After Denmark, Noreco Eyes UK Acquisitions
Norwegian Energy Company (Noreco) plans to acquire offshore assets on Britain's continental shelf in 2019, following its purchase of Shell's upstream oil and gas licenses in Denmark, its chairman told Reuters on Thursday.The Oslo-listed company on Wednesday announced a $1.9 billion deal to acquire Shell's 36.8 percent stake in the Danish Underground Consortium (DUC), which accounts for 90 percent of Denmark's petroleum output."I think we should be capable of doing something in the U.K., hopefully in the first half of 2019, but definitely in 2019,"…
Shell Sells its Danish Upstream Assets for $1.9 Bln
Royal Dutch Shell has agreed to sell its Danish upstream business to Norwegian Energy (Noreco) in a deal valuing the assets at $1.9 billion, as part of its wider divestment strategy, the company said on Wednesday.The sale brings Shell's three-year $30 billion divestment plan close to its conclusion, having begun the process in 2015 after the acquisition of BG Group. Deals so far have included large portfolios in the British North Sea, Gabon, Thailand and Canada."Today's announcement is consistent with Shell's strategy to simplify its portfolio through a $30 billion divestment program and contributes to our goal of reshaping the company into a world-class investment case…
Lindseth quits Noreco
The independent Norwegian oil company, Noreco stated that its Board and Cecilie O. Lindseth, the Managing Director, have agreed not to renew her employment contract. According to the contract her last day as Managing Director of Norwegian Energy Company ASA will be 31 March 2018. The Board would like to thank Cecilie O. Lindseth for her contribution to the company.
Det Norske hit by Revenue Drop
Det Norske Oljeselskap ASA slumped to an operating loss in the first quarter on significantly lower revenue. The company reported a revenues of $ 205 (Q1 2015: USD 329) million in the first quarter. Production in the same period was 60,600 barrels of oil equivalent per day, while the realized oil price was $ 37 on average per barrel. EBITDA for the quarter amounted to 129 (261) million, and EBIT was -23 (86) million, after an impairment charge of 38 (53) million dollars. The quarterly result was 32 (2) million, giving earnings per share (EPS) of 0.16 (0.01) dollars. Net interest-bearing debt amounted to 2,584 (1,965) $ one million as of March 31, 2016.
Noreco Hands Cash and Licenses to Det Norske to Cut Liabilities
Oil firm Det norske will take over smaller competitor Noreco's Norwegian license portfolio and a pile of cash at no cost, the latest in a string of deals by companies on Norway's continental shelf, it said on Wednesday. The transaction absolves Noreco of making further investments and will allow bond holders to recover an estimated 94.7 percent of the principal amount under the firm's NOR06 bond issue, Noreco said separately. The portfolio taken on by Det norske consists of seven licenses, including a 20 percent stake in the Gohta discovery in the Barents Sea and 45 million Norwegian crowns in cash, the two firms said.
Noreco Exits Huntington license
Reference is made to announcement made on 2 November 2015, concerning a default by Noreco Oil UK in the Huntington license. Norwegian Energy Company ASA (Noreco) reports that its UK subsidiary, Noreco Oil UK, has now been served formal notice by the license partners, E.ON UK E&P Limited and Premier Oil Plc, that they will exercise their rights to acquire Noreco’s participating interest in the Huntington license for no consideration, in accordance with their rights under the JOA.
Noreco Sells Norwegian Petroleum Activities
Norwegian Energy Company ASA (‘Noreco’) announces that its fully owned subsidiary Noreco Norway AS (Noreco Norway) has entered into a Sale and Purchase Agreement (‘SPA’) with Djerv Energi AS (‘Djerv’) for the sale of its exploration licence interests, organisation and management systems. The owners of Djerv will be a US based investment fund (70%) and Noreco (30%). The owners of Djerv will subscribe on equal terms prorata in a primary offering, to ensure that the company is funded for known commitments. Additionally, Noreco Norway has entered into an SPA to transfer its 4.36% participating interest in the Enoch licence to CapeOmega AS.
Noreco Update on Huntington Licence
Norwegian Energy Company ASA (Noreco) reports that its UK subsidiary, Noreco Oil UK, has been served a notice of default (the Notice) under the Joint Operating Agreement (JOA) governing the Huntington licence. Post the completed restructuring in April 2015, Noreco retained Stellar Energy Advisors to sell its 20% participating interests in the Huntington licence. This process has now been terminated as no acceptable offers were received. The default relates to non-payment of a cash call under the JOA, and implies that Noreco Oil UK will no longer receive revenues from production on the Huntington field.
Noreco CEO Quits
Norwegian Energy Company ASA (Noreco) announces that Tommy Sundt is stepping down as CEO of Noreco ASA. Since joining Noreco in September 2014, Tommy Sundt has played a very important role during the financial and corporate restructuring of the Company. Whilst Mr. Sundt’s role as CEO for the Noreco group will cease with effect from this announcement, Mr. Sundt will continue to fill the role as general manager for the Norwegian operations until the end of 2015. Mr. Sundt’s departure has been agreed with the Board and Mr. Sundt will receive severance payment in accordance with his contract.
CFO Slettebø Quits Noreco
Odd Arne Slettebø, CFO of Noreco since November 2014, has handed in his resignation and his employment will cease on 31 October. Since Mr. Slettebø joined Noreco in 2012 he has played a central role within accounting, compliance and the restructuring processes during the past years. Noreco wishes to express its gratitude for his hard work for the company, and wishes him all the best in his future endeavours.
