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NORECO Stavanger, 24 July 2008: Norwegian Energy Company ASA (Noreco - OSE:NOR), The oil company Noreco increases its guidance for 2008 production by more than 25% to 11,500 - 12,000 barrels of oil equivalents per day.
- Based on strong performance from our portfolio of seven producing fields we are increasing our guidance for 2008. We have also stepped up our production levels after the acquisition of Talisman Oil Denmark, and the company is generating very strong operating cash flows which underpins further growth of the company , says CEO Scott Kerr.
- The new guidance does not include the production from Talisman Oil Denmark from 1 January 2008 to 18 June 2008 although we enjoy the economic benefit of this production. We are fully able to account for production from the transaction from the 18th of June and as a result the average production for the second half of the year will be in excess of 12,250 barrels per day, continued Kerr.
In February 2008, Noreco reported it's expected 2008 production of oil, gas and NGL to be 9,000 - 9,500 barrels of oil equivalents per day (boed). Based on the actual production in the first half of the year and current forecast for the second half, the guiding for 2008 production is increased to an average of 11,500 - 12,000 boed for the full year. This guidance includes production from the acquisition of Talisman Oil Denmark from 18 June 2008, when the transaction was formally completed.
The average production in the first half of the year was 10,750 boed. The average daily producion for the second half of 2008 is expected to be in excess of 12,250 boed. Production shut downs for planned maintenance on the South Arne field (16 days in August/September) and the Siri area fields (6 days in October) will lead to variation in production levels from month to month. Shut down for planned maintenance on the Brage field was completed in the second quarter according to plan.
Note that the 2008 guidance does not include approximately 1,500 bopd from the 30% of the Siri field acquired from Talisman from the period of time from 1 January 2008 to 18 June 2008. Although Noreco has had the economic benefit of this production from 1 January, the company is only counting this production from 18 June 2008.
Facts on Noreco's seven producing fields Noreco holds interests in the following producing fields:
Field Ownership Country Brage 12.6% Norway Enoch 4.3% Norway Siri 50% Denmark South Arne 6.6% Denmark Nini 30% Denmark Lulita 28.2% Denmark Cecilie 61% Denmark
For further information, please contact: Scott Kerr, CEO (+47 992 83 890) Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856)
