Noreco outlines plans for 2008
Stavanger, 14 February, 2008: Norwegian Energy Company ASA (Noreco, OSE:NOR), The Norwegian based oil company Noreco presents its plans for 2008 today. Revenues from production has been protected through put options at 75 $ per barrel to April 2009. Funding of the full activity set is in place.
- We are very exited about our work program for 2008. In 2007 we established an extensive and balanced North Sea portfolio through aggressive inorganic growth. In 2008 we will continue to grow through maturation and management of our portfolio, says CEO Scott Kerr.
The 2008 work program will be funded from cash in hand, existing bank facilities and operating cash flow. The oil price is protected through put options at 75 $/bbl for the majority of the expected production volumes to April 2009.
Noreco's plans for 2008 are as follows:
Optimize production
Production for 2008 is expected to be in the range 9000 - 9500 barrels of oil equivalents per day. Capital expenditure in the producing fields, including 6 infill wells, is expected to be approximately 350 MNOK for the year.
Progress resources from prospect to production
Noreco plans to drill 12 exploration and appraisal wells, the majority of which are in Norway. Two plans for developments will be submitted, and development of Nini East is planned to commence. The budget for this work program is in the order of 750 MNOK.
Noreco plans to drill 12 exploration and appraisal wells, the majority of which are in Norway. Two plans for developments will be submitted, and development of Nini East is planned to commence. The budget for this work program is in the order of 750 MNOK.
Grow through license rounds and acquisitions
Noreco will participate in 3 license rounds this year: 20th round and APA2008 in Norway and the 25th round in UK, and will mature the 9 licenses recently awarded in the APA2007 round. In addition, the company will actively manage the portfolio. Costs are budgeted at approximately 100 MNOK, primarily exploration cost in Norway.
Drilling rigs have been secured for all planned 2008 drilling activities.
Further details are available in the attached presentation of the 4Q 2007 results.
Noreco will hold a presentation Thursday 14 February at 9 am (Norwegian time) at Felix konferansesenter, Bryggetorget 3, Oslo. The presentation can also be viewed as a video webcast. The web cast will be available at
and at www.oslobors.no/webcast both live and in an archived version.
For further information, please contact:
Scott Kerr, CEO (+47 992 83 890)
Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856)