Noreco Production Update
Net production for Norwegian Energy Company ASA (Noreco) in July 2015 is estimated at 3,060 barrels of oil equivalents (boe) per day. Net realised price in July was USD 47.7 per boe (USD 49.6 per barrel of oil) after adjustments for inventory, NGL and gas prices. The Huntington field production has been relatively stable throughout July. The CATS onshore summer slowdown (scheduled for June and July 2015) has had no impact on Huntington production. The Lulita field has been closed in since early July due to technical problems. The duration of the shut down is presently unknown. Reported July production for Lulita is based on an equity share of 10 per cent, i.e.
Edison Norge Drills Dry Well in North Sea off Norway
Edison Norge, a part of French EDF Group, drilled a dry well in the Haribo prospect, southwest of the Valhall field in the Norwegian sector of the North Sea, a partner in the license, Noreco, said on Monday. "The Haribo exploration well has been drilled to total depth without encountering hydrocarbons. The well will now be plugged and abandoned," it said in a statement. Edison Norge has 25 percent in the license and Noreco owns 20 percent. The other partners include Concedo with 20 percent, Lime Petroleum Norway with 15 per cent, North Energy with 15 percent and Skagen 44 with 5 percent. (Reporting by Nerijus Adomaitis)
Edison Norge Drills Dry Well in North Sea
Edison Norge, a part of French EDF Group, drilled a dry well in the Haribo prospect, southwest of the Valhall field in the Norwegian sector of the North Sea, a partner in the license, Noreco, said on Monday. "The Haribo exploration well has been drilled to total depth without encountering hydrocarbons. The well will now be plugged and abandoned," it said in a statement. Edison Norge has 25 percent in the license and Noreco owns 20 percent. The other partners include Concedo with 20 percent, Lime Petroleum Norway with 15 per cent, North Energy with 15 percent and Skagen 44 with 5 percent. (Reporting by Nerijus Adomaitis)
NORECO's Production Update
The Norwegian Energy Company ASA (Noreco) group, reported a net production in June 2015 at an estimated 4,320 barrels of oil equivalents (boe) per day. Net realised price in June was USD 54.5 per boe (USD 60.6 per barrel of oil) after adjustments for inventory, NGL and gas prices. For the second quarter 2015 production was 4 894 (3 236 in Q1) boepd at an average net realised price of USD 55.6 per boe (USD 60.7 per barrel of oil). No material production irregularities were reported at the fields in June. The gas transportation agreement for Huntington has been amended.
Noreco Ink Deal with Denmark Partners
Norwegian Energy Company ASA announces that it has reached an agreement with its joint venture partners in Denmark with respect to its forfeited licences and related abandonment liabilities. Noreco has terminated its joint venture and its participation in the Nini and Cecile oilfields (the “Licences”). According to provisions in the respective joint operating agreements, Noreco has forfeited and transferred its participating interests in the Licences to the Partners on a pro-rata basis. In addition, the settlement for claims on defaulted cash calls and capping of the abandonment liability includes a cash consideration of NOK 60 million…
Niobe Exploration Well Spudded
Drilling of the Niobe exploration well in UK licence P1889 has started. The Norwegian Energy Company ASA (Noreco) group is partner in the licence with a current equity interest of 22.5 per cent. The licence is located in blocks 12/26b and 12/27 close to the Beatrice oil field in the Outer Moray Firth area off the north east coast of Scotland. The well is being drilled by the jackup drilling unit Ensco 100. The main target is in a stratigraphic pinch-out trap in Late Jurassic sands 940 meters below mean sea level. Drilling time to target depth is estimated to 31 days.
Noreco Discovers Hydrocarbons in Xana-1X
Hydrocarbons have been discovered in the exploration well Xana-1X. The partnership will now evaluate if there is a sufficient volume of hydrocarbons for commerciality. Spudded on 8 December 2014 in licence 9/95 in the northern part of the Danish sector of the North Sea with Maersk Oil as operator, the well was drilled by the jack-up unit Noble Sam Turner to a total measured depth of 5124 metres. The well is now being plugged and abandoned. Through a Danish subsidiary Norwegian Energy Company ASA (Noreco) holds a 16 per cent ownership in the licence, which is operated by Maersk Oil. Noreco has paid its share of the licence cost and the interest in the licence is therefore retained.
Update on Noreco's Danish Licences
As previously reported, Norwegian Energy Company ASA’s (Noreco) Danish subsidiary was in January prevented from making payments for its share of production costs at the Nini field, and it was consequently in breach of the licence agreement. As this situation was not remedied as of 21 March 2015, the other partners may now claim Noreco’s 30 per cent interest in the licence without any consideration. As part of the negotiations to agree on an overall restructuring proposal for Noreco, a committee of bondholders stated that their consent would require that the costs and cash flows related to Noreco’s operations in Denmark must be improved.
Herlofsen Elected to Statoil’s BoD
In a meeting in the Corporate Assembly of Statoil ASA (OSE:STL, NYSE:STO) 18 March 2015, Rebekka Glasser Herlofsen was elected as new shareholder representative to the company’s board of directors. Grace Reksten Skaugen withdraws from the position as a member of Statoil’s board of directors. Reksten Skaugen had at an early point in time informed the nomination committee that she did not wish to stand for re-election in 2015. Since 2012, Herlofsen has been the Chief Financial Officer in the Norwegian shipping company Torvald Klaveness. She has broad financial and strategic experience from several corporations and board directorships.
Herlofsen Joins Statoil’s Board of Directors
In a meeting in the Corporate Assembly of Statoil ASA March 18, 2015, Rebekka Glasser Herlofsen was elected as new shareholder representative to the company’s board of directors. Grace Reksten Skaugen withdraws from the position as a member of Statoil’s board of directors. Reksten Skaugen had at an early point in time informed the nomination committee that she did not wish to stand for reelection in 2015. Since 2012, Herlofsen has been the Chief Financial Officer in the Norwegian shipping company Torvald Klaveness. She has broad financial and strategic experience from several corporations and board directorships.
