Good first quarter for Noreco
Stavanger, 20 May 2014: Norwegian Energy Company ASA (Noreco) today presents good financial results for the first quarter 2014. Higher production resulted in increased revenues and NOK 166 million in operating profits before depreciations and amortisations (EBITDA). Net profit after depreciation, amortisation, financial items and tax amounted to NOK 64 million negative.
The operating profit is also partly a result of low exploration costs in the first quarter 2014. The exploration activities in the second quarter will increase. Noreco is the operator for the Verdande well, which was spudded in the Norwegian Sea in April. The company is partner with Lundin, which is currently about to spud an appraisal well at the Gohta discovery in the Barents Sea.
“Both wells are exciting. We are approaching the presumed reservoir at Verdande and expect that the results from the well will be available within a month. The Gohta discovery was the largest on the Norwegian Continental Shelf last year. The first appraisal will now assess the extent of the field to the west and the reservoir properties in this part of the discovery,” says Svein Arild Killingland, CEO of Noreco.
“In parallel we are systematically maturing our other licences with encouraging results. We have identified an interesting prospect in PL 616 far south in the Norwegian part of the North Sea. This will most likely be drilled in 2015. We also see interesting potential in deeper layers under the Huntington field on the UK shelf,” says Killingland.
Noreco’s total production of oil and gas was satisfactory in the first quarter, and good in February and March when both the Huntington field and the Nini field in Denmark recorded steady performance.
“In April and May we were again reminded that unforeseen events may impact our production and revenue stream. The Huntington field was closed for a month from the middle of April and the Oselvar field was closed for a week. In May, the Nini field will be shut-in for a few days, to allow for planned repair at the Siri platform nearby”, Killingland adds.
Contact:
Ørjan Gjerde, CFO (0047 900 35 738)
For further information and details on Noreco’s quarterly accounts, please see the attached report for the first quarter 2014. The report and presentation are also available at www.newsweb.no and www.noreco.com.
Noreco will present the results for first quarter 2014 today at 08.30 Norwegian time. The presentation will take place at Felix Kurs og Konferansesenter, Bryggetorget 3, Oslo. The presentation can also be followed by webcast on Noreco’s web page www.noreco.com.
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