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NORECO Stavanger, 25 June 2008: Norwegian Energy Company ASA (Noreco - OSE:NOR), Noreco provides an update of its ongoing drilling program, where three wells are being finalized and another three wells are commencing. - We are well underway with our extensive drilling programme. Six of the first seven exploration and appraisal wells have been successful. In parallel, an active infill programme in the producing fields is ongoing to optimise production, says CEO Scott Kerr.
An update on the status on current and upcoming wells is summarised below. An update on the wells for the last part of 2008 and a review of the 2009 exploration and appraisal programme will be presented together with the Q2 results on 24 July. An update on the production guidance for 2008 will also be presented by 24 July.
Drilling update On the Siri field in Denmark, where Noreco holds a 50% interest, a new production well (SCA-3) has been put on production with initial gross production of approx 7000 barrels of oil per day. SCA-3 is the second production well on the Siri field drilled with the Ensco 70 rig. The rig will now move to the South Arne field to drill the South Tor Pod prospect near the South Arne field, where Noreco holds a 6.6% interest. Results from the South Tor Pod well are expected in July.
On the Brage field in Norway, a gas injector well (A-35 A) that will increase the oil recovery from the field has been completed. The next well from the drilling facility on the Brage platform will start in June and is targeting the exploration prospects Talisker and Knockando, with results expected in the fall. Noreco holds a 12.6 % interest in the Brage field.
Drilling of exploration well 1/3-11 on the Ipswich prospect located in license PL 274 in Norway is well underway. Earlier this year, a successful appraisal well with sidetrack on the Oselvar discovery in the same license was drilled. Results from the Ipswich well are expected in July. Noreco holds a 15% interest in the license.
Drilling on the Gita exploration well in Denmark will start in late August/beginning of September. The well will be drilled with the Ensco 101 rig once the rig has finalised and moved from the current well it is drilling in the UK. Noreco holds a 12% interest in the license.
For further information, please contact: Scott Kerr, CEO (+47 992 83 890) Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856)
