco” or the “Company”). The Presentation has not been reviewed or registered with, or approved by, any public authority, stock exchange or regulated market place.

The Company makes no representation or warranty (whether express or implied) as to the correctness or completeness of the information contained herein, and neither the Company nor any of its subsidiaries, directors, employees or advisors assume any liability connected to the Presentation and/or the statements set out herein. This presentation is not and does not purport to be complete in any way.

The information included in this Presentation may contain certain forward-looking statements relating to the business, financial performance and results of the Company and/or the industry in which it operates. Forward-looking statements concern future circumstances and results and other statements that are not historical facts, sometimes identified by the words “believes”, expects”, “predicts”, “intends”, “projects”, “plans”, “estimates”, “aims”, “foresees”, “anticipates”, “targets”, and similar expressions. The forward-looking statements contained in this Presentation, including assumptions, opinions and views of the Company or cited from third party sources are solely opinions and forecasts which are subject to risks, uncertainties and other factors that may cause actual events to differ materially from any anticipated development. For a description of such risks, uncertainties and other factors; please see the Company's prospectus dated 6 July 2011. None of the Company or its advisors or any of their parent or subsidiary undertakings or any such person’s affiliates, officers or employees provides any assurance that the assumptions underlying such forward-looking statements are free from errors nor does any of them accept any responsibility for the future accuracy of the opinions expressed in this Presentation or the actual occurrence of the forecasted developments. The Company and its advisors assume no obligation to update any forward-looking statements or to conform these forward-looking statements to the Company’s actual results. Investors are advised, however, to inform themselves about any further public disclosures made by the Company, such as filings made with the Oslo Stock Exchange or press releases.

This Presentation has been prepared for information purposes only. This Presentation does not constitute any solicitation for any offer to purchase or subscribe any securities and is not an offer or invitation to sell or issue securities for sale in any jurisdiction, including the United States. Distribution of the Presentation in or into any jurisdiction where such distribution may be unlawful, is prohibited.

This Presentation speaks as of 31 August 2011, and there may have been changes in matters which affect the Company subsequent to the date of this Presentation. Neither the issue nor delivery of this Presentation shall under any circumstance create any implication that the information contained herein is correct as of any time subsequent to the date hereof or that the affairs of the Company have not since changed, and the Company does not intend, and does not assume any obligation, to update or correct any information included in this Presentation.

This Presentation is subject to Norwegian law, and any dispute arising in respect of this Presentation is subject to the exclusive jurisdiction of Norwegian courts with Stavanger City Court as exclusive venue.

By receiving this Presentation, you accept to be bound by the terms above.

Important information

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Noreco at a glance

• Exploration-driven E&P company

• Production from five fields– 2011-H2 est: 3,900 boe/day

• Two development projects ongoing– Adding 8-9,000 boe/day in 2012

• Significant portfolio of discoveries

• Extensive exploration activity

Noreco repositioned

4

• Financial position substantially improved

• Operational issues addressed

• Strategy focused

• Organisational changes and cost reduction underway

Asset sales for $300 million

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May 2011 May 2011 July 2011 August 2011 August 2011

Sale of Sale of Sale of Sale of Sale of

Brage Hyme Siri South Arne Flyndreto to to to to

Core Energy Core Energy DONG Energy HESS Maersk Oil

for a consideration of for a consideration of for a consideration of for a consideration of for a consideration of

$75 mill $10 mill $13 mill $200 mill $3.5 millProduction: Under development Avoiding substantial Production: Under development

2.800 boe/day repair cost and risk. 1.600 boe/dayCapex share: Reserves:

Reserves: NOK 800 million Full protection against Reserves: 0.4 mmboe6 mmboe Siri repair cost for the 8.8 mmboe

satellite fields.

