Farm-down of exploration licenses
Stavanger, 27 February, 2008: Norwegian Energy Company ASA (Noreco, OSE:NOR), Noreco has entered into an agreement to farm-down in exploration licenses PL271 and PL302 in Norway. Faroe Petroleum will earn a 15% in the license by carrying Noreco's costs associated with drilling of the upcoming Yoda well on the license. Noreco's interest in the licenses after the transaction will be 15%.
Noreco has today signed an agreement with Faroe Petroleum to farm-out of exploration licenses PL271 and PL302 on the Norwegian Continental Shelf. Faroe Petroleum will earn a 15% interest in the licenses by carrying Noreco's part of the costs up to the drilling budget level associated with the Yoda well shortly to be drilled by the operator StatoilHydro with the rig Maersk Giant. Completion of the transaction is pending customary approvals.
Noreco acquired a 40% interest in licenses PL271 and PL302 from Dong in 2006. Noreco subsequently sold 10% of the licenses to Talisman against a 17.5% interest in PL347 and PL348 in the Norwegian Sea. On PL348, the Galtvort exploration well will be spudded within a few weeks.
- This transaction is a great example of how Noreco creates value through active portfolio management. A license acquisition two years ago have created two very exiting exploration opportunities to be drilled in the next few weeks, says CEO Scott Kerr.
An overview of Noreco's portfolio following this transaction and the recent 9 license awards in the APA round in Norway.
For further information, please contact:
Scott Kerr, CEO (+47 992 83 890)
Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856)