The production is in line with Noreco's production guidance of an average daily production of 14,000 barrels of oil equivalents for 2009.

 

At the South Arne field, well intervention has taken place in May, causing temporary shut-in of producing wells on the field.  On the Brage field, gas injection into the Sognefjord reservoir reduced the gas export from the Brage field, but will contribute to increased oil production later in the year. Water injection at Brage is planned to start in July to secure high production from the Bowmore well. Drilling is ongoing at the Nini field to increase the production from the field. The Nini East development is progressing according to plan, and the installation of the Nini East platform is scheduled to take place next week. Nini East will add in excess of 3000 barrels per day to Noreco's production when the field starts production in the second half of 2009.

 

Planned, annual maintenance is scheduled in June at the Siri field (5 days) and Brage (14 days), as per the assumptions in the production guidance.

 

The achieved price in May was USD 61 per barrel of oil equivalent (boe). The net achieved price reflects Noreco's oil price put options at USD 50 and 75 per barrel as well as adjustments for inventory and NGL and gas prices.

 

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

 

Scott Kerr, CEO (+47 992 83 890)

Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856)