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Oil & gas productionboe/day net

0

2 500

5 000

7 500

10 000

12 500

15 000

Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11

DiscontinuedLulitaCecilieNini EastNiniSiriSouth ArneEnochBrage

Volume 11 375 13 125 10 225 10 365 7 538 7 164

Price $74.0 $75.4 $74.4 $83.9 $103.9 $111.7

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Huntington FortiesNoreco 20%

Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12

FDP Approval

Engineering

Procurement

Construction

Marine installation

Drilling

Huntington project schedule

• Drilling on plan

• Subsea operations on plan

• FPSO delayed

– Schedule risk

– First oil in Q2-2012 still possible

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Oselvar Noreco 15%

Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13

PDO

Engineering

Procurement

Construction

Module inst. at Ula

Marine operations

Drilling

Oselvar project schedule

• On schedule – 56% completed per end-June

• Integration of Oselvar module on Ula host platform ongoing

• Drilling on plan

• Marine operations on plan

• First oil expected during first half of 2012

Exploration program

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• Active and focused exploration program from large portfolio

– Focus on wells with high value potential

– Clear entry and exit strategy for each license

– Active risk management and highgrading

– Operatorship when needed to get access/influence

Licensed acreage awarded on NCS last 10 years

Source: Storting White Paper 28 (2010 – 2011)

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2011 exploration wells

Albert

Kalvklumpen

Lupin

Clapton Luna

Arran

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Way forward

• Active and focused exploration program

• Renew and strengthen production base

• Active portfolio management

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13

0

10

20

30

40

50

60

70

80

90

100

2007-10 2011

Expected Discovered

Noreco’s exploration activitymmboe

• Discovered volumes have been in line with risked pre-drill estimates

• 85 mmboe discovered throughthe years 2007-2010

• 2011 program – Targeting more resources

than 2007-2010 in total– 10 wells– 2011 exploration budget

NOK 1.0-1.1 billion pre tax

Exploration success –the key to long-term growth

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Exploration performance and outlookMillion barrels of oil equivalents

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Upcoming exploration wells

Prospect License Noreco share

Chance of success

Volume potential

Drilling start (est.)

Chamonix PL471 30% 19% 65-170 Ongoing

Luna DK 1/11 47% 14% 196-490 Q4-11

Kalvklumpen PL414 20% 35% 36-110 Q4-11

Albert PL519 20% 24% 280-500 Q4-11

Zidane 2 PL435 20% 50% 140-240 Q4-11

Lupin PL360 15% 10% 102-760 Q1-12

Clapton PL440S 12% 25% 76-194 Q1-12

Jette/Sprott PL385 20% 50%/36% 17-73/7-22 Q1-12

1) Million barrels oil equivalents on 100% basis, P90-P10 interval2) Two prospects to be tested with one well

1)

2)

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PL471 – Chamonix Noreco 30% – OMV operated

• Amplitude supported stratigraphic trap, in emerging hydrocarbon province: Cretaceous Lysing sandstone. West of Mikkel

• Additional prospectivity also targeted in deeper horizons (Jurassic)

• 19% CoS – Primary risk element: Trap• 65 – 170 mmboe (gross)• Spud July 2011 with Borgland Dolphin

EW

W

E

Chamonix

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DK 1/11 – Luna Noreco 47% – Noreco operated

• Frontier play prospect, targeting Rotliegendes sands, requiring long range migration from Central Graben: Play opener and will de-risk larger Rocky prospect

• 14% CoS – Primary risk element: Trap• 196 – 490 mmboe (gross)• Expected spud Q4-2011 with Maersk Resolve

Central Graben

Horn Graben

Luna Rocky

N S

S

N

Luna

LunaClapton

02/05

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PL414 – KalvklumpenNoreco 20% – Det Norske operated• Simple anticline trap in mature Central

Graben play (Palaeocene) east of Frøy discovery

• 35% CoS – Primary risk element: Charge• 36 – 110 mmboe (gross)• Expected spud Q4 2011 with Songa Delta

Top Hermod Depth Map Det Norske license inventory map

Kalvklumpen

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PL519 – Albert Noreco 20% – Lundin operated

• The well will target a major fault bound high north of Tampen Spur hydrocarbon province (Statfjord, Snorre etc)

• Jurassic/Triassic target in emerging play, trap in close vicinity to discovery well 6201/11-1

• Currently under re-evaluation subsequent to new seismic (re-processed)

• 24% CoS – Primary risk element: Reservoir• 280 – 500 mmboe (gross)• Expected spud Q4-2011 with Transocean Winner

S

N

Albert

6201/11-1 Discovery

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PL435 – Zidane 2 Noreco 20% – RWE Dea operated

