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NORECO (OSL:NOR) Stavanger, 30 September 2008: Norwegian Energy Company ASA (Noreco - OSE:NOR), Noreco remains very proactive in managing the business and the debt position. Noreco has sufficient cash from its strong production to run the company and meet its debt obligations, and the company is not and does not expect to be in breach of any of its financial or other covenants.
- There have been rumours lately regarding Noreco's covenants. As a general rule we do not comment roumours, but this time the rumours are so widespread that we have chosen to inform the market, says CEO Scott Kerr.
- We are systematically reviewing the relevant financial covenants and I can confirm that Noreco is not and does not expect to be in breach of any of its financial or other covenants. Noreco has been in dialogue with Norsk Tillitsmann, who confirms the position of Noreco in relation to its bonds, says Kerr.
In the third quarter, Noreco has used some of the company's cash position to reduce debt. At the end of the third quarter, Noreco will routinely review all its financial covenants pertaining to its bonds and report to Norsk Tillitsmann that the company is not in breach of any of its financial or other covenants in accordance with the terms of the respective bond loans.
- Noreco has a strong production, the oil prices are still high and we have sufficient cash, and our main message today is that we have the flexibility to meet our obligations, says Kerr.
For further information, please contact: Scott Kerr, CEO (+47 992 83 890) Einar Gjelsvik, Vice President Investor Relations (+47 992 83 856) Jan Nagell, CFO (+47 994 97 271)
