CORRECTION: Production August 2013
Stavanger, 9 September 2013: This is a correction of today's release at 09:11 CEST. The reason for the correction is: Wrong unit for sales gas in Huntington paragraph in Norwegian version. As a result of several unrelated and temporary technical issues, which have been reported before, average production for Norwegian Energy Company (Noreco) in August 2013 was only 1 559 barrels of oil equivalents (boe) per day, compared to 3 874 boe per day in July. Net realised price was USD 91.9 per boe adjusted for inventory.
Production per field in boe per day, August 2013:
Huntington – 1 306
Nini East – 0
Cecilie – 0
Nini – 0
Oselvar – 253
Lulita – 0
Enoch – 0
August output from the Huntington field was constrained due to issues relating to venting of the cargo tanks during low wind speed and the pre-emptive production restrictions taken for safety reasons. At the beginning of September, the hydrocarbon blanketing system was brought into service. This replaces the back-up cargo venting system and is not subject to wind speed restrictions. In parallel, the repair of the ‘A’ compressor was completed.
According to the operator, E.ON E&P, production rates at the Huntington field have for the past few days been averaging 30,000 barrels of oil per day and 23 mmscfd of export gas, and output is expected to remain around these levels going forward.. This equals approximately 6,800 boe per day to Noreco. Noreco views this as further indication that plateau production from the field can be higher than previously anticipated.
The Oselvar field came back on stream on 3 August after planned maintenance and unforeseen delays at the Ula host platform through June and July. On 8 August Oselvar was shut down again, due to a defect gas compressor at Ula. The gas compressor has been replaced and production resumed on 7September.
As previously reported the Nini, Nini East and Cecilie fields were shut down in July due to technical issues at the Siri field host platform. The operator DONG has designed an alternative solution, which would allow production from Noreco’s fields to bypass the damaged part of the platform. This solution is still awaiting approval from the authorities, and the operator has not yet provided an estimate of when production can resume.
The Lulita field continues to be shut in due to an unsuccessful repair of an emergency shutdown valve in the Harald gas export pipeline. The operator has indicated that production is likely to restart in this month.
The Enoch field is still shut in pending maintenance work.
Production volumes and prices are preliminary and subject to adjustments, including final allocations between fields, quality adjustments and prices.
Contact:
Ørjan Gjerde, CFO (0047 900 35 738)
This information is subject of the disclosure requirements pursuant to section of 5-12 of the Norwegian Securities Trading Act
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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 license rounds, successful exploration and acquisitions. Noreco operates in Norway, Denmark and United Kingdom, and employs around 70 oil and gas professionals. Noreco is listed on the Oslo Børs (ticker NOR).
For further information, please visit: www.noreco.com