Today StatoilHydro has announced about the acquisition of 32,5%interest in Chesapeake's Marcellus shale gas acreage covering 1,77macres in the Appalachia region. StatoilHydro will pay USD 1 250m incash and further USD 2 125m in the form of a 75% carry on drilling andcompletion of wells during the period 2009 to 2012. Chesapeak willremain holdings in 67,5% of 1,77m acres or net 1,19m acres net.



Ourcalculations indicate that total price StatoilHydro will pay for 32,5%stake is approx. USD 2,45bn (including Chesapeak's part of drillingcosts to be covered). This converts to approx USD 4 270 or NOK 28 800per acre.



Norse Energy

We know that Norse Energyhas a total 175 000 acres in Appalachia region. If we apply the priceChesapeak receive from Statoil, the value of NEC's acreage is worth USD747m or NOK 14,3 per share. We would like to remind that we have beenestimating the potential in the Appalachia region of NOK 17 per sharefor Norse Energy. Thus, the StatoilHydro-Chesapeak deal more or lesssupports our valuation.



Questerre Energy

QEC havethe net acreage of 336 440 in Quebec and 11 200 in British Colombia. Itis not very correct to apply the same calculation to Questerre's assetsas it is in different region and the potential could differ. However,the geology in the Quebec province is reported to be similar to the onein the New York state. Hence, applying the price Chesapeak receive fromStatoil, the value of Questerre's shale gas assets are worth approx.USD 1,48bn or NOK 40 per share and also supports our view that thepotential of QEC shale gas asset in Quebec is NOK 35 per share.



Transeuro Energy

Transeurohas a net of 11 200 acres (17,5 square miles) in British Colombia.However, we cannot apply the same numbers onto TSU's assets, becauseresource potential in Liard shale (British Colombia) is estimated to be1 Tcf of natural gas per square mile, while Marcellus potential isestimated to ca 50 Bcf per square mile (according NEC). Thus, the priceshould be 20 times higher for land in British Colombia than in the NewYork state. With such numbers TSU's 11 200 acres should be worth USD950m or NOK 31 per share. This number more than supports our estimatedpotential of NOK 12 per share.