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-Norwegian Rocksource to divest of US onshore gas fields.

NORDIC BUSINESS REPORT-November 11, 2010--Norwegian Rocksource to divest of US onshore gas fields(C)2010 M2 COMMUNICATIONS

11 November 2010 - Norwegian oil exploration and production company Rocksource ASA (OSL: RGT) said today that it has agreed to sell its US onshore gas fields for USD9.35m, as they are considered non-core assets.

The name of the buyer was not disclosed.

The deal, which is subject to certain conditions including a final sales and purchase agreement, is effective as of 1 November 2010.

The company has a NOK200m bond, maturing in May 2012, which has security in these assets. The sale of the assets will be conditional on the bondholders accepting to release pledge of security. As a compensation, Rocksource will propose to redeem about 7% of the outstanding bond, equivalent to 25% of the gross proceeds from the sale.

Thereby, Rocksource expects a gain from the sale of some USD600,000.

Rocksource will call a bondholders meeting on or about 19 November 2010. The company has already received pre-acceptance from some of the larger bondholders.

The US onshore assets consist of fields in San Jacinto and Polk Counties, Texas and are owned by Rocksource's subsidiaries Rocksource Energy Corporation (REC) and Sandhawk Energy LLC (SHK).

Due to declining production coupled with a significant drop in US gas prices, these fields have become increasingly marginal to Rocksource and their sale will allow Rocksource to focus to its core business, including drilling high potential offshore exploration wells.

(EUR1 = USD1.4; EUR1 = NOK8.1)

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Publication:Nordic Business Report
Date:Nov 11, 2010
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