Noreco set for value creation
Stavanger, 22 October, 2009: Norwegian Energy Company ASA (Noreco - OSE:NOR), The oil company Noreco today presents its third quarter results, with revenues of NOK 355 million and a net result of NOK - 134 million. The recent NOK 1.2 billion equity issue and NOK 2 billion bond refinancing place Noreco in a strong position to create value from its portfolio.
The production of 9 725 barrels per day was realised at 65 $/barrel, giving revenue of NOK 355 million for the quarter. The operational result (EBITDA) was NOK -51 million and the net result was NOK -134 million.
-The production and the results in the third quarter were negatively impacted by the shut down of the Siri field in Denmark. The Siri partnership is now implementing a temporary solution to restart production from the field, says Scott Kerr, CEO in Noreco.
2009 production is expected to be in the range 10,500 - 11,000 barrels per day, as a result of the shut down of Siri.
Strengthened financial position
-The successful NOK 2 billion bond refinancing announced earlier this week and our recent NOK 1.2 billion equity issue significantly improves our financial capacity and gives us a solid foundation for value creation from our asset portfolio, says Scott Kerr.
Noreco has a portfolio of seven producing fields, four ongoing developments, 20 discoveries and over 50 exploration licenses.
Near term production is set to increase from new wells and resumed production. Noreco's four ongoing developments will add more than 15,000 barrels per day to the company's production, and other discoveries will add further production and reserves. In addition, 6-10 exploration wells per year provide additional value upside.
Third quarter report and presentation
The third quarter report and presentation is attached. These are also available at www.oslobors.no and www.noreco.com. Noreco will present the results for third quarter 2009 today at 09:00 Norwegian time. The presentation will take place at Felix Kurs og Konferansesenter, Bryggetorget 3, Oslo, CEO Scott Kerr, VP Strategy & Investor Relations Einar Gjelsvik and CFO Jan Nagell will represent the company. The presentation can also be followed by webcast on Noreco's web page www.noreco.com or at www.oslobors.no/webcast, both live and in archived version.
Scott Kerr, CEO, +47 992 83 890
Einar Gjelsvik, Vice President Strategy & Investor Relations, +47 992 83 856