Stavanger, 19 November 2014: Reference is made to stock exchange notices dated 1 and 15 October 2014, where Norwegian Energy Company ASA ("Noreco" or the "Company") informed of expected impairments of Oselvar and Huntington, and that negative developments in the performance of its producing fields made it unlikely that the Company would be able to comply with its cash covenants towards the end of 2014 and through 2015.
In light of the Company's current financial position and outlook as previously reported, it has been concluded that a deferral of bond instalments (NOK 560.8 million) and bond interest (NOK 84.6 million) due on 9 December 2014 will need to be obtained. The Company continues, together with its financial and legal advisers, to explore all available alternatives, and such deferral will allow the Company necessary time to diligently pursue any solutions which can create or preserve more values for all stakeholders.
As previously reported, Nordic Trustee, the trustee for the Company's bond loans, and SR-Bank, the lenders' representative in the Company's exploration loan facility, continue to be kept closely informed of the situation. The Company is currently in constructive discussions with the Nordic Trustee and the bondholders' advisors concerning a request for waiver of the December payments, and expects to dispatch summons to necessary bondholders' meetings by 24 November 2014. The Company is also in constructive discussions with SR-Bank as the exploration loan facility’s representative concerning a request for waiver of the requirement to submit by 1 December a 12 months funded business plan.
For most recent information on the Noreco group’s cash position and expected impairments related to the Huntington and Oselvar fields, please see the Company’s stock exchange notice of 15 October 2014.
This information is subject of the disclosure requirements pursuant to section of 5-12 of the Norwegian Securities Trading Act
About Norwegian Energy Company ASA
Noreco is an independent Norwegian oil company. The company's focus is to explore, develop and produce oil and gas in the North Sea region. Since incorporation in 2005, the company has grown through licensing rounds, exploration and acquisitions. Noreco operates in Norway, Denmark and United Kingdom, and employs 53 oil and gas professionals. Noreco is listed on the Oslo Børs (ticker NOR). For further information, please visit: www.noreco.com.