-Our two companies are a great fit strategically. The timing is right to further develop the Norwegian oil industry, and is in line with signals from the government, investors and the Norwegian supply industry.  Together we will become a much stronger company and we will create more employment opportunities and increase the value for our shareholders, says Lars Takla, Chairman of the Board in Noreco.  

In addition to production of 18 000 barrels of oil equivalents a day, the new company will have 100 exploration licenses in the North Sea, which can result in a considerable increase in production in the coming years.  

 

The companies are today present in Stavanger, Trondheim, Oslo, Harstad and Copenhagen. The new company will maintain operations at all these locations and further develop them.

-Noreco sees a strong need to further develop the existing expertise in the companies, and we will  keep all employees where they are located today, emphasizes Lars Takla.

 

Several parties have commented that a merger between Noreco and Det norske oljeselskap will constitute a natural development in the Norwegian oil industry. Both companies have their operations in the North Sea and have experienced rapid growth and have high levels of expertise. The merged company will stand strong to meet the challenges of today's market, to secure employment and to further prosper into the future by creating higher values.

-Our analyses show us that this is the right time to consider a merger of these two solid companies. Our impression is also that a combination of the companies is supported by several of the large shareholders in both companies, and we therefore hope that the proposal is well received, says Mr. Takla.

 

Noreco with its main offices in Stavanger was founded in 2005. Since that time, Noreco has consolidated with other companies. Det norske oljeselskap with its main offices in Trondheim is also a company resulting from acquisitions and mergers between several smaller oil companies.

-By combining forces the company will possess great material assets combined with strong financial and operational qualities and a large number of exploration licenses. A merger will be beneficial for all parties involved including Norway as an oil nation, says Lars Takla.

 

Noreco's offer implies that the shareholders of Det norske oljeselskap will get a 52.5 percent ownership in the new company, while the shareholders of Noreco will receive 47.5 percent.

-This is an historical opportunity to create a new, strong Norwegian oil company. I hope that shareholders on both sides see how we together can create greater value for owners, employees and the nation, says Mr. Takla.

A merger will need to be approved by both companies' general meetings with 2/3 majority.

 

For more information, please refer to the stock exchange notice on Noreco's web pages www.noreco.no

 

 

 

 

Press contacts:
Scott Kerr, CEO Noreco, +47 99 28 38 90

Lars Takla, Chairman of the Board, Noreco, +47 99 28 38 51

 

Investor contact:
Einar Gjelsvik, VP Investor Relations, Noreco, +47 99 28 38 56