Noreco Capital Markets Day 2010: Prepared for continued growth
Stavanger, 28 January 2010: Noreco (OSE: NOR) enters 2010 with a solid basis for continued growth in production and reserves. The company has an exciting portfolio of exploration opportunities which will be tested over the coming years, and is involved in several development projects that will substantially increase oil and gas production. An improved capital structure and a growing portfolio of producing fields provide a sound financial platform for realizing these growth opportunities.
"Noreco's business model has been through a tough test in 2009, a test which I am proud to say we have passed. We have continued to deliver exploration success, we managed to refinance and strengthen our capital base, our oil price hedging and extensive insurance program proved useful, and maybe most importantly we have been able to further expand our staff of highly competent people," says Noreco's CEO Scott Kerr.
The Norwegian independent E&P company remains optimistic about the long-term prospects for oil and energy.
"Global oil reserves are declining, and there is a constant need to find and develop new oil fields to meet a demand which we believe will continue to grow as the world economy moves ahead," Kerr says.
Noreco's Capital Markets Day includes the following highlights:
· Estimated 2010 production is 13-14,000 barrels of oil equivalents per day. This estimate reflects normal regularity and is adjusted for the fact that the Siri area fields were not restarted until ultimo January.
· Noreco plans to participate in six exploration and appraisal wells on the Norwegian Continental Shelf in 2010. The total exploration budget amounts to around NOK 1.1 billion (pre tax).
· The company's investment program for 2010 amounts to around NOK 700 million, equally split between new field developments and existing fields.
· Proven and probable oil and gas reserves (2P) per end-2009 are estimated to 37 million barrels of oil equivalents (boe), up from 32.6 million boe in 2008, representing a reserve replacement ratio of around 200%. The main addition to the reserve base in 2009 was the Oselvar field.
· Noreco provides a comprehensive overview of its exploration portfolio, including a detailed break-down of prospective resources per licence which now totals 558 million boe, an increase of 24% from the previous estimate.
Capital Markets Day
Noreco's presentation and supplementary analytical information is attached and may be downloaded from www.noreco.com. The presentations will start at 10.30 CET at the Museum of Archeology, Peder Klows gt 30A in Stavanger. CEO Scott Kerr, COO Rune Martinsen, CFO Jan Nagell,and VP Strategy & Investor Relations Einar Gjelsvik will represent the company. The presentation can also be followed by webcast on www.noreco.com both live and in replay version.
Investor contacts:
Name: Einar Gjelsvik
Phone: +47 992 83 856
Email: einar.gjelsvik@noreco.com
Name: Kjetil Bakken
Phone: +47 918 89 889
Email: kjetil.bakken@noreco.com
Press contact:
Name: Jan Petter Stiff
Phone: +47 995 13 891
Email: stiff@crux.no