Noreco reports fourth quarter 2010 results

Stavanger, 17 February 2011: Norwegian Energy Company ASA (Noreco, OSE:NOR) today presents its fourth quarter 2010 results, with EBITDA of NOK -66 million and a net result of NOK -135 million. For the full year 2010, EBITDA was NOK 699 million and the net result was NOK 5 million.

Fourth quarter results
Noreco had revenues of NOK 474 million in fourth quarter 2010, an increase of 47 percent compared to fourth quarter 2009 driven by higher production and higher oil prices achieved. Production in the quarter was 10,365 barrels of oil equivalents per day (boed), up from 5,775 boed for the same period the previous year. The achieved oil, gas and NGL prices adjusted for the cost and income from the put options expiring in the quarter was USD 83.9 per boe, compared to USD 68.5 per boe in fourth quarter 2009.

Production expenses were NOK 143 million, while exploration costs amounted to NOK 303 million as two dry wells, Dalsnuten and Barchan, were completed during the fourth quarter.

EBITDA (earnings before interests, tax, depreciation and amortization) in fourth quarter was NOK -66 million, compared to NOK 134 million in fourth quarter 2009. Net result for the quarter was NOK -135 million, compared to NOK -87 million in fourth quarter 2009.

Outlook
Noreco today presents its production forecast and investment programme for 2011. The company plans to participate in 10 exploration wells, with a corresponding exploration budget for the year of NOK 1.0-1.1 billion. Investments in the field developments at Huntington Forties and South Arne phase III are estimated to be NOK 0.5 billion, while planned investments in existing fields amount to NOK 0.3 billion.

The company's current production forecast for 2011 is based on a probabilistic method taking into account both upside and downside risks, resulting in a forecast range of 8,500 boed (P90) to 10,700 boed (P10) with a mid point (P50) of 9,550 boed.

Fourth quarter report and presentation
The fourth quarter report and presentation are attached. The documents are also available for download at www.newsweb.no and www.noreco.com.

Noreco will present the results for fourth 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
Kjetil Bakken, Investor Relations Manager, +47 91 889 889

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