Offshore staff

STAVANGER, Norway -- Norwegian Energy Co. AS has agreed to acquire 20% interest in PL 148, and 17.5% interest in both PL 347 and PL 348 on the Norwegian continental shelf from Talisman. As part of the agreement, Noreco will transfer 10% interst in PL 271 and PL 302 to Talisman.

PL 148 has the 7/7-2 oil discovery operated by Lundin Petroleum. PL 347 and PL 348 are operated by Norsk Hydro. PL 348 has the Tau discovery.

"The agreement with Talisman adds another two discoveries and a number of exploration prospects and leads to our portfolio," said Scott Kerr managing director of Noreco, "which now counts a total of 10 licenses. We are excited to be part of four wells over the next two years, and are well positioned to increase the activity level further."

9/7/06