Production September 2013
Stavanger, 2 October 2013: Norwegian Energy Company (Noreco) produced 3 950 barrels of oil equivalents (boe) per day in September 2013, and net realised price was USD 105.40 per boe adjusted for inventory. Average production for the third quarter this year was 3 117 boe per day at a net realised price of USD 102.00 per boe.
As previously reported production from the Huntington field in the UK is constrained due to issues related to the BP operated CATS gas export pipeline system. This is an exceptional event. According to CATS, the system has an historical uptime of 99.2 per cent. The Huntington reservoir is performing as expected and the FPSO has continued to operate in a steady, reliable manner since late August. The FPSO is currently producing at approximately 40 per cent of capacity due to CATS restrictions. Indications from the Huntington and CATS operators are that the CATS restrictions will be eased through the course of the first half of October.
In the Danish sector, the Siri platform is still off line due to the cracks that were discovered in the substructure this summer. As a consequence the platform is not able to receive oil and gas from the Nini, Nini East and Cecilie fields in which Noreco has an interest. The Siri field operator DONG continues its dialogue with Danish authorities about a temporary by-pass solution for Noreco’s fields. While they are still targeting an earliest possible start-up there is a risk that production may not resume until after the winter season.
Meanwhile, with reference to the license agreements, the licence partners have concluded that security for abandonment costs should be established for the Nini, Nini East and Cecilie fields by 1 January 2014. Noreco’s part of these costs is estimated at approximately DKK 500 million. Discussions are on-going about form, initial amount and build-up of such guarantees.
Production at the Oselvar field in Norway resumed in September but remained unstable throughout the month due to various technical issues at the BP operated Ula platform, which is part of the Oselvar delivery chain. The most recent restart at Oselvar was on 30 September.
As previously reported production at the Lulita field in Denmark restarted on 9 September. This field was closed since April this year.
Production per field, September 2013 (August 2013 in brackets):
Huntington – 3 391 (1 306)
Nini East – 0 (0)
Cecilie – 0 (0)
Nini – 0 (0)
Oselvar – 423 (249)
Lulita – 137 (0)
Enoch – 0 (0)
Total – 3 950 (1 555)
Production per field, third quarter 2013 (second quarter 2013 in brackets):
Huntington – 2 336 (1 188)
Nini East – 427 (2 203)
Cecilie – 46 (347)
Nini – 42 (338)
Oselvar – 222 (407)
Lulita – 45 (79)
Enoch – 0 (0)
Total – 3 117 (4 561)
All production volumes above are in barrels of oil equivalents per day.
Contact:
Ørjan Gjerde, CFO (0047 900 35 738)
This information is subject of the disclosure requirements pursuant to section of 5-12 of the Norwegian Securities Trading Act
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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