Noreco reports first quarter 2012 results

Stavanger, 24 May 2012: Norwegian Energy Company ASA (Noreco) today presents its first quarter 2012 results, with a negative EBITDA of NOK 185 million and a net loss of NOK 151 million.

«First quarter was characterised by high investment and exploration activity, while production was below normal. We are on track with the planned tripling of production in 2012, and we are under way with the most extensive exploration programme in the company's history», says Einar Gjelsvik, CEO in Noreco.

Noreco had revenues of NOK 177 million in the first quarter 2012, a reduction of 18 percent compared to first quarter 2011 for continued operations. The reduction was mainly driven by lower production from the company's Danish oil fields due to several weather-related shutdowns of the Siri platform.

Production in the quarter was 2,898 boe per day, down from 3,957 boe per day for the same period last year (excluding divested fields). The achieved average oil, gas and NGL prices adjusted for the cost and income from put options expiring in the quarter was USD 116 per boe, compared to USD 104 per boe in the first quarter 2011.

Production expenses were NOK 73 million, compared to NOK 56 million from the same quarter last year for continued operations and NOK 100 million in the fourth quarter of 2011.

Exploration costs amounted to NOK 223 million, reflecting two dry wells completed during the quarter and pre-drilling costs related to a dry well completed after the end of the quarter.

EBITDA (earnings before interest, tax, depreciation and amortisation) in first quarter 2012 amounted to a loss of NOK 185 million, compared to a loss of NOK 132 million in the first quarter 2011 from continued operations.

Net result for the quarter was a loss of NOK 151 million, comparable to a loss of NOK 371 million in the first quarter 2011 for continued operations.

Noreco was in compliance with all covenants under its loan agreements in the quarter.

The first quarter report and presentation are attached. The documents are also available for download at www.newsweb.no and www.noreco.com.

Noreco will present the results for first quarter 2012 today at 08:30 CET. The presentation will be held by CEO Einar Gjelsvik, and will take place at Shippingklubben, Haakon VII's gate 1, Oslo. The presentation can also be followed by webcast on Noreco's web page www.noreco.com both live and in archived version.

Contacts:
Einar Gjelsvik, CEO, +47 99 28 38 56
Kjetil Bakken, VP Investor Relations, +47 91 88 98 89

 
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

About Us

Noreco is a publicly owned company with focus on the oil, gas and offshore industry. The company's shares are listed on the Oslo Stock Exchange (ticker NOR). For further information, please visit: www.noreco.com.