Noreco announces completion of Oselvar transaction
Oslo 25 November, 2015: Reference is made to the announcement of 1 July 2015, concerning the divesture by Noreco Norway AS (Noreco) of its 15 per cent participating interests in the Norwegian shelf licenses PL274 and PL 274 CS, which includes the Oselvar field with associated tax balances, to CapeOmega.
Transfer of the licenses has now been approved by the Norwegian authorities, and completion of the transaction has occurred today. As previously reported, the transaction is made with an effective date as of 1 January 2015. The total consideration to Noreco is NOK 201 million and the net proceeds, expected to be approx. NOK 175 million (after, but subject to final (if any) pro & contra adjustments), will be transferred to a proceeds account and used to pay the NOR 06 bondholders in accordance with the terms of NOR06 bond.
The completion of the transaction will not have any effect on the net results as it has already been accounted for in previous quarters.
About Norwegian Energy Company ASA
Noreco is an independent Norwegian oil company. Noreco was incorporated in 2005 and operates in Norway, Denmark and United Kingdom. The company’s stock is listed on the Oslo Børs (ticker NOR). For further information, please visit: www.noreco.com.