-  Operational performance in 2008 was excellent for Noreco. We started the year with at production rates of 9,700 barrels per day and ended the year at record rates of 16,100 barrels per day in December, says Noreco's CEO Scott Kerr.

 

The production was well above the company's guidance.

 

The strong production was underpinned by good underlying performance in the fields. Following successful exploration drilling at the Brage field, a new well was put on production in the beginning of December. At the South Arne field in Denmark, production was curtailed for one week in December but the field is now back in normal production.

 

Noreco's production in the fourth quarter was 14,900 barrels of oil equivalents per day. One week planned maintenance shut down in the Siri area (Siri, Nini and Cecilie fields) and shut downs at the Enoch field in October also impacted the production rates in Q4 2008.

 

Sale of oil in December was done at oil prices of 42 US$ per barrel. Noreco has put options at 50 and 75 US$ per barrel, and the average net price per barrel oil equivalent achieved for the month will be adjusted for put options as well as adjustments for inventory and NGL and gas prices.

 

The production volumes are preliminary and are subject to adjustments, including final allocations between fields, quality adjustments and prices.

 

Scott Kerr, CEO (+47 992 83 890)

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