Oil and gas production was 11,375 barrels of oil equivalents (boe) per day, up from 5,775 boe/day in the previous quarter due to the restart of the Siri, Nini and Cecilie fields and startup of the newly developed Nini East field. Realized oil price was USD 74 per boe. Total revenues for the quarter was NOK 481 million, which includes NOK 37 million in expected insurance coverage, compared to revenues of NOK 322 million in the fourth quarter 2009.

Production expenses were NOK 121 million and included NOK 17 million related to the Siri shutdown. Exploration expenses were NOK 123 million, of which two thirds was related to the dry Frusalen well. EBIT was NOK 35 million. Net financial items amounted to NOK -121 million. Tax for the quarter was NOK -66 million.

Outlook
All fields are now producing, however the Siri area fields are producing below full potential due to limited gas handling capacity at Siri following the startup of Nini East. As a consequence, Noreco's 2010 production is now likely to be in the low end of the previously communicated estimate range of 13,000 - 14,000 barrels per day.

The Oselvar development is progressing according to plan, and is currently around 25% completed. The next milestone is the installation of subsea templates which is due this summer.

For the Huntington development, the first milestone will be the concept selection, which will take place in Q2.

The exploration program for 2010 is unchanged, although the timing of each well may change depending on rig availability. The Barchan well is now expected to be spudded in Q4, which means the first well on the program is Zidane-1 which is planned for Q3 spud.

First quarter report and presentation
The first quarter report and presentation are attached. These are also available at www.newsweb.no and www.noreco.com.
Noreco will present the results for first quarter 2010 today at 08:30 CET. The presentation will be held by CEO Scott Kerr, and will take place at Felix Kurs og Konferansesenter, Bryggetorget 3, Oslo.
The presentation can also be followed by webcast on Noreco's web page www.noreco.com both live and in archived version.

Contacts:
Scott Kerr, CEO, +47 992 83 890
Einar Gjelsvik, Vice President Strategy & Investor Relations, +47 992 83 856

This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)