• Analogue prospect to the 2010 Zidane 1 discovery• Low risk prospect in mature play that will considerably

enhance the commerciality of the Zidane 1 discovery and may facilitate improved gas export options from area (incl. Viktoria)

• 50% CoS: Primary risk being geometry of trap• 140 – 240 mmboe• Expected spud in Q4-2011 with West Alpha

S

NZidane 2

A A’

South Arne divested

• To be sold for USD 200 million

• H1-2011 production 1,580 boe/day

• 8.8 mmboe net reserves per 31.12.2010

• Valuation date 1 January 2011

• Completion expected in Q3 or Q4

• Estimated accounting impact: USD 50 mill gain

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• Agreement to sell 50% of Siri to DONG Energy for USD 13 million, effective 1 July 2011

• Ownership in Nini, Nini East and Cecilie remains unchanged and unaffected

• Noreco will not carry any historical or future cost related to permanent repair solution for Siri

• Noreco retains all existing and future insurance claims related to the damage to the Siri caisson

• Noreco keeps tax balances of USD 26 million

• Noreco retains until 30 August the right to sell to another buyer at higher price

• Est. accounting impact: USD 60 mill loss

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Siri situation resolved

Brage and Hyme divested

• Brage

– Q1-2011 production 2,800 boe/day

– 6.0 mmboe net reserves per 31.12.2010

– Sold for USD 75 million

• Hyme

– Discovered 2009, PDO 2011, first oil 2013

– 4.2 mmboe net reserves

– NOK ~800 million net capex

– Sold for USD 10 million

– Noreco may receive additional compensation if PDO is submitted for other discoveries in the license within six years

• Transaction completed in July 2011 23

Brynhild (Nemo)Noreco 20%

• PDO submitted early August

• Subsea tie-back of 3 wells to Shell-operated Pierce FPSO in UK

• PDO approval and contract awards expected in September

• First oil late 2013

• Noreco has option to sell its share

• Noreco will evaluate its position and decide whether to invest or exit

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Income statementSecond quarter 2011

NOK million Q2-11 Q1-11 Q2-10

Total revenues 396 403 361

Production expenses 87 120 101

Exploration and evaluation expenses 86 202 98

Payroll and other operating expenses 74 92 59

EBITDA 149 (11) 103

Depreciation 97 99 135

EBIT 53 (110) (32)

Net financial items (125) (111) (115)

EBT (73) (221) (148)

Tax (64) 83 (107)

Net result continued operations (9) (304) (40)

Profit/(loss) discontinued operations (149) 9 34

Net result for the period (158) (295) (6)

1) Reversal of USD 12 million in costs for Siri caisson previously charged by operator, of which USD 9 million relates to Q2 2011

1)

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Balance sheet30 June 2011

NOK million 30.06.11 31.03.11 31.12.10

Assets

Fixed assets 9 480 10 400 9 611

Receivables 1 917 1 581 2 109

Cash 819 490 892

Total assets 12 216 12 471 12 613

Equity and liabilities

Total equity 3 165 3 335 3 675

Total long-term liabilities 7 764 7 908 7 010

Total current liabilities 1 286 1 228 1 928

Total liabilities 9 051 9 136 8 938

Total equity and liabilities 12 216 12 471 12 613

1) Reversal of net book values on Brage of NOK 561 million – consideration reflected as receivables2) Hyme reclassified as asset and liability held for sale – expected gain of NOK 23 million in Q33) Bond loan NOR06/NOR07 issued with a positive effect on cash

1)

3)

2)

27Net interest-bearing debt = Gross interest-bearing debt less cash and cash equivalents less tax receivables. Debt/equity ratio = Net interest-bearing debt divided by Total equity.

