The drilling results from Gita are very promising. The resource potential is substantial at 600 million barrels of oil equivalents. Noreco`s interest in the discovery is twelve percent. 

 

Q1 2009 results

Noreco recorded first quarter operating revenue of NOK 469 million, a seven percent increase from first quarter 2008. The operational result (EBITDA) was NOK 116 million and the net result was negative NOK 46 million. The company had a cash position of NOK 562 at the end of the first quarter, and 406 million in financial instruments.

 

Noreco's production in the first quarter 2009 was in line with the guidance at 13,625 barrels of oil equivalents, an increase of 43 percent from first quarter 2008. Noreco expects a significant increase in production when the Nini East Field starts up production in the second half of the year.  In the first quarter Noreco has added 7.8 million barrels to its reserve base, an increase of 24 percent compared to the reserves at the beginning of the year.

 

Noreco has during the first quarter 2009 secured long term financing through refinancing of the outstanding NOK 2,240 million bond. By this refinancing Noreco has strengthened its financial position considerably.

 

The first quarter report and presentation is attached. These are also available at www.oslobors.no and www.noreco.com. Noreco will present the results for first quarter 2009 today at 09:00 Norwegian time. The presentation will take place at Felix Konferansesenter, Bryggetorget 3, Oslo. 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 Investor Relations, +47 992 83 856

 

www.noreco.com