Noreco corrects accounting figures

Stavanger, 25 January 2013: Norwegian Energy Company ASA (Noreco) has previously announced that the Norwegian Financial Supervisory Authority has initiated a review of Noreco’s annual financial statements for 2011. Based on this review, Noreco has chosen to correct the accounting figures for 2011, which will also cause changes to the reported quarterly figures for 2012. These changes have no cash impact and are within the allowance which has previously been approved by the company’s bond holders, and will therefore have no consequences for the company’s financial position.

The changes to the accounting figures that are now being implemented relate to the treatment of goodwill arising from Noreco’s acquisition of Altinex in 2007 and the allocation of such goodwill to the assets sold in 2011, as well as the booking and valuation of suspended wells. In addition, the presentation of discontinued operations will be changed. These changes will impact both the annual accounting figures for 2011 and the quarterly accounting figures for 2011 and 2012. As per 31 December 2011 the corrections represent an aggregate reduction in equity of NOK 589 million. At the end of third quarter 2012, the aggregate reduction of equity is NOK 479 million compared to previously reported figures. A more detailed specification of the adjustments is attached, and is also available on www.newsweb.no and www.noreco.com.

Noreco will in connection with the release of its report for fourth quarter 2012 adjust the corresponding historical figures in accordance with IAS 8, and publish adjusted accounting statements for the quarters that are affected.

In October 2012 Noreco entered into an agreement with its bond holders whereby any write-downs of goodwill and suspended wells of up to NOK 600 million net of tax would be reversed when calculating equity ratio under the terms of the loan agreements. The total effect of the adjustments is within this allowance, and the adjustments will therefore not have consequences for the company’s covenants and financial position.

Contact:
Kjetil Bakken, Investor Relations Manager ( +47 91 889 889) 

This information is subject of the disclosure requirements pursuant to section of 5-12 of the Norwegian Securities Trading Act
 

About Norwegian Energy Company ASA

Noreco is an independent Norwegian oil company. The company’s focus is to explore, develop and produce oil and gas in the North Sea region. Since incorporation in 2005, the company has grown through license rounds, successful exploration and acquisitions. Noreco operates in Norway, Denmark and United Kingdom, and employs around 70 oil and gas professionals. Noreco is listed on the Oslo Børs (ticker NOR).

For further information, please visit: www.noreco.com