STOCKS NEWS EUROPE-Norse Energy down after fission plan

Shares in Norwegian oil and gas producer Norse Energy Corp. (NEC.OL) fall 6.3 percent following its third-quarter report, as the company announces plans to split into two listed companies.

Analyst Teodor Nilsen at Argo Securities says the plans could come as a result of Norse not finding buyers for some assets it had planned to divest, such as a 10 percent stake in the Manati gas field offshore Brazil.

"The asset side of the balance sheet looks fine, but they have big challenges on the financing side with much debt maturing in 2010 and 2011," Nilsen says, adding Norse also plans to spend some $40 million next year for drilling in the U.S.

"The math doesn't add up unless they postpone repayment of debt or issue shares," Nilsen says.

(for the company statements, click here )

Reuters Messaging rm://richard.solem.reuters.com@reuters.net