NOK million Debt/equity

Financial position

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Interest bearing debt & equity

NOK million Q2-2011 Q1-2011 Q4-2010 Q3-2010 Q2-2010

BondsNOR03, NOR04, NOR05, ALXO02

3,253 2,662 2,812 2,270 2,267

Reserve Based Loan$320m facility

1,025$190

1,157$210

1,226$216

1,331$235

1,500$235

Convertible bond 211 208 206 204 201

EquityBook equity/Total assets

3,16525.9%

3,33526.7%

3,67529.1%

3,82630.4%

3,73930.2%

Gearing ratio 1NIBD / adj. EBITDAx (NOR03/04)

3.3 2.7 2.5 2.5 3.7

Gearing ratio 2NIBD / adj. EBITDAx (NOR05/06/07)

3.4 3.1 3.0 3.0 3.5

Note: Exploration financing and receivables not included

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Interest-bearing debt overviewBond loan fixed(NOR04)

Bond loan floating(NOR03)

Senior unsecured convertible bond

Bond loan floating (NOR05)

Bond loan fixed(NOR06) and floating (NOR07)

Reserve-based bank facility

Exploration loan

Name of issuer Noreco Noreco Noreco Noreco Noreco Altinex Oil Denmark A/S

Noreco

Security 1. priority pledge in the issuer’s shares(100%) in each ofthe subsidiaries*

1. priority pledge in the issuer’s shares (100%) in each of the subsidiaries*

No No 1. priority pledge in the issuer’s share ofOselvar field

Pledge in licenses and shares

Pledge in tax claimand selectedlicenses

Lender Bond holders Bond holders Bond holders Bond holders Bond holders Syndicate lead by BNP Paribas

SR-Bank, DnBNor, BNP Paribas, ABN AMRO, SEB Enskilda

Margin, fixed or floating

Fixed, 12.9% 3m NIBOR + 7.9% Fixed, 6% 3m NIBOR + 8.0% 3m NIBOR + 6.0%

Fixed, 10.25%

LIBOR + 2.5% NIBOR + 3%

Currency NOK NOK NOK NOK NOK USD NOK

Amount at issue, million

1,250 750 440 700 325 floating

275 fixed

320 1,550

Amount outstanding, million

1,250 750 219 700 600 190 836

Debt structure Bullet Bullet Bullet Amortising Amortising Bullet

Main covenants - Dividend protection

- Book equity ratio minimum 25%

- Gearing ratio < 5

- Dividend protection

- Book equity ratio minimum 25%

- Gearing ratio < 5

- Dividend protection

- Book equity ratio minimum 25%

- Gearing ratio < 5

- Dividend protection

- Book equity ratio minimum 25%

- Gearing ratio < 5

Calculation of borrowing base

70% of eligible cost

Use of proceeds General purpose General purpose General purpose Oselvar and general purpose

General purpose/ investments

Exploration NCS

Issue date and maturity

Issued: 20.11.2009

Maturiity: 20.11.2014

Issued: 20.11.2009

Maturiity: 20.11.2012

Issued: 11.05.2007

Maturiity: 11.05.2012

Issued: 06.12.2010

Maturiity: 06.12.2013

Issued: 27.04.2011

Maturiity: 27.04.2016

Issued: 16..06.2006

Maturiity: 31.12.2014

Issued: 01.02.2008

Maturiity: 31.12.2013

* Altinex ASA and Siri Holding Ltd.

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Put options1,000 barrels

• Noreco is using put options to protect cash flow from oil price downside

• 24 months rolling forward programme

• Asian type puts based on monthly average Brent oil price

Dynamic hedging programme

0

50

100

150

200

250

300

Q32011

Q42011

Q12012

Q22012

Q32012

Q42012

Q12013

Q22013

Q32013

$65 strike $75 strike

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Q2-2011 Q1-2011 Q4-2010 Q3-2010 Q2-2010

Production (boe/day) 7,164 7,538 7,208 7,365 8,430

Realised price ($/boe) 111.7 103.9 84.7 75.2 75.6

Realised price (NOK/boe) 607 595 502 464 470

Production cost ($/boe) 24.4 30.6 29.3 28.1 21.1

Depreciation and amortisation ($/boe)

27.3 25.2 29.4 29.0 28.3

P&L analysisContinued operations

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Exploration and investment activity

NOK million Q2-2011 Q1-2011 Q4-2010 Q3-2010 Q2-2010

Exploration expenses 86 202 301 88 98

Exploration capitalized 14 22 -63 117 38

Investments in fields 249 240 113 173 138

Total 349 464 351 378 274

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Reserves development

• 2P reserves estimate end 2010:

– 45.8 mmboe

• Reserve replacement ratio:

