- We will continue to develop and explore new ways to extract resources from the ground and I am convinced that with Noreco's strategy we will continue to deliver great results, says CEO Scott Kerr in his statement in the annual report.

 

In their report, the Noreco Board of Directors describes the highlights of 2008 and the outlook for the company.

 

Noreco delivered strong operational and financial performance in 2008. The Company increased cash flow through the year, and had a reserve replacement ratio of 145 percent in 2008. The Company's drilling programme was very successful, with the first nine of eleven exploration and appraisal wells being successful. The Company continued to be active and opportunistic in the asset and M&A market. The Company's acquisition of Talisman Oil Denmark in June brought additional production to the Company at a low cost, and also enabled the Company to restructure it's capital base through issuance of equity, increased reserve based lending and repayment of bonds. Further growth was secured through further license acquisitions and a total of 15 license awards in the Norwegian APA license round and the 25th UK licensing round.

 

Following the good performance in 2008, the Company has established a sound platform for further growth. The new level of production and the put options ensures that the Company has significant cash flow from operations, even at lower oil prices.

 

Noreco plans to complete up to eight exploration and appraisal wells in 2009. Production for 2009 is expected to be in excess of 14,000 barrels of oil equivalents per day. Five of the Company's 18 discoveries are progressing to development decisions, which will increase the reserve base of the Company around the time a plan of development is submitted. The Company will continue to market assets, and will execute sales if the offered price is deemed satisfactorily for Noreco's shareholders. Acquisitions and mergers will be considered provided that they support this strategic direction and create long term value for shareholders.

 

The report will be published on Noreco's website www.noreco.com, and will at the same time be emailed to shareholders and others that have registered their email address at www.noreco.com. The paper version of the report will be sent to all shareholders registered in VPS shortly. Other stakeholders may send an order for copies of the annual report to post@noreco.com.

 

Scott Kerr, CEO, +47 992 83 890

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