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NORECO Stavanger, 24 July, 2008: Norwegian Energy Company ASA (Noreco, OSE:NOR), The oil company Noreco delivered it's best quarterly result ever in Q2 2008, and at the same time enhanced it's balance sheet through acquisitions, share issues and refinancing. Operating revenues were 639 million NOK for the quarter, while the operating result was 466 million NOK. A new record for sale of crude oil was set at 138 USD per barrel in July.
- We are of course very pleased to present our first quarter with positive results. The most important for the company however, was the strategic moves we made. During the second quarter we acquired oil production in Denmark, completed two equity offerings, refinanced debt at better terms and positioned Noreco for further growth. We have ambitious growth targets, and are working hard and structured to meet these. In my mind, we reached a number of milestones in the second quarter hat demonstrates that the company is developing in line with the long term plans we have communicated earlier, says CEO Scott Kerr.
Key figures Q2 Operating income was 639 million NOK in Q2 (476 mill NOK in Q1 2008, 0 mill. NOK in Q2 2007). Driftsresultatet (EBITDA) ble 466 million NOK (273 mill NOK in Q1 2008, -48 mill. NOK in Q2 2007). Net result was 39 million NOK (-28 mill NOK in Q1 2008, -16 mill. NOK in Q2 2007)
Highlights Q2 2008:
* Successful infill drilling contributed to an increased production in the quarter to 11,550 barrels of oil equivalents per day * Acquisition of Talisman Oil Denmark Limited supported Noreco's strategy to build a leading independent oil and gas company in the North Sea * Restructuring of debt portfolio decreases annual interest costs by approximately NOK 60 million * Strong track record on the ongoing exploration and appraisal drilling program continues, seven out of eight wells to date have been successful
Outlook At the current oil prices, the results for the third quarter will be very strong. The acquisition of Talisman Oil Denmark Ltd was formally completed on 18 June 2008, and the second quarter results only reflected 12 days of income from the acquisition whereas the third quarter will see the full impact of the acquisition in the results. Noreco is a growth company and aim to continue to create value organically and inorganically. An extensive work program is planned for the second half of 2008, including high impact exploration and important development milestones.
Q2 report and presentation The Q2 report and presentation is attached, and is also available at www.noreco.com and www.oslobors.no. Noreco will present the results for Q2 2008 on Thursday 24 July 2008 at 09.00 Norwegian time. The presentation will take place at Hotel Continental, Stortingsg. 24 /26 Oslo. The presentation can also be followed by webcast on Noreco`s web page www.noreco.com or at www.oslobors.no/webcast, both live and in an archived version.
Teleconference Noreco will host an analyst conference call with possibilities for questions on 23 July at 14:00 Norwegian time. To join the conference please call 800 888 60 for participants in Norway or + 47 23 10 93 50 for participants outside Norway. Pin code 722161
For further information, please contact: Scott Kerr, CEO (+47 992 83 890) Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856)
