Noreco acquires Talisman Oil Denmark Limited
STAVANGER, Norway, 25 April: Norwegian Energy Company ASA (OSE:NOR), Noreco has entered into a Share Sale Agreement with Paladin Resources Limited (whose ultimate parent company is Talisman Energy Inc) to acquire all the shares in Talisman Oil Denmark Limited for a consideration of 83 million US$. The transaction includes the producing Siri field in the Danish sector of the North Sea, and will increase Noreco's daily production by more than 20% and add 4.35 million barrels of oil to the company's proven and probable (2P) reserves.
- This transaction is another demonstration of our strategic intent to build a leading independent oil and gas company in the North Sea. We see significant upside in the Siri field, and have plans for further consolidation in the North Sea. The acquisition will also strengthen the company's cash flow and balance sheet, says Scott Kerr, CEO of Noreco.
Talisman Oil Denmark Limited's interest in the Danish sector of the North Sea includes the entire 30% non-operated interest in License 6/95, which contains the producing Siri field. Noreco owns a 20% interest in the Siri field, and will after the transaction will hold a 50% share in the field. The Siri platform is an important hub for other fields and discoveries in the area. Noreco holds significant interests in the area, including the Cecilie, Nini, Nini East and Rau fields, and this transaction will create synergies for Noreco in the area.
The effective date of the transaction is 1 January 2008, and the completion of the acquisition is expected to take place by June 2008, and will be subject to the fulfilment of usual government consents.
Company presentation
An updated company presentation, including the acquisition of Talisman Oil Denmark Limited, is attached.
Siri field information
Noreco acquired a 20% interest in the Siri field through it's acquisition of Altinex ASA in 2007. The Siri field is located in the Danish part of the North Sea, and started production in 1999. Dong is the operator and holds a 50% share in the field. The Siri platform is an integrated production and accommodation platform placed on top of an oil storage tank resting on the seabed at a water depth of approximately 65 meters. The oil is produced to the seabed storage tank and via a floating loading buoy transported by shuttle tanker to refineries in North West Europe. The reservoir is produced with water injection and limited gas injection to improve oil recovery. The Siri platform is the host for processing and transport of products from the Nini and Cecilie fields. The average production from the Siri field in 2007 was approximately 8 600 boed gross. An infill drilling campaign is ongoing to optimize production. The oil discovery Sofie as well as exploration prospectivity has been identified around the field. The Paleocene Siri West prospect is located immediately west of the Siri field, and is planned to be drilled in 2008.
For further information, please contact:
Scott Kerr, CEO (+47 992 83 890)
Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856)
Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856)