June 2010 production

Stavanger, 8 July 2010, Norwegian Energy Company ASA (Noreco, OSE:NOR): Noreco's oil and gas production in June 2010 was 11,825 barrels of oil equivalents (boe) per day. Net realized oil price was USD 70.50 per boe after adjustments for oil put options, inventory and NGL and gas prices. For the second quarter in total, production was 13,125 boe/day and realized price was USD 74.75 per boe.

Total production from the Siri area in June was 13,875 boe/day (5,150 boe/day net to Noreco). This was impacted by the planned maintenance stop which took four days. Following the replacement of a component in a centrifugal compressor on Siri, flare gas levels and lift gas availability has improved. A final upgrade of the compressor is scheduled for Q4. The SCB-1 well on the Siri field is still shut in pending repair of a subsea safety valve. The Siri field production was 3,975 boe/day (2,000 net). Nini East delivered 7,250 boe/day (2,175 net). Nini produced 1,975 boe/day (600 net), while Cecilie production was 650 boe/day (400 net).

Brage produced 40,150 boe/day (4,925 net) with high regularity.

South Arne production was 20,600 boe/day (1,350 net), somewhat down from May due to postponed well interventions during the ongoing drilling of new production wells.

Net production to Noreco from the fields Enoch and Lulita was 125 and 250 boe/day respectively.

Production volumes and prices are preliminary and are subject to adjustments, including final allocations between fields, quality adjustments and prices.

Other Q2 2010 events
The company is currently involved in one exploration well, the Zidane-1, which started in June and is expected to take approximately three months. The costs related to ongoing exploration wells are capitalized in the balance sheet. No other exploration drilling activity took place in Q2. However, a significant part of the company's seismic acquisitions for the year took place in Q2. The associated costs are classified as exploration expenses in the income statement.

In June the company repaid a NOK 100 million bond loan (the ALX01), of which NOK 50 million was held internally.


For further information, please contact:
Scott Kerr, CEO (+47 99 28 38 90)
Kjetil Bakken, Investor Relations Manager (+47 91 889 889)

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