– 2010: 300%

– 2009: 222%

– 2008: 145%

• Main additions 2010:

– Huntington

– South Arne phase III

0

10

20

30

40

50

2007 2008 2009 2010

mill

ion

boe

Reserves Produced Additions

Contingent resources ~130 mmboe

Risked exploration resources~575 mmboe

2P reserves – 45.8 mmboe

Development in 2P reservesmmboe

Total resource base

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Reserves As of 31.12.2010

Total reserves

Liquids(mill bbl)

Gas(bscf)

Gross mill boe

Interest%

Netmill boe

Liquids(mill bbl)

Gas(bscf)

Gross mill boe

Interest%

Netmill boe

Siri 6.1 - 6.1 50 3.0 11.5 - 11.5 50 5.8 Nini 3.8 - 3.8 30 1.1 5.5 - 5.5 30 1.7 Nini East 10.1 - 10.1 30 3.0 14.4 - 14.4 30 4.3 Cecilie 1.0 - 1.0 61 0.6 2.0 - 2.0 61 1.2 Lulita 1.7 7.1 3.0 28.2 0.8 2.1 8.4 3.6 28.2 1.0 South Arne 88.8 104.6 107.5 6.56 7.1 110.9 126.3 133.4 6.56 8.8 Brage Unit 17.7 15.5 20.5 12.26 2.5 28.4 31.7 34.1 12.26 4.2 Brage Sognefjord 7.9 - 7.9 13.2 1.0 13.8 - 13.8 13.2 1.8 Enoch 5.1 0.2 5.1 4.36 0.2 7.3 0.6 7.4 4.36 0.3 Oselvar 17.0 97.9 34.4 15 5.2 25.1 160.8 53.9 15 8.1 Huntington 24.5 10.9 26.4 20 5.3 39.6 20.5 43.3 20 8.7 Total 30.0 45.8

1P 2P

Source: Noreco Annual Statement of Reserves 2010

Noreco reports its own estimates of reserves on an annual basis. The estimates are made by senior staffwith extensive experience in reserves estimation. Quality control of the methodology and results is part ofthe company’s internal reserves estimation procedures. Economic limit tests have been performed basedon a market forward oil price as of end 2010 as well as the company’s best assumptions of futureoperating costs.

In addition Noreco uses an external company (DeGolyer and MacNaughton) to perform an independentreserves analysis. Both the in-house and the independent reserves estimation follow SPE-PRMS.Noreco has reserves from a total of 10 fields. More general information on the fields is available onNoreco’s homepage www.noreco.com and in the company’s annual reports.

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ShareholdersTop 20 shareholders as of 29 August 2011

Shareholder Shares

LYSE ENERGI AS 23 647 460 9,7 %

IKM INDUSTRI-INVEST AS 18 746 323 7,7 %

CREDIT SUISSE SECURITIES (USA) LLC 10 090 957 4,1 %

FOLKETRYGDFONDET 9 048 654 3,7 %

EUROCLEAR BANK S.A./N.V. ('BA') 8 782 140 3,6 %

BANK OF NEW YORK MELLON SA/NV 8 347 496 3,4 %

AWILCO INVEST AS - PANT 8 300 000 3,4 %

UBS AG, LONDON BRANCH 8 127 263 3,3 %

OM HOLDING AS 8 000 000 3,3 %

TEIGEN FRODE 5 400 000 2,2 %

ODIN OFFSHORE 5 000 000 2,1 %

SKAGEN VEKST 4 852 074 2,0 %

SABARO INVESTMENTS LTD 3 950 000 1,6 %

GOLDMAN SACHS INT. - EQUITY - 3 315 870 1,4 %

MORGAN STANLEY & CO INTERNAT. PLC 3 314 515 1,4 %

DNB NOR SMB VPF 2 675 000 1,1 %

AVANSE NORDEN,NOR VPF 2 411 925 1,0 %

DNB NOR NORDEN (III) VPF 2 218 334 0,9 %

KOMMUNAL LANDSPENSJONSKASSE 2 196 341 0,9 %

HSBC BANK PLC 2 177 004 0,9 %

Total number owned by top 20 140 601 356 57,7 %

Total numbers of shares 243 842 914

% of total

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