Trading update

Stavanger, 18 July 2013: Norwegian Energy Company ASA ("Noreco" or the "Company") hereby releases the following trading update, containing an update on Huntington production ramp-up, Oselvar production status and other relevant operational update as set out below.

Huntington
Production rates from the Huntington oil field have been improving as commissioning of the gas facilities on the FPSO progresses. Following a period of stable operations, current production levels are, according to the operator, at approximately 24,000 barrels (bbls)/day of oil and 19 million standard cubic feet per day of export gas (total approximately 27,400 boe/day). Noreco’s share of this is 5,480 boe/day. The production systems, including gas export, have been performing reliably and the operator forecasts these rates, at a minimum, will continue in the short-term, although there remains the possibility of minor process upsets as specific items of process equipment are worked on and calibrated.

Only one of the two high pressure compressors (the B-train) is currently in operation. The A-train vibration issue continues as a focus for the operator, and the turbine is undergoing re-balancing procedures. The operator anticipates that the A train will be operational within the next few weeks.

In the interim the operator continues to fine-tune the process systems with the intent of increasing oil production above 24,000 bbls/day. However, no guarantees can be given that higher rates will be achieved before the A-train is commissioned.

As soon as full gas compression capability is available production levels will be ramped up to the expected 30,000 bbls/day of oil.  

There have been three successful liftings of crude oil from Huntington totalling more than 500,000 bbls with a fourth lifting of over 200,000 bbls due on July 20th, 2013.

The working interests in the Huntington field are E.ON E&P UK Ltd. (25% Operator), Premier Oil plc (40%), Noreco Oil UK (20%), and Iona Energy Inc. (15%).

Danish fields
Production from the Nini, Nini East, and Cecilie fields has been temporarily shut down as a precaution in accordance with established procedures while the Siri host platform operator (DONG Energy) evaluates anomalies found during a routine inspection of a bulkhead subsea. Further information from the operator is expected within the next few days.

The Lulita field continues to be shut in due to an unsuccessful repair of an Emergency Shutdown (ESD) valve in the Harald gas export pipeline. The operator (Maersk) estimates approximately 5-10 weeks to rectify the situation and restart production.

Oselvar
Scale removal from the produced water facilities on the Ula host platform is taking longer than initially anticipated, and the Oselvar field will according to the operator at Ula (BP) therefore remain shut in until around 24 July.

Contact:
Ørjan Gjerde, Chief Financial Officer. Tel.: +47 